Costa Rica Coffee Guide

U.S. Freezes $64M In Aid to Nicaragua

November 28, 2008

MANAGUA, Nicaragua – Citing “deep concern” over Nicaragua’s democratic process, the U.S. Millennium Challenge Corporation (MCC) announced Tuesday that it is freezing $64 million in aid.

The announcement came a day after U.S. Rep. Howard L. Berman, chairman of the House Foreign Affairs Committee, urged the MCC to suspend its $175 million program in Nicaragua due to concerns over the decline of democracy here.

The U.S. developmentalaid organization announced that it is suspending all disbursements for new projects not under contract.

Ambassador John Danilovich, CEO of MCC, expressed “deep concern and disappointment” Tuesday over the Nov. 9 municipal elections in Nicaragua, which have been riddled with allegations of fraud, and he ordered MCC to reevaluate its compact with Nicaragua.

Sarah Stevenson, MCC spokeswoman  in Washington, D.C., told The Nica Times that the MCC has already contracted $111 million of the $175 million it committed to Nicaragua. That means an outstanding $64 million has been frozen.

Stevenson said most current projects and employees of the MCC in Nicaragua will not be affected, but the organization will not be disbursing funds for any new projects. However, the N1 highway under construction from Managua to León could suffer.

César Zamora, president of the NicaraguanAmerican Chamber of Commerce (AMCHAM), told The Nica Times on Monday that a suspension of MCC funding for Nicaragua would be a “nuclear bomb for the economy.”

–Tim Rogers

 

You may be interested

Costa Rica previews new tower at Calderón Guardia Hospital
Costa Rica
7547 views
Costa Rica
7547 views

Costa Rica previews new tower at Calderón Guardia Hospital

Alejandro Zúñiga - July 9, 2020

Costa Rican authorities on Thursday previewed a new tower at Calderón Guardia Hospital in San José, which could be used…

News briefs: Costa Rica will handle land borders differently than airports
Costa Rica
4727 views
Costa Rica
4727 views

News briefs: Costa Rica will handle land borders differently than airports

Alejandro Zúñiga - July 9, 2020

The coronavirus crisis has transformed life in Costa Rica, which has enacted measures to protect the capacity of its health…

Costa Rica extends tourist visas until November 18
Costa Rica
3014 views
Costa Rica
3014 views

Costa Rica extends tourist visas until November 18

Alejandro Zúñiga - July 8, 2020

Costa Rica's Immigration Administration is offering foreigners extra flexibility as countries continue to restrict travel due to the coronavirus pandemic.…