Kelvin Marshall – Del Sur News
The short answer to the question is; Yes, some of them, up to a certain amount.
In Nicaragua, an organization called FOGADE, the Fondo de Garantía de Depósitos de las Instituciones Financieras de Nicaragua (the Deposit Guarantee Fund of Financial Institutions of Nicaragua) insures some accounts (with restrictions) up to a maximum of US $10,000.
FOGADE was created after four banks went bust in the period from 2000-2001. In order to safeguard bank customers from any future similar incidents, FOGADE was created by Law No.371, Law on Deposit Guarantee in Institutions which became law on January 30th, 2001. Subsequently Law 371 was repealed and replaced by Law 551 (Law of the Deposit Guarantee System) on August 30th, 2005, and later amended by Law 563, Law of the Amendment to Law 551 on November 25th 2005.
FOGADE was given far reaching powers with jurisdiction throughout the national territory. It is a legal entity and an autonomous administrative body. As the exclusive insurer of public deposits, FOGADE combines with the Central Bank of Nicaragua and the Superintendent of Banks and other Financial Institutions to promote stability and confidence in the national banking system.
FOGADE is one of 63 members of the International Association of Deposit Insurers (IADI) headquartered in Switzerland and formed in May 2002.
Guarantee Limit and Restrictions
The Deposit Guarantee applies to a maximum PER DEPOSITOR (per person or legal entity), no matter how many accounts that person (or Legal Entity such as a business like an S.A.) has with that financial institution. The coverage is the equivalent of US $ 10,000.00 of national or foreign currency. This includes the principal and interest accrued up to the date of any compensation being made.
If the account(s) are joint (two or more depositors), the maximum amount of US $ 10,000.00 will be distributed in a “pro-rata” way among the account holders (unless another previously agreed system is in place).
The accounts covered by the guarantee are:
- “Deposits in Sight” (an account where the deposited money can be requested by the depositor at any time, a current account for example),
- Savings Deposits and
- Term or Term Deposits.
Note: Approximately 93% of the population’s accounts that qualify as above are protected by FOGADE.
Visit the FOGADE web site for a list of deposits not covered or excluded by the guarantee.
Members Nicaraguan Institutions:
Banpro, Banco Lafise Bancentro, BAC Credomatic, BDF, Banco Ficohsa, Avanz and Bancorp