After the Nicaraguan Assembly approved a bill that forces local banks to allow public officials sanctioned by OFAC to have an account, there are fears that the country will be isolated from the international financial system.
A statement issued by the National Assembly on February 3 explains that the deputies approved the Law Initiative of Reform and Addition to the Law for the Protection of the Rights of Consumers and Users, a legislative project which guarantees a better and greater protection of the rights of consumers and users in the access to goods and services as a human right recognized by the Nicaraguan State.
Over two years have passed since criminal groups invaded productive land in Nicaragua, and although there have been promises to restore the rights of the owners, up to date 29 properties remain taken.
In the context of the political and social crisis that erupted in the country in 2018, at the end of June of that year it was reported that at least ten private properties in Rivas, Matagalpa, Chinandega and Managua had been taken over by criminals.
In a context of health emergencies and falling oil prices, Nicaraguan businessmen are asking the government to take advantage of market conditions and reduce electricity rates by 15 to 20%.
For the Superior Council of Private Enterprise (Cosep), the advantage of buying and storing oil derivatives for electricity generation as soon as possible should be evaluated, and thus taking advantage of the historical lows in the prices of these products.
The business sector in Nicaragua reported that private hospitals asked to be authorized to perform the tests that can determine if a person is a virus carrier, but so far they have not received a response.
Representatives of the Consejo Superior de la Empresa Privada (COSEP) explained that the Ministry of Health (Minsa) tests are done manually and private laboratories perform them automatically.
After the first case of covid-19 was reported in the country, the private sector is asking authorities to close the borders partially or completely and to have people entering the nation examined and quarantined if necessary.
Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), explained that among the measures taken by the companies for this emergency is the creation of a critical department so that the companies that the staff is working in three different places in case any of them is affected, have guns to measure the temperature of customers who come to the company and not allow them to enter with fever.
The business sector in Nicaragua believes that the bill under discussion in the Assembly, which empowers the government to fine agricultural producers if they fail to comply with approved phytosanitary standards, has excessive discretion.
A few days ago, a bill called the "Plant Protection Law" was submitted to the National Assembly. This is a legal framework that empowers the Institute of Protection and Health (IPSA) to impose sanctions ranging from $100 to $700 on any producer that does not comply with the requirements at the time the government carries out an inspection.
With regard to the discussion of an initiative which aims to modify the Trademark Law in Nicaragua, the business sector believes that relevant changes are being considered in the area of legal security, as far as the protection of trade names is concerned.
Regarding the subject, the National Assembly reported that on February 27, "... the consultation process for the initiatives to reform the TrademarkLaw and the Patent Law was successfully concluded, with the participation of economic and academic agents directly linked to the subject, who provided important contributions."
The private sector believes that Ortega's creation of new state-owned companies to exploit oil and import and market gas and fuel will generate dumping in the country.
In Nicaragua, the authorities have not published information on the Monthly Index of Economic Activity since February 2019, when the year-on-year fall was 7.5%, a situation that prevents businessmen from making decisions based on the real situation of the economy.
In the country, the business sector expects an increase in operating costs in the coming months, as a result of the expected increase in the price of electricity in the short term.
With the aim of signing agreements on economic and trade issues, Nicaraguan authorities visited Iran, but for Nicaraguan businessmen there is no possibility of "developing markets with that country.”
Ortega's regime seeks to strengthen its relations with Iran, since it recently sent to the National Assembly for approval, the "Agreement for the Reciprocal Promotion and Protection of Investments between Nicaragua and the Islamic Republic of Iran."
In Nicaragua, there is uncertainty because the government is reviewing the tax reform without the participation of businessmen, and because adjustments to the minimum wage could be made in September.
Weeks ago, it was reported that when the government's review of the tax reform in force in the country since February is completed, businessmen consider that no tax cuts will be made, despite the fact that production costs in the country have risen considerably.
In the government's review of Nicaragua's tax reform that has been in place since February, businessmen consider that no tax cuts will be made, even though production costs in the country have risen considerably.
After the approval on February 27, 2019 of the amendment to the Tax Concertation Law, which consists of raising from 1% to 2% the income tax for medium sized companies with higher income, and for large taxpayers from 1% to 3%, the productive sector has reported increases in its production costs.
Businessmen in the industrial sector in Nicaragua say that since the tax reform was implemented in the first quarter of the year, employment has fallen between 30% and 35%.
On February 27, 2019 was approved the amendment to the Law of Tax Concertation, which consists of raising from 1% to 2% income tax for medium enterprises with higher income. Another of the measures contemplated by the reform is to raise the income tax of large taxpayers from 1% to 3%.
Businessmen in Nicaragua estimate that this year the sales of houses will not exceed one thousand units throughout the country, which is explained by the economic situation that the country has been living for fourteen months now.
Although in April 2018 the political and social crisis broke out in the country, builders managed to sell 3,108 homes last year, but the figure was 34% lower than the 4,738 homes sold in 2017.
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