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Taiwan to the rescue of “socialist” Ortega with a 20-year US$ 100 million loan

Thursday, February 21st 2019 - 08:34 UTC
Full article 2 comments
Ex guerrilla leader Ortega's rule was challenged by the protests against a social security reform last year. More than 320 people died in the crackdown Ex guerrilla leader Ortega's rule was challenged by the protests against a social security reform last year. More than 320 people died in the crackdown
Lawmakers approved the 20-year loan a day after US President Donald Trump declared that “socialism is dying” in Nicaragua, Cuba and Venezuela Lawmakers approved the 20-year loan a day after US President Donald Trump declared that “socialism is dying” in Nicaragua, Cuba and Venezuela

Nicaragua's Congress on Tuesday accepted a US$ 100 million loan offered by Taiwan, giving a line of support to President Daniel Ortega's government, which has become increasingly isolated after a brutal crackdown on protesters last year.

Lawmakers approved the 20-year loan a day after US President Donald Trump declared that “socialism is dying” in Nicaragua, Cuba and Venezuela. The United States enacted a law late last year making it harder for Nicaragua to access multilateral loans.

The Bill approved by lawmakers from the ruling Sandinista party said the funds were destined to support the country's budget priorities this year. Nicaragua is one of a shrinking number of countries in Central America that still offer US-ally Taiwan diplomatic support over China, which considers Taiwan a renegade province.

Former guerrilla leader Ortega's rule was challenged by the protests against a social security reform last year. More than 320 people died in a crackdown that suppressed the protests but led to deep rifts with the private sector and Washington.

The United States has imposed sanctions on officials close to Ortega, including his wife, Vice-President Rosario Murillo.

The Netherlands and Luxembourg last year suspended aid funding to Nicaragua, citing repression during the protests.

In the 2019 budget, Nicaragua's congress forecast a budget deficit of US$320 million, up from US$170 million in December 2018.

Top Comments

Disclaimer & comment rules
  • DemonTree

    Nicaragua may as well get some benefit from recognising the ROC. I always wondered how Mercosur what going to do a trade deal with China when Paraguay still doesn't recognise them as the legitimate government.

    Feb 21st, 2019 - 07:10 pm 0
  • Jack Bauer

    And what guarantees does Taiwan have they'll ever get paid ? smells like another VZ, on a smaller scale, in the making...
    The fact Mercosul countries don't officially recognize Taiwan (ROC) as the legitimate government (of both Chinas - due to pressure from PRC) has no bearing on trading with them.

    Feb 25th, 2019 - 02:28 am 0
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