Through presidential agreement number 44-2023, published in The Official GazetteDaniel Ortega authorized the Vice Minister of Finance and Public Credit of Nicaragua to sign a new disbursement of loan contract 2272 with the Central American Bank for Economic Integration (CABEI) -as Lender, Agent and Arranger- of 96 million 110 thousand 651 Dollars.
This new disbursement is part of tranche B of loan contract 2272, where CABEI is financing 66 million 556 thousand 330 and 54 cents, while 29 million 554 thousand 320 and 84 dollars is co-financed by UK Export Finance (UKEF) of the United Kingdom.
In article one of the agreement, the executive orders that “acting in the name and representation of the Government of the Republic of Nicaragua, subscribe with the Central American Bank for Economic Integration (CABEI) as Lender, Agent and Arranger, the Amendment of the Agreement of Loan No. 2272 Tranche B (…) signed on October 5, 2021, between the Republic of Nicaragua, represented by the Ministry of Finance and Public Credit (MHCP), the Central American Bank for Economic Integration (CABEI) and the UK Export Finance (UKEF, for its acronym in English) of the United Kingdom, and other Financial Institutions, for a total amount of ninety-six million one hundred ten thousand six hundred fifty-one dollars and thirty-eight cents (US$96,110.651.38); currency of the United States of America.
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Likewise, it indicates that this disbursement will be used to co-finance the “Project to Strengthen the Attention Capacity in the Hospital Service Network in Prioritized Health Units”, which will be executed and supervised by the Ministry of Health (Minsa).
It also refers that the certification of this agreement will accredit the representation of the vice minister in the signing of the loan contract and “whose terms and conditions have been previously agreed between the Ministry of Finance and Public Credit (MHCP) and the Central American Bank for Economic Integration (CABEI). ) as Lender, Agent and Arranger”, however, it does not indicate which were the agreements signed.
This agreement authorized by Daniel Ortega —on April 25, 2023— will take effect as of its publication in La Gaceta, the official newspaper.
On the other hand, CABEI had already disbursed to the Ortega administration the amount of 18 million 475 thousand 261 with 66 cents, which is part of contract 2272, of tranche A of the financing.
CABEI is the main “sponsor” of the dictatorship of Daniel Ortega and Rosario Murillo. In recent years, the financing of this regional entity went from representing 21.39% of the Public Investment Program (PIP) in 2017 to 39.14% in 2022. In total, they have disbursed 3.5 billion dollars in five years for Nicaragua.
According to the agreements, these funds will be used in infrastructure projects, but the lack of transparency of the dictatorship casts doubt on the implementation of this money.
On March 17, the Foreign Relations committees of the United States Senate and Congress have requested the presidents of El Salvador, Guatemala, Honduras and Costa Rica to stop the financing that CABEI grants to the Nicaraguan regime of Daniel Ortega.
The North American officials indicated that the transparency and scrutiny of the bank’s loans to the Government of Nicaragua should be “increased.”
“Given the crimes against humanity perpetrated by the Ortega-Murillo regime, we urge your country to take advantage of your leadership as a founding member of CABEI to guarantee that the bank’s loans do not perpetuate the consolidation of the Nicaraguan dictatorship,” the statement reads. letter sent to the presidents of Central America.
