Companies React to the Crisis

One of the decisions taken by Guatemalan businessmen with interests in Nicaragua is to suspend new investments until the situation in the country is normalized.

Wednesday, July 25, 2018

Due to the social and political situation that the country has been experiencing for more than three months, Guatemalan investors that operate companies in Nicaragua have been analyzing the situation closely, and are already taking measures to minimize the impact of the crisis on businesses. One of the decisions that some companies have taken is to reduce the cost of the operation to the lowest possible level, in order to maintain or reduce product inventories.

See "Serious damage to the economy"

Another measure is not to make new any investments or reinvestments until the situation is clarified for the future, or at least as long as there are no signs of stability. The last and the most extreme is to close down operations and sell the business to other entrepreneurs.

Juan Carlos Tefel, president of the Chamber of Industry of Guatemala, told Prensalibre.com that " ... Guatemalan companies are reducing their operations to a minimum, in response to the crisis.".. 'In the tourism sector we know that there are firms that have decided to leave, and in the case of industry they are still operating because they are not in the places where the conflicts are occuring.'"

See also "Crisis in Nicaragua: More Bank Branches Closing"

"... Alejandro Ceballos, president of the Apparel and Textile Committee, explained that the majority of Korean companies decided to change their production centers to Guatemala, El Salvador and Honduras, and they are sending the products that are manufactured in the country for that sector to those factories."

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