Finance Capital stood out last week because of the devastation of the political crisis in the economy. The supremacy of banks and other financial institutions (Siboif) revokes Finance on 8 February to issue securities on the Stock Exchange of Nicaragua (BVN), after the directors have informed them that they would not fulfill their obligations. can fulfill & # 39; "With the corresponding investors on 8 and 10 February.
The decision to withdraw the power to Finance Capital took the Siboif last Friday at 2 pm after a meeting with representatives of that entity and informed the Exchange through the resolution SIB-OIF-XXVII -013-2019, which is available on the BVN website.
"Withdraw the authorization granted to Financia Capital S.A to execute a public offering of the fixed-income securities registered under registration number 0405 and resolution number 0420 of 06 December 2016", is the resolution. This information was passed on to the various exchange positions.
Parallel to the measure adopted by Siboif, the rating agency SC Risk agreed to lower the rating to Financia "because there has been a sudden and severe deterioration of the portfolio's quality indicators and the liquidity index". According to the agency's report, that situation has considerably reduced Financia's ability to pay with its investors.
The press contacted sources with regard to capital financing and confirmed the financial difficulties faced by the institution as a result of the impact of the socio-political crisis on the economy, which is causing problems to recover the money from the investors.
That is why the finance directors have called on investors, that is to say those who bought the issuance of that entity, to analyze payment arrangements and, on the basis of that entity's response, this entity will issue corresponding communications.
The source confirmed that the meeting with the holders of their commercial papers and bonds will be held at the Hilton Princess hotel on Wednesday 13 February at 10 am. In this meeting, we will discuss a debt payment arrangement that is proposed to investors to meet all liabilities after the expiry of the term.
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Although the source did not want to specify the extent to which the balance is in default, it appears from the Siboif resolution that Financia Capital had the authority to issue eight million dollars of standardized securities.
In this way, Finance Capital spent less than five months in the second financial institution doing business in the stock market and suffers from liquidity problems to meet its obligations to investors or holders of securities.
At the end of October last year, Mauricio Pierson Stadthagen, CEO of Credifactor, confirmed that they were having difficulties to pay their debts to investors, but they agreed on a payment arrangement.
On that occasion, he explained that because of the uncertainty that the crisis in the national financial system entailed, as with the banks, investors in the stock exchange asked for the return of their money as soon as the acquired instruments expired. have exceeded the payment capacity of the issuers.
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This same situation is faced with Capital Financing, a source confirmed.
How does the scheme work? Generally, these companies, which have different business deals, issue securities through exchanges authorized by Siboif, for which they pay interest and have an expiration date. The liquidity that they receive is invested, for example, in microloans, factoring, among other things, in order to achieve a return.
The situation of non-payment in capital financing came from last year, when SC Risk decided on 21 December last year to lower the note to the entity because of the "materialisation of negative effects on the financial situation of the entity, product of the consequences of the socio-political crisis that Nicaragua is facing, which has affected many sectors of the economy and because of the uncertainty that exists about a possible solution to that crisis ".
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At that time, the office ruled that "it was unlikely" that a recovery would take place in the short term. On the contrary, because of the economic environment warned of a worsening.
In the resolution of SC Risk on 8 February, on the same day that Siboif Financia had withdrawn the authority to issue on the Stock Exchange, the credit rating agency warned that there is "a big chance" that the note of that entity will decrease in the medium term. Up to now, Financia Capital has not appealed to the assessments it has received from SC Riesgo.
The socio-political crisis lasting 297 days led to the exit of more than $ 1,500 million from the national financial system due to uncertainty. Also in January the stock market recorded a resounding fall, only to realize operations for 655 million córdoba & # 39; s, under 14,383 million córdoba in the same month of 2018.