Recovery funding: PR cash crunch; Nicaragua Nate recovery

Cash crunch hits storm-stricken Puerto Rico

More than three weeks after Hurricane Maria made landfall, Puerto Ricans continue to wait for hours at automated teller machines, spurring a key lawmaker to call on the US territory's banking industry to accelerate efforts to restore operations at remaining offline units and work more quickly to restock cash at functioning ones.

Local daily El Nuevo Día reported that the president of Puerto Rico's chamber of deputies Carlos "Johnny" Méndez Núñez called on Puerto Rican banking association (ABPR) Friday to facilitate cash withdrawals, including a temporary removal on the upper limits on the cash available per transaction.

A government website detailing progress on the massive recovery effort noted Friday that 61.7% of the island's 664 ATMs were operating with the furthest progress coming with Banco Popular (68.6% restored) and Oriental Bank the furthest behind (37.5% restored).

However, El Nuevo Día reported the government figures were deceptive, as the current government data on the ATM network is outdated, and many machines can only be accessed when the adjacent branches are open; many of which are not or are only open with limited hours.

Furthermore, there are frequent reports of consumers experiencing long waits at units only for the machine to run out of available cash.

The situation adds to an already difficult and complicated recovery effort, where damaged card payment infrastructure requires residents to rely on cash purchases for basic needs and rebuilding materials.

MSMEs and tourism focus of bank efforts in Nate recovery

Nicaraguan microfinance organization Asomif is coordinating efforts with private bank association (Asobanp) to arrange financing for MSMEs (micro, small, and medium enterprises) and tourism-dependent businesses, as the nation mounts efforts to recover from the recent passage of Tropical Storm Nate.

According to local daily El Nuevo Diario, Asomif has set aside 30mn cordobas (~US$1mn) for assisting MSMEs in Nate recovery efforts, and the organization has already begun meeting with affected businesses to organize needed disbursements.

Asomif president Veronica Herrera, speaking to the daily, said that figure could rise depending on demand, adding much of the affected businesses are based in the southern region of the nation.

Businesses leaders from the hard-hit municipalities San Juan del Sur and Tola have met with both associations and bank officials to request facilitated financing and special grace periods of up to three months as they rebuild.

Answering the call, Nicaragua's Banco de Producción (Banpro), a holding of Promerica Financial Corporation, has proposed special loans of between US$10,000 and US$300,000 to the two tourist-focused municipalities, extending a three-month grace period, as well as special financing conditions that include an 8% interest rate.