Venezuelan economic aid to Nicaragua down 10.9% first half 2016

The president of Venezuela, Nicolas Maduro (left) and Daniel Ortega (right) of Nicaragua
The president of Venezuela, Nicolas Maduro (left) and Daniel Ortega (right) of Nicaragua

(Today Nicaragua) Venezuela’s oil loan-centered cooperation with its traditional ally Nicaragua fell by 10.9% during the first half of 2016 as compared to the same period last year, reported Monday the Central Bank of Nicaragua (BCN).

Such drop followed a 43.8% decrease in 2015 from 2014, when Venezuelan cooperation hit USD 661.9 million, according to official numbers, Efe informed.

- payin the bills -

Funding totalled USD 172.1 million, below USD 193.3 million during the first half of 2015.

Venezuelan cooperation funds, which amount to USD 4.65 billion since Nicaraguan President running for re-election Daniel Ortega took office in January 2007, are administered on the sidelines of the law on domestic budget, a move deplored by several sectors.

Venezuelan aid during the first half of this year included oil loans (USD 108.3 million) and direct foreign investment (USD 63.8 million), the Central Bank of Venezuela (BCV) broke down in a communiqué on foreign official cooperation.

Within the framework of oil cooperation agreement, loans still derive from a policy on concessionary lending with a 25-year deadline, including a two-year’s grace period, and a 2% annual interest rate. These loans are to be paid by the private sector through investments in socio-productive projects, the BCV spelled out.

- paying the bills -

In words of the Nicaraguan state, Venezuelan cooperation has been used this year, among others, to fund energy subsidy (USD 25.7 million), financial outlay (USD 5.6 million), industry (USD 5.2 million), fair trade development (USD 4.7 million), business development (USD 3.7 million), farming production and forestry (USD 3.6 million), and housing (USD 2.3 million).

Venezuelan cooperation is channelled through joint oil venture Alba of Nicaragua (Albanisa), responsible for oil supply.

Ortega is the main political and economic ally in Central America of President Nicolás Maduro and of late Head of State Hugo Chávez.

Source El Universal

Related Articles

Remittances grow despite the coronavirus pandemic

“Everybody sends money to family members for their daily subsistence and...

4 killed, 48,000 evacuated as Hurricane Iota Tears Across Nicaragua

TODAY NICARAGUA - The damage from Hurricane Iota in Nicaragua is...

MOST READ

Rosario Murillo: La Heredera (The Heiress)

Rosarion Murillo, the "eternally loyal" to her husband and political partner, Daniel Ortega. In a profile by Confidencial in October 2016, before her election as...

Better Air Connectivity Between Nicaragua and the US

The private companies' association is in talks with United Airlines to promote the opening of a route that connects Nicaragua with the east coast...

Nicaragua Unveils Central America’s Largest Baseball Stadium

Nicaragua has unveiled its long-awaited baseball stadium in Managua, replacing the former baseball field built in 1948. The new structure will hold up to...

Bianca Jagger Gets Into The Nicaragua Act Again

(American Thinker)  Remember Bianca Jagger? You know, the disco queen and former rock-star's wife turned leftwing "human rights activist" who was last seen mourning...

What Are Some of Nicaragua’s Popular Food?

TODAY NICARAGUA - Nicaragua is an interesting place, with a tumultuous history and a relatively peaceful present. and even if many things can be...

Nicaragua Praised by the IMF

The IMF noted the positive evolution of all the country's economic indicators, and the drastic fall in poverty, with an increase of 33% in...

Poll Shows Declining Expectations on a Nicaraguan Canal

According to the results of the most recent survey conducted by Cid Gallup, the Nicaraguan interoceanic canal project, a concession given to the Chinese...

Let's Keep This Going!

To be updated with all the latest news and information about Nicaragua and Latin America.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.