Embassy_Report-NicaBeachfront

The following are abstracts from the ..

Comprehensive trade and investment information for doing business in Nicaragua;
A service of the United States Department of State

NICARAGUAN POLITICAL ENVIRONMENT

NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES

Bilateral relations between the United States and Nicaragua are strong. Since 1990, the U.S. has provided more than 1 billion dollars in assistance and debt-relief to Nicaragua. That money has funded such projects as balance of payments support for economic stabilization, primary education, health care reform, employment generation, food donations, and the strengthening of democratic institutions. The U.S. remains Nicaragua’s largest trading partner.

CHAPTER VII.
INVESTMENT CLIMATE

Openness to foreign investment

Since 1991, Nicaragua has made significant progress in opening to foreign investment. President Arnoldo Aleman, who took office in January 1997, has shown a personal interest in welcoming new foreign investment and the Government has a decidedly pro-foreign investment attitude.

The Foreign Investment Law guarantees foreign investors the right to remit 100 percent of profits through the official exchange market and, 3 years after the initial investment, repatriation of original capital. The law also allows 100 percent foreign ownership in all sectors of the economy. To enjoy those guarantees, investments must be approved by the Foreign Investment Committee of the Ministry of Economy and Development. However, most foreign investors do not seek Ministry approval because the banks freely repatriate profits. Recently, Ministry approvals have taken over a year. The embassy knows of no instances in which profit repatriation has been a problem. Foreign investors receive national treatment with respect to export/import policies. There are no onerous visa, residence, or work permit requirements which inhibit foreign investment.

RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
Both foreign and domestic private entities may establish and own business enterprises and profit-making activities. Local law grants the right to freely establish, acquire, and dispose of virtually any type of business interest or property, with the exception of those sectors where government monopoly is established by law. The Embassy is aware of no instances where private enterprises were not treated on an equal footing with public enterprises with respect to access to markets, credit, and other business operations.

Political violence

Political violence in Nicaragua has decreased sharply in recent years. We are aware of no recent instances of political violence directly targeted at foreign business operations.