The funds will be used in the projects that were going to be financed by the withdrawn resources of the U.S. Millennium Challenge Fund.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.
These CRM funds had been designated for the construction of a highway project and a property regulation project.
The board of directors of the Millennium Challenge Fund (CRM) unanimously resolved to reduce the aid to Nicaragua by $64 million (of a total of $175 million). These funds had been frozen since November 2008 after questioning involving municipal commissions.
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.