Second Nicaraguan bank collapses

Nicaragua is facing a crisis in its fragile financial system after the regulator moved to take over the second bank to fail in the past 100 days, and attacked the government for refusing to guarantee its customers' deposits.

The Superintendency of Banks took over Banco del Cafe at the weekend and revealed it had up to $50m in bad loans and less than $5m in provisions to cover them. Noel Sacasa, the superintendent, said: "The bank is in a state of manifest insolvency from which it cannot recov