Nicaraguan Central Bank chiefs quit in wake of scandal

Several senior executives of the Nicaraguan Central Bank are resigning as a result of accusations of corruption by their predecessors.

Friday, May 9, 2008

As the government renegotiates its domestic debt, senior economic officials say the crisis has eroded confidence in one of the nation's few credible institutions.

More on this topic

Nicaragua's central bank reaches deal on US$157 million Cenis debt

June 2008

Nicaragua's central bank is going to pay Banco de la Producción the US$157 million it owes over the Cenis scandal, in which millions of dollars of private debt were turned into government obligations.

The central bank will pay the debt off over 20 years at a relatively low interest rate in a deal that will lift the threat of a sequestering order imposed by a judge.

Prosecutor completes inquiry into Nicaraguan mega-scam

June 2008

Armando Juárez, the prosecutor in Nicaragua's biggest-ever financial scandal, the Cenis affair, said he has completed his inquiries and will present his case next month.

In the Cenis affair, millions of dollars of private debt were converted into public debt, and several politicians are said to have made overnight fortunes.

Nicaragua Announces Value of Withheld Securities

April 2008

The directors of the Banco de la Producción (Banpro) delivered to Judge Julio César Arias yesterday and to Special Prosecutor Armando Juárez two Negotiable Investment Certificates (Cenis) worth 16 million dollars, and a zero-coupon bond worth more than seven million dollars. They were to receive these securities between April and October of this year.

Sources at Banpro said the first certificate, valued at eight million dollars, was to be cashed on April 15; the zero-coupon bond on July 15 and the other Cenis in October.

Resignations leave major gaps in Nicaragua's central bank

May 2008

The resignation of three of the Nicaraguan central bank's five-person board could prove an obstacle to a new agreement with the International Monetary Fund, said leading economist Néstor Avendaño.

Without a full board, the bank will be unable to issue debt that would help it to meet its obligations, Avendaño added.

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