United States freezes aid to Nicaragua

©image: Alex Steffler

Warnings were given. The US ambassador, Robert Callahan, had warned that they would review the level of economic cooperation for Nicaragua due to the claims of fraud in the recent municipal elections.

The Millennium Challenge Account is a 5 year program base on a 175 million dollar donation from the government and people of the United States.

It is divided into three components: the development of rural businesses; road infrastructure and the strengthening of property rights.

Source: elnuevodiario.com.ni

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United States Cuts $64 Million in Aid to Nicaragua

June 2009

These CRM funds had been designated for the construction of a highway project and a property regulation project.

The board of directors of the Millennium Challenge Fund (CRM) unanimously resolved to reduce the aid to Nicaragua by $64 million (of a total of $175 million). These funds had been frozen since November 2008 after questioning involving municipal commissions.

Holland suspends cooperation with Nicaragua

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Holland announced that it will not pay the 12 million euros of aid to the Nicaragua government scheduled for 2008 and 2009 due to the contested municipal election held on November 9.

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The EU also freezes funds to Nicaragua

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The EU has joined the the stance adopted by the US regarding the Millennium Account, and announced that it will not turn over some $37 million to Nicaragua.

This is due to the criticism of the recent electoral process and complains about "the offenses" committed by President Daniel Ortega against contributors.

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At the request of the government, the BCIE approved the loan for which the country will provide the equivalent for the construction of two roads, in addition to the Millennium Challenge Account.

The first of the two highways will join La Paz Centro in Malpaisillo with Villa 15 de Julio, to form an alternate route to El Guasuale; the second road is from Nejapa, Izapa to Puerto Sandino.