According to Fitch Ratings the reelection of Daniel Ortega as president of Nicaragua means stability in the country's economic policies.
Stability and economic and political continuity is what Fitch Ratings envisages for Nicaragua after the outcome of the presidential elections last Sunday, in which President Daniel Ortega was declared the winner, with 70% of the vote, according to a report by the Supreme Electoral Council.
The vast majority of nicaraguans intend to vote for the re-election of the current President, Daniel Ortega, which would ensure the continuity of the current policies used to run the country.
Confirming what has been published by other pollsters,M & R Consultoresnotes that the results of its seventh national survey put the clear favorite to win the presidential election as Daniel Ortega and his wife Rosario Murillo, who accordingtothis survey now have 66.3% of the vote. The nearest contender has only 8% of the vote, while the so-called hidden vote is 20.6%.
Less investment, depletion of international reserves and contraction of public spending, in the opinion of Funides, are some of the effects that might be felt if the US Senate approves the bill.
The Nicaraguan Foundation for Economic and Social Development (Funides) has analyzed the potential impact of a possible US approval of the bill known as the "Nica Act", which aims to place conditions on the granting of loans by international institutions to the Ortega administration.
The lack of clarity about the future of the concession of the Tumarín hydroelectric project may be forcing other investment projects in the energy market to be put on hold.
The Ortega administration has not yet announced what process will be followed in order to re start the 253 MW hydroelectric construction project, whose concession was awarded directly by the government to the consortium made up of Eletrobras and Queiroz Galvao.
Government spokeswoman Rosario Murillo relayed the presidential decision to declare mining in Rancho Grande unviable, and cancel exploration in the area.
The mining concession was obtained by the Canadian company Nueva Esperanza in 2005 and two years ago another Canadian company B2Gold took over the project, which still was in the exploration stage, but without any earthworks having been carried out.
The Ortega administration may be taking up once again the port privatization project conceived in 2000 and may be close to awarding a concession to an international operator.
In November 2000 an article in Laprensa.com.ni reported that "the privatization of the Port of Corinto which would serve as a model for a similar process in other ports in the country, was the center of discussion at a seminar in which the results of a preliminary study on the issue were announced, said Roberto Zelaya Blanco, chief executive of the National Port Company (EPN). "
Although the law had been adopted by consensus at the National Assembly, government legislators did not oppose the veto imposed by President Ortega.
An article on Laprensa.com.ni reports that the standard vetoed "... created an autonomous body of public and private nature, called a Convention Bureau to promote the holding of international events in the country, offering logistic conditions, security and hotels in order to welcome hundreds of thousands of tourists. "
The Ortega administration will be creating a vice-minister who will be exclusively devoted to serving the needs of large and medium enterprises in the country.
The deputy minister will come under the Ministry of Development, Industry and Trade (MIFIC) and, as stated by the president himself Daniel Ortega, the purpose of this entity will be to serve only the needs of these businesses, separating them from the attention of small and micro companies.
In order to take advantage of the conditions offered by both countries for the development of farming a proposal will be made to the Mexican companies Lala and Sukarne to expand operations to Honduras.
The objective of this proposal is to maximize the conditions offered by both Nicaragua and Honduras for the development of agricultural activities, both in the processing of milk and dairy products as well as in the meat sector.
The Executive is proposing a reform of the law on exploitation of geothermal resources to extend the period of the concessions granted to foreign companies from 25 to 30 years.
In order to encourage investment in the energy sector, the reform of the "Law on Exploration and Exploitation of Geothermal Resources" , sent by President Daniel Ortega to Parliament also proposes increasing the extendable term requested from the State by companies with exploitation rights, from 10 to 30 years.
Having for years funded public spending with resources from the Venezuelan government, the country now plans to issue government bonds abroad.
The stable economic growth that Nicaragua has achieved in recent years has enabled the country to improve its financial position and has impacted positively on the country's risk perception on the part of international investors, giving it an important advantage in the event of a possible bond debt issue on the international market.
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