The group of Sandinista deputies, together with the collaborators in the National Assembly, expressly approved this Thursday, October 27, the Law creating the Secretariat for the promotion of investments and exports. Said law was sent urgently by the dictator Daniel Ortega and 84 parliamentarians unofficially voted in favor of the new legal norm that seeks to evade the sanctions imposed by the Treasury. against the General Directorate of Mines (DGM) that affects Nicaraguan gold shipments to the international market.
The fundamental objective of the Secretariat created by Ortega is “to strengthen the state organic structure, which contributes to the promotion, support and growth of private investment and commercial exchange, seeking efficient coordination between the different instances of the State of Nicaragua and the sector national and international private Also, the promotion of a “climate favorable to investment and foreign trade” in coordination with the other instances of the public and private sectors.
The political analyst and former Liberal deputy, Eliseo Núñez, considers that the key to this new entity lies in the fact that it gives it the power to sign any type of commercial agreement with local investors and to give legitimacy to the role that Laureano Ortega Murillo has taken on the issue of investments and now they extend it to exports.
«In a market like the gold market, they could not continue operating with the story that I am the son of the boss. They need something more formal. In addition, this is how Álvaro Baltodano (Presidential Delegate for Investments of ProNicaragua) is fired (fired), “said Núñez.
Juan Diego Barberena, member of the Political Council of the Blue and White National Unity (Unab), pointed out that this is an old practice of the Ortega Murillo regime in its attempt to evade US sanctions; But the effect of the Treasury’s restrictions on the mining industry has already had “devastating effects” on companies operating in Nicaragua, such as the loss of up to 40% of the value of their shares on the stock market. “Eventually the companies will have to sell their shares for a much lower price and another difficulty will be finding buyers due to the legal insecurity that exists in Nicaragua,” he predicted.
Related news: Ortega creates “Investment and Export Secretariat” to evade US sanctions
Barberena explained that, although a Secretariat for exports and investments is created, the main element is that the sanctions of the United States are also aimed, not only at those who benefit from this type of commercial relations, but also sanctions companies.
“Although this legal maneuver by the dictatorship is to evade sanctions, the damage has already been done. The issue is not only being able to export to avoid sanctions; but the commercial relations will be affected to be able to carry out the transactions », he stressed.
Secretariat would be directed by Laureano Ortega
This new government entity will be attached to the Presidency of the Republic to replace the Presidential Delegation for the promotion of investments, exports and facilitation of foreign trade and the Agency for the Promotion of Investments and Exports (PRONicaragua); which was directed by Laureano Ortega, son of the dictatorial couple.
Among its functions is to propose to the dictator the implementation of measures to improve Nicaragua’s position as an investment destination and facilitate the growth of exports, formulate proposals to improve the investment climate in the country, among others. The bill could be approved in the next few days.
In the last decade, gold has established itself as Nicaragua’s main export product, even displacing traditional products such as beef and coffee. Gold shipments in 2021 amounted to 880.5 million dollars, according to statistics from the Center for Export Procedures (Cetrex).
From January to September 2022, 708.7 million dollars have been exported and the year could close in the order of 955.9 million dollars. According to the United States Department of the Treasury, “Ortega and his cronies continue to use the profits derived from the production and sale of gold to line their own pockets and pay those who keep the regime in power.”
The United States remains Nicaragua’s largest trading partner with almost $5 billion in bilateral trade between January and July 2022 alone. The North American country accounts for more than 60% of Nicaragua’s exports and 35% of its imports.
With the collaboration of journalist Noel Miranda.
