According to the ratings agency the political polarization that characterizes the Legislature which will take office on May 1 could hamper the implementation of the fiscal reforms that the country needs.
From an article by Fitch Ratings:
El Salvador's New Legislature May Yield Fiscal Restraint
Fitch Ratings-New York-23 March 2015: Gains by opposition parties in El Salvador's legislative assembly could result in a compromise to improve the sustainability of public finances but political polarization is likely to continue weighing on the prospects for growth-enhancing and security reforms, Fitch Ratings says.
The funds will be used in the projects that were going to be financed by the withdrawn resources of the U.S. Millennium Challenge Fund.
The president of Nicaragua, Daniel Ortega, announced on Sunday, June 14th that its Venezuelan counterpart Hugo Chávez approved $50 million to the Central American country for the project of territorial, infrastructure, and rural road improvements.
With 46.3% of the votes counted, the Elections Tribunal announced that the FMLN had won 37 seats, three more than its main rival, the right-wing Nationalist Republican Alliance.
According to europapress.es: "When confirmed, these results will give the FMLN will have five more lawmakers than in the previous legislature, and would control the Legislative Assembly, the unicameral organ that is made up of 84 lawmakers, with the support of some of the minority parties, according to the 'El Salvador' daily. The old guerrillas managed to improve in the results especially in the eastern part of the country, which is historically unfavorable to the FMLN.
Holland announced that it will not pay the 12 million euros of aid to the Nicaragua government scheduled for 2008 and 2009 due to the contested municipal election held on November 9.
"I don't see it as reasonable to give direct aid to the Sandinista government which has done all it can to prevent free and fair elections," said the Minister of Development, Bart Koenders, in a release.
The EU has joined the the stance adopted by the US regarding the Millennium Account, and announced that it will not turn over some $37 million to Nicaragua.
This is due to the criticism of the recent electoral process and complains about "the offenses" committed by President Daniel Ortega against contributors.
Fraysse insisted that the measure is not "repression or blackmail" of Ortega's government, who is accused of electoral fraud by the opposition, but suggested that Nicaragua has not complied with "norms" established in the cooperation agreements.
PRONicaragua, is the Nicaraguan Investment Promotion Agency, established in 2002. We are a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The Agency provides complimentary support services to qualified investors seeking investment opportunities in our country.
Operates in Nicaragua
Phone: (505) 2270 6400
Develhotel.com is the new B2B online portal for the management and development of hotel projects and assets all over the world.
Operates in Panama, Nicaragua, Honduras, Guatemala, El Salvador and Costa Rica
Phone: (34) 669117129