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U.S. Department of State
Nicaragua Country Commercial Guide
Office of the Coordinator for Business Affairs
FY96 COMMERICAL GUIDE
This Country Commercial Guide (CCG) presents a comprehensive look at
Nicaragua's commercial environment through economic, political and
market analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annualy at U.S. Embassies through
the combined efforts of several U.S. government agencies.
SECTION I.
EXECUTIVE SUMMARY
--OVERVIEW OF IMPORT MARKET
Nicaragua remains an essentially agricultural country, and hence is
dependent upon imports for provision of many manufactured, processed,
and consumer items. High levels of imports over the past 15 years
($600-$850 million annually) were made possible largely by high levels
of foreign assistance -- from the Eastern bloc during the 1980's and
from U.S., European, and Asian donors, and the International Financial
Institutions since 1990. With the election of President Chamorro in
1990, the foreign trade regime was significantly liberalized, and
consumer imports surged due to pent-up demand. While that demand has
cooled somewhat in 1995, Nicaragua remains a strong market for many
types of U.S. products. In 1994, Nicaragua imported $185 million of
U.S. goods, particularly agricultural products, machinery, and consumer
items, while U.S. market share increased from 20.6 to 24.1 percent.
--BRIEF SYNOPSIS OF COMMERCIAL ENVIRONMENT
The Nicaraguan retail market is relatively small, with no truly large-
scale department stores or other retail operations. We recommend that
U.S. companies market their goods via a local agent or distributor;
potential investors should consider taking on a Nicaraguan partner.
--NICARAGUAN BUSINESS ATTITUDE TOWARDS THE U.S.
President Chamorro and the top levels of the Nicaraguan government
maintain a pro-foreign investment policy. U.S. goods are sought after
by Nicaraguan consumers, who view the products as high quality. Many
Nicaraguans have traveled to the U.S.; several hundred thousand moved to
the U.S. during the Sandinista era. Consequently, the Nicaraguan market
maintains a decided bias in favor of American products and lifestyle.
--MAJOR BUSINESS OPPORTUNITIES
Best prospects for U.S. sales include agricultural commodities,
fertilizer, electrical equipment, franchising, agricultural machinery,
food processing and packaging machinery, construction equipment, U.S.
automobiles and spare parts, and telecommunications equipment.
Investment opportunities exist in the fisheries, mining, timber, and
non-traditional agricultural goods sectors. Several large
infrastructure projects are under way, funded primarily by international
financial institutions, in the areas of electrical generation,
roadbuilding, and water system construction.
--MAJOR ROADBLOCKS TO DOING BUSINESS
We would enumerate the major roadblocks as follows:
--The continuing slow resolution of claims on properties
confiscated during the Sandinista era (including some 1500 U.S. citizen
properties) blunts interest in foreign investment.
--Import tariffs and taxes are high on many items and often not
assessed on CIF/bill of lading value, but on a reference price
determined by Customs officials, at times much higher than the actual
price paid by importers.
--Nicaragua's intellectual property rights regime is outmoded.
--Quality certification procedures for the importation of
pharmaceuticals, while eased in recent months, can be burdensome.
--Port and highway infrastructure is substandard.
--Resolution of commercial and investment disputes in Nicaragua is
unpredictable. The legal system is cumbersome, and the enforcement of
judicial determinations is uncertain and often subject to political
considerations.
--As of this writing, a conflict between the Executive and
Legislative Branches over a series of reforms to the Constitution
remains unresolved, generating uncertainty over the nation's legal
framework, impeding work on other legislation of importance, and
dampening investor confidence.
--NATURE OF LOCAL AND THIRD COUNTRY COMPETITION
Since 1990, the makeup of Nicaragua's major trading partners has shifted
dramatically away from dominance by the Eastern Bloc and Cuba to growing
relationships with U.S., Western European, and Asian suppliers.
Nicaragua's industrial sector is small, so local competition for
processed and manufactured products is non-existent for many products.
Nicaragua's Central American neighbors and Mexico are important
competitors in the processed/canned food sector. Strong third country
competition exists for rice (Vietnam) and cooking oils (Argentina).
