Act 741, which concerns trust agreements was approved by the Assembly on November 4, 2010, and published in the Official Gazette on January 19, 2011.
Gisella Canales’ article on Laprensa.com.ni reported that the international firm KPMG, which provides audit, tax and advisory services, "initiated a series of studies on the use of trusts in Nicaragua, in order to promote the use of this legal model as an instrument to generate business."
"In the opinion of Victor Perez of KPMG Mexico, ‘Nicaragua has just taken an important step’ with the approval of this law, as this country’s trusts have allowed secure and transparent investment and business, particularly in infrastructure projects. "
"Jony Afu Batista, of KPMG Panama, said that his country’s trusts are used in the stock market and even to guarantee the payment of severance pay for workers, examples Nicaragua could follow."
Source: laprensa.com.ni
More on this topic
August 2011
As at 30 June, private trusts managed by banks increased by 9.41% compared to the same period in 2010.
Data from the Superintendency of Banks also indicated that trusts related to the state fell by 11.65% and those owned by municipalities increased by 155.4%.
The total amount managed by banking institutions as of June 30 this year was $990 million.
November 2010
The new law will regulate Trusts, which did not exist before in Nicaragua.
According to Walmaro Gutierrez, head of the Parliament´s Economic Affairs Committee, the Trust will boost the construction sector and provide wealth management and an investment pipeline, among other things.
November 2011
This fund will cover the additional costs of buying electricity that the Esti hydroelectric plant is unable to produce.
The damage to the Esti hydroelectric dam, which is due to be operational again in May 2012, has forced Empresa de Transmisión Eléctrica S.A to sign a trust agreement for $315 million with the Ministry of Economy and Finance (MEF).
September 2011
Greater knowledge of these financial tools is driving their use in the country.
Equity and Guarantee Trust funds are the most popular of these types of instruments in Costa Rica, where more and more companies and individuals are choosing to manage their properties using this alternative.
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