Over recent years, the Nicaraguan financial system has
progressively grown and strengthened. According to recent
studies of the Nicaraguan Foundation for Economic and Social
Development (FUNIDES) the financial sector growth rate is
second only to the construction sector among the economic
sectors that are included within the monthly economic activity
An important event for the development of the financial
market in Nicaragua is the recent approval by the
Superintendence of Banks and Other Financial Institutions
(SIBOIF) of the first real estate management fund company, to
manage real estate investment funds. This makes Nicaragua only
the second country in Central America after Costa Rica where
such vehicles are authorised.
According to law number 587, the Capital Market Law, a real
estate investment fund is an independent patrimony managed by a
management fund company, whose main purpose is to obtain income
from leasing or selling the real estate in which funds are
invested. For example, that would be the sale of houses,
apartments, offices, parking lots, warehouses, industrial or
commercial facilities, and so on. The profit obtained from
these operations is distributed between all the participants,
based on their individual contributions.
Individuals may participate with small amounts between
$1,000 and $20,000.
During the first five years of operations of this entity, it
is expected that it will raise $150 million, approximately
equivalent to three percent of the deposits in the national
financial system. There are 120 Nicaraguan entrepreneurs who
have already invested in Costa Rica's real estate funds who are
willing to invest in the new local fund.