Japanese, Taiwanese, Korean, and Western European presence in the
equipment and machinery markets (e.g., telecommunications equipment,
computers, automobiles, construction and agricultural machinery) is
notable. However, the U.S. share of the overall Nicaraguan import
market has grown from virtually nil during the 1980's to 24.1 percent in
1994. We expect that number to expand steadily over the medium term.
Country Commercial Guides are available on the National Trade Data Bank
on CD-ROM or through the INTERNET. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate Country Commercial Guides via
the INTERNET, please use the following world-wide web address:
WWW.STAT-USA.GOV. CCGs can also be ordered in hard copy or on
diskette from the National Technical Information Service (NTIS) at 1-
800-553-NTIS.
SECTION II.
ECONOMIC TRENDS AND OUTLOOK
--MAJOR TRENDS AND OUTLOOK
During the period 1990-93, the Government of Nicaragua's economic policy
focused on making a successful transition from a centralized to a
market-oriented economy. The Chamorro administration was also tasked
with reversing the severe mismanagement of the economy of the Sandinista
era and the resultant 25 percent drop in real GDP and 50 percent drop in
GDP per capita during the 1980's.
The main emphasis during this period was upon stabilization of the
currency -- the córdoba oro -- and implementation of basic structural
adjustment measures. The stabilization process has been remarkably
successful. Annual inflation fell from 13,490 percent in 1990 to 775
percent in 1991, 3.5 percent in 1992, 20.4 percent in 1993, and 12.4
percent in 1994. The cordoba oro remains stable and is presently
devalued against the dollar on a crawling peg at the rate of 1 percent
per month. During 1994, the average spread between the official
cordoba/dollar rate and the legal parallel and black market rates was
2.6 percent.
With respect to structural adjustment measures, the Chamorro
Administration has successfully privatized more than 325 of the 350 non-
financial public sector companies it inherited from the previous
administration. A Superintendency was created to supervise the banking
sector, which now includes eleven private banks and three state-owned
institutions. The Government has reduced tariffs, eliminated most non-
tariff trade barriers, and greatly relaxed foreign exchange controls.
In 1994 these measures came to fruition as the Government registered GDP
growth of 3.2 percent, the first significant growth in a decade.
Nevertheless, GDP per capita remained at an estimated $414, the lowest
in Central America, and one of the lowest in the hemisphere.
Continued economic improvement is anticipated for the period 1995-97 as
Nicaraguan enters the second year of a 3-year IMF reform program.
Exports are expected to continue to climb due to high coffee prices and
the strong performance of non-traditional agricultural exports. The IMF
now estimates growth rates of 4.0 percent in 1995, 4.5 percent in 1996,
and 4.5 percent in 1997.
--PRINCIPAL GROWTH SECTORS
Agriculture, livestock, fisheries, mining, and telecommunications are
the principal growth sectors for the short term. Manufacturing and
commercial activity are expected to remain relatively stagnant.
Agriculture: Agricultural production accounts for approximately 23
percent of Nicaragua's GDP. According to official estimates, production
increased 16 percent in the 1994/95 cycle (May 1 - April 30) over the
1993/94 cycle. Reasons for the growth included a more than 100 percent
rise in non-traditional agricultural exports (to $61.5 million) and a
sharp increase in world coffee prices.
Livestock: Beef production increased 2.6 percent in 1994, and exports
were up 11 percent in value. Three slaughterhouses in Nicaragua are
authorized by the USDA to export to the U.S. Nicaragua's low
population density and ample grazing land offer great potential for
continued expansion of the livestock sector.
Fisheries: The fisheries sector grew by 35 percent in 1994, led by
shrimp exports which increased from 3.8 million pounds in 1993 to 7.1
million in 1994. Potential exists for continued growth due to extensive
coastlines on two oceans and substantial fish resources. Aquaculture
production has also increased, primarily in the Estero Real near the
Gulf of Fonseca. Thirteen companies presently export shrimp from farms
in the region.
Mining: Nicaragua was once a major producer of gold and silver, but
production fell sharply during the 1980's following nationalization of
the mines. Approximately 34,000 troy ounces of gold and 84,000 troy
ounces of silver were produced in 1994, a drop of 16 percent for gold,
but an increase of 11 percent in silver. Foreign investors have shown
great interest in Nicaragua's mines, which have been recently
privatized. In addition, several companies have sought concessions for
new exploration.
Telecommunications: A proposal for privatization of 40 percent of the
telephone operations of the state telecommunications entity (TELCOR) is
presently before the National Assembly. Actual privatization is
anticipated sometime in 1995, with five foreign companies expressing
interest in submitting a bid. Cellular telephone service, private
leased-line services, paging and trunked radio service are all presently
offered in Nicaragua by private companies under license from TELCOR.
