Five years after the big announcement made by President Ortega and the Chinese company HKND, of the famous project to build a large inter-oceanic canal in Nicaragua, there are only tales.
The mega-project promised at the time by the Ortega government was estimated at $50 billion and promised to be built in five years, from 2014 to 2019, and to start operations in early 2020.
The European Parliament's plenary session proposes that the European Commission apply the democratic clause in the EU-Central America Association Agreement, which would involve Nicaragua's withdrawal from the agreement.
Almost two years after the start of the political and economic crisis in Nicaragua, MEPs are proposing to sanction the Ortega administration with the eventual withdrawal of the country from the trade agreement.
Although several sectors disapprove of the initiative, in Nicaragua the Legislative Commission in charge of the reform endorsed the bill that seeks to remove the power of businessmen to propose their representatives to the Coffee Commission.
On August 14, the Production and Economy Commission of the National Assembly ruled positively on the initiative presented by President Ortega to modify the Law for the Transformation and Development of Coffee Farming.
In the midst of Nicaragua's delicate economic situation, the government has announced that the 5.2% increase in the minimum wage agreed in March will come into effect on September 1.
Official media reported that the National Minimum Wage Commission ratified the agreements reached in March 2018, and from September 1 the new salaries will enter into force.
In search of a solution to the crisis that has Nicaragua on tenterhooks, the business sector has asked Ortega to bring forward presidential elections in an orderly manner and with a renewed Electoral Council.
In a letter signed by the main Nicaraguan business leaders, the private sector demands that President Ortega stop the violence against the demonstrators and call presidential elections early, as a last step to begin to solve the crisis in which the country has been immersed since mid-April.
In the view of Fitch Ratings, continued political unrest could undermine investment conditions and economic growth, as well as raise the risks of confidence shocks to the financial system and macroeconomic stability.
From a statement issued by from Fitch Ratings:
Fitch Ratings-New York/San Salvador-17 May 2018: Continuing protests and resulting political violence in Nicaragua heighten risks to political stability and governability, says Fitch Ratings. Continued political unrest could undermine investment conditions and economic growth as well as elevate risks of confidence shocks to the financial system and macro stability.
In Nicaragua, President Ortega has revoked the controversial law to reform the National Institute of Social Security, but demonstrations continue and business leaders are calling on the government to have a dialogue.
Five days of protests, looting and several deaths in different areas of the country is the result of the controversial reform that the Ortega administration announced on Wednesday, and which only five days later, it had to revoke in order to try to ease social tension.The reform aimed to raise the contribution paid by companies by 2% and employees' contribution by 5%, effective from July.The presidential decree 04-2018 was published this Monday in the Gazette number 76.
In Nicaragua, the Ortega administration has authorized raising the maximum limit allowed for the central government's debt to $1.170 billion.
Through a decree published in the official newspaper, La Gaceta, the Executive Power has authorized raising the maximum limit of debt that the central government can take on by $60 million.
The lower house of the US Congress has approved the law known as the Nicaraguan Investment Conditionality Act or Nica Act, which proposes placing conditions on loans granted by international institutions to the government of Daniel Ortega.
The Nica Act, promoted by two US congressmen to limit investment and international financing in Nicaragua, was again seen by the lower house, which unanimously approved it. Now the bill will pass to the Senate, but in order to become effective, it must pass through three more proceedings.
Paper and machinery are some of the goods that nicaraguan businessmen plan to import in large amounts with the upcoming elimination of the "patriotic" tax of 35% on colombian products.
The decision by Ortega government toabolish the 35% tax on imports of Colombian products, which has been in place since 1999, has been welcomed by the Nicaraguan private sector, which plans to increase imports of products such as machinery, paper and raw materials. The upcoming elimination of the tax, which must be approved by the Assembly, opens the door to new business opportunities between the two countries.
The Ortega administration has introduced a bill to repeal the "patriotic tax" of 35% levied on imports of Colombian products since 1999.
For years the private sector has requested removal of the 35% tax charged on imports of Colombian products since December 1999, established by the Alemán administration as a measure of retaliation because of a dispute over territorial boundaries.
The attendance of the president of the rebellious Chinese island to the inauguration of President Ortega and visits to the countries of northern Central America could have profound geopolitical significance.
EDITORIAL
It is not only the importance of Taiwan for Central Americans in terms of trade and financial assistance to governments in the area.The visit of President Tsai Ing-wen could be related to the turmoil of the global political status quo that will surely arise with the new US government
The Ortega administration intends to build 119,000 homes within 5 years, 70 thousand of which will be built by the state and the rest by private companies.
The recentincrease from $20 thousand to $23 thousand in the ceiling of the price of social housingconstitutes an incentive for the private construction sector, since it is expected that better conditions for access to financing will encourage an increase in demand. In this context, the government has announced plans to increase the housing supply in the country by 119,000 units.
According to Fitch Ratings the reelection of Daniel Ortega as president of Nicaragua means stability in the country's economic policies.
EDITORIAL
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.
EDITORIAL
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%.