(posted July 25, 11:10 a.m.)- The US government this morning announced that it has renewed Nicaragua’s property waiver until July, 2013, according to a press release issued at 10:45 a.m. by the U.S. Embassy.
The government release said the waiver has been granted “based on the national interest of the United States and due to the efforts by the Government of Nicaragua to offer a solution to the property claims of US citizens.”
In the past year, Nicaragua has resolved 65 property cases of 31 US citizens, the Embassy said. There are 337 pending cases, the Embassy added. The approval of next year’s waiver will depend on the continued resolution of pending cases, the release says.
The Embassy statement also notes that the US government has expressed its concern about the “increasing number” of “transgressions to the private property rights of US citizens.”
“The increase of new cases of land invasions and other forms of usurpation of property is worrisome and demonstrates the deteriorating rule of law in Nicaragua, which continues to be a significant obstacle for investment and the development of the country,” the US Embassy said. “The Government of the United States hopes to obtain a resolution to the pending property cases of US citizens. In the same manner, [the US] hopes that [Nicaragua] will give due attention to the current property problems.”
The cancelation of the property waiver would have jeopardized $1.4 billion in approved development loans over the next five years. The extension of the waiver, however, means that the US will ostensibly continue to support Nicaragua—or at least not lobby against Nicaragua—in international financial institutions.