--GOVERNMENT ROLE IN THE ECONOMY
In 1990 the Chamorro Administration inherited a centralized economy
dominated by state enterprises. Since then, all state monopolies except
for public utilities and insurance have been eliminated, virtually all
price controls have been phased out, and more than 325 of 350 state
enterprises have been privatized. The Government's role in
international trade and exchange controls has also been vastly reduced.
As a result, the percentage of GDP generated by state enterprises has
declined from 30 percent in 1990 to less than 10 percent today.
Nonetheless, doing business in Nicaragua can still mean becoming
involved in interagency bureaucratic conflicts. Many investors complain
that commitments by one agency or branch of government are sometimes not
honored by another.
--BALANCE OF PAYMENTS SITUATION
Nicaragua suffers from a chronic severe external accounts deficit which
has been narrowed slightly as a result of the Government's structural
adjustment measures. Nonetheless, Nicaragua remains highly dependent
upon donor assistance to balance its accounts. This dependence will
continue for the foreseeable future. The IMF estimates balance of
payments deficits of $488 million in 1995 and $348 million in 1996.
--INFRASTRUCTURE SITUATION, RE: GOODS/SERVICES DISTRIBUTION
Ports: Nicaragua has a total of six seaports, all of which are operated
by the Government-run Port Authority (ENAP). The most suitable for
commercial shipping is the Port of Corinto located on the Pacific coast,
110 miles northwest of Managua. The Port of Corinto has a capacity of
1,516,900 tons annually and is presently upgrading its facilities.
Puerto Sandino, also located on the Pacific coast, is primarily used for
the import of petroleum. The remaining Pacific port of San Juan del Sur
has limited capacity and uses barges to load and unload cargo. On the
Atlantic coast, Nicaragua has three seaports (El Bluff, El Rama, and
Puerto Cabezas). El Bluff and Puerto Cabezas are basically piers and
handle limited cargo. El Rama is a roll-on, roll-off port and is
located on the Rama River, 40 miles from the coast. Most containerized
sea cargo and fresh fruit is shipped by highway to Puerto Limon in Costa
Rica or Puerto Cortes in Honduras.
Airport: August Sandino International Airport in Managua has no
separate cargo facilities, but construction of such infrastructure is
under way.
On average, there are six scheduled all-cargo flights per week to and
from Managua, which carry trade primarily with the U.S. and Central
America. Primary cargo carriers are Fine Airlines, based in Miami, and
Nica Airlines, which leases aircraft from the U.S. company, Kalita. In
addition, most passenger airlines, including American and Continental,
maintain some cargo capacity.
Highways: There are approximately 2,750 miles of paved highways and
roads in Nicaragua, the majority located in the western part of the
country. The Pan-American Highway runs north-south through Nicaragua on
the Pacific side and carries the majority of overland cargo. There is
no all-weather east-west road. A partially unpaved secondary highway
runs from Managua to the interior port town of El Rama, from where there
is river transport to Bluefields. There are plans to upgrade this road
with the help of the World Bank. The unpaved road which winds from
Managua to the northern Atlantic Coast town of Puerto Cabezas has been
upgraded and is in adequate condition during the dry season (December-
April).
SECTION III.
POLITICAL ENVIRONMENT
--NATURE OF BILATERAL RELATIONSHIP WITH THE UNITED STATES
Bilateral relations between the U.S. and Nicaragua are strong. The USG
has been supportive of the democratically elected government (since
1990) of President Violeta Chamorro and her efforts to transform
authoritarianism to democracy, civil war to peace and reconciliation,
and a state-dominated economy to free market capitalism. Since 1990,
the U.S. has provided more than 1 billion dollars in assistance and
debt-rescheduling to Nicaragua, for such projects as balance of payments
support for economic stabilization, primary education, health care
reform, employment generation, food donations, and the strengthening of
democratic institutions.
--MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
With the help of the U.S., the international financial institutions, and
other bilateral donors, the GON has made impressive progress regarding
economic stabilization. However, there is a series of political
questions that have dampened investor enthusiasm and prospects for
strong economic growth -- the property confiscation problem, security in
the countryside and the rule of law.
At this writing, a Constitutional crisis clouds the 1995 business
outlook. A series of Constitutional reforms passed and promulgated by
the National Assembly has yet to be accepted by the Executive Branch,
resulting in confusion over which Constitution is in effect.
Civil-military relations took a significant positive step during the
past year with the passage by the National Assembly of a new military
law and the peaceful change of military leadership in February 1995.
Cooperation between the Army, Police, and local growers contributed to a
successful and peaceful 1994/95 coffee harvest, although human rights
concerns continue to cloud the military's transition to a fully
professional, civilian-controlled institution.
--BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS, AND
ORIENTATION OF MAJOR POLITICAL PARTIES
Nicaragua's government is divided into four branches: a democratically
elected president with broad executive powers, a 92-person National
Assembly, a judiciary, often characterized as politicized and
inefficient, and the Supreme Electoral Council. Presidential and
Assembly elections are scheduled for November 1996, with a new president
to take office in January 1997. The only scheduled mid-term elections
took place in February 1994 in the sparsely populated Atlantic Coast
region. The elections were deemed free and fair by foreign observers,
with the Constitutional Liberal Party (PLC -- right-of-center) and the
FSLN (the Sandinistas) garnering the greatest share of the votes.
Party politics are complex and fragmented in this nascent democracy.
There are currently 24 registered political parties. The Sandinista
party has formally split into two, consisting of the orthodox group
(FSLN) and a more moderate "Sandinista Renovation Movement" (MRS).
SECTION IV.
MARKETING U.S. PRODUCTS AND SERVICES
--DISTRIBUTION AND SALES CHANNELS
Distribution and sales of imported products are handled by local
distributors and agents. The Nicaraguan retail market is small, and
there are no truly large-scale department stores or other retail
operations.
--USE OF AGENTS/DISTRIBUTORS; FINDING A PARTNER
The rights and obligations of agents and distributors are set forth in
the Law of Agents, Representatives, and Distributors of Foreign Products
(Decree 13 of January 5, 1980). This law provides for considerable
protection of the interests of local agents and distributors;
termination of a relationshp can prove costly. Nevertheless,
partnerships among U.S. and Nicaraguan business interests are common due
to the historical nexus shared by the two countries. There is no
clearinghouse of information for finding a partner in Nicaragua. It is
recommended that U.S. companies seeking agents, distributors, or
partners in Nicaragua purchase the Agent Distributor Service (ADS) from
the nearest U.S. Department of Commerce District Office, contact the
Commercial Section of the U.S. Embassy in Managua, the Center for Export
and Investment (CEI) of the Ministry of Economy and Development, and
local business chambers. (See Appendix E for contact information.)
--FRANCHISING
In Nicaragua, there is no specific law regulating franchises.
Prospective franchisees must follow the general regulations concerning
foreign investment and starting a business contained in the Commercial
Code and Foreign Investment Law.
The franchise market for Nicaragua is promising. Pizza Hut, Hertz, and
Budget Rent-A-Car franchises, among others, operate in Nicaragua at
present. Many Nicaraguans have lived several years outside of the
country and have grown accustomed to fast food outlets and other
services appropriate for franchising.
--DIRECT MARKETING
There is little or no direct marketing in Nicaragua at the present and
no specific law or regulation governs the field. While limited
potential for direct marketing exists, an unreliable postal service,
inconsistent treatment of goods at Customs, and lack of an efficient
delivery system may create obstacles for profitable direct marketing
operations.
--JOINT VENTURES/LICENSING
All types of business organizations are governed by the Commercial Code.
The code permits joint ventures, license arrangements, general and
limited partnerships, and corporations.
Foreign investors are generally accorded national treatment under the
Commercial Code. Nonetheless, investors may wish to register under the
Foreign Investment Law.
--STEPS TO ESTABLISHING AN OFFICE
There are various ways to constitute an operation in Nicaragua; the two
most common are as a sole proprietorship or as a corporation.
The three basic steps for organizing a business are as follows:
1. Register and incorporate the business at the Ministry of Finance.
After paying the registration fees, a tax identification number must be
acquired. (Note: If incorporating, a notarized letter from the
corporation's board of directors authorizing incorporation in Nicaragua
is required.)
2. Apply for an economic license at the Ministry of Economy and
Development (MEDE).
3. Register with the office of the Mayor in the seat of government of
the Department where the business is located. At this office, the new
business may elect to pay a fixed tax quota on sales or contract an
accountant to maintain detailed records. If the accountant option is
chosen, the books must be registered with the Ministry of Finance Office
of Fiscal Records.
In addition to these steps, additional permits/licenses may be required
depending upon the business in question. We would recommend the
retention of an experienced commercial attorney for any investor
interested in establishing an operation in-country.
Benefits of the Foreign Investment Law:
Foreign investors may, but are not required to, register investments and
negotiate a Foreign Investment Agreement with the Ministry of Economy
and Development. This guarantees the investor the following privileges
under the Foreign Investment Law:
--Repatriation of net foreign capital, less any losses incurred, 3
years after the capital to be repatriated entered the country.
--Remittance abroad of the net profits generated by the capital
registered.
--Prompt, adequate, and effective compensation in case of
expropriation for reasons of public utility or social interest.
In addition to the benefits listed above, other tax benefits may be
individually negotiated depending on the type of business incorporated.
--SELLING FACTORS/TECHNIQUES
Sales and marketing techniques in Nicaragua are still largely
unsophisticated due to the lack of commercial activity during the
Sandinista years. Most advertising takes place on the radio, in
newspapers, or on billboards. Major, up-scale promotional activities
are rare. As the Nicaraguan economy has liberalized and grown, more
modern sales techniques including television advertising and direct
marketing are being employed with greater frequency.
--ADVERTISING AND TRADE PROMOTION
The majority of business advertising and trade promotion in Nicaragua is
conducted through the print media. Below are the most commonly utilized
publications:
Newspapers:
LA TRIBUNA LA PRENSA
Mansion Teodolinda 1/2 c. al sur Km. 4 Carr. Norte
Managua, Nicaragua, C.A. Managua, Nicaragua, C.A.
Tel: (505-2) 667581/4 Tel: (505-2) 490322
Fax: (505-2) 669089 Fax: (505-2) 496926
Circulation: 16,000 Circulation: 20,000
BARRICADA EL NUEVO DIARIO
Detras del Bolerama Km. 3-1/2 Carretera Norte
Managua, Nicaragua, C.A. Managua, Nicaragua, C.A.
Tel: (505-2) 674727 Tel: (505-2) 491190
Fax: (505-2) 673941 Fax: (505-2) 490700
Circulation: 12,000 Circulation: 35,000
Business Journals:
CABLE CENTROAMERICANO EL OBSERVADOR ECONOMICO
Apdo 1407 Del Hospital El Retiro
Managua, Nicaragua 2 c. al lago, Apdo 2074
Tel: (505-2) 668075 Managua, Nicaragua
Fax: (505-2) 668068 Tel: (505-2) 225304
Fax: (505-2) 668711
VISTAZO ECONOMICO MUNDO FINANCIERO
De la Vicky 6-1/2 c. al lago Del Hotel Intercon.
No. 390 1 c. al sur, 1/2 c. abajo
Apdo Postal 282 Managua, Nicaragua
Managua, Nicaragua Tel: (505-2) 281223
Tel: (505-2) 72067 Fax: (505-2) 281220
Fax: (505-2) 780810
There are no regularly scheduled trade shows in Nicaragua. Trade events
are usually held at the Olof Palme Convention Center in Managua. For
the latest event schedule, contact:
Olof Palme Convention Center
General Manager Harvey Mayorga
Tel: (505-2) 281000-05
Fax: (505-2) 225423
(See Appendix G, Trade Events, for more detail.)
--PRICING PRODUCTS
There are no price controls in Nicaragua with the exception of
pharmaceutical sales margins, sugar, domestically produced soft drinks,
and some petroleum derivatives.
--SALES SERVICE/CUSTOMER SUPPORT
Most businesses in Nicaragua place little emphasis on sales service and
customer support. U.S. and foreign businesses which have made customer
service a priority have been well received.
--SELLING TO THE GOVERNMENT
Government procurement is governed by the Law of Administrative
Contracting by the State, Decentralized/Autonomous Agencies, and
Municipalities (August 28, 1981) and its implementing regulations
(November 8, 1981). In theory, the legal framework for procurement
applies to all government acquisitions in excess of one million cordobas
(approximately $135,000), and bids are managed by the Ministry of
Finance's General Directorate of Procurement (GDP). In practice, many
government agencies and parastatals engage in direct purchasing outside
of the legal framework. In addition, whenever a project is financed,
even partially, with external funds (e.g., from the IDB, World Bank,
Central American Bank for Economic Integration), bids are conducted
according to the procedures of the financing organization.
--PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
Patents: Patent applications must be filed with the Ministry of Economy
(Sección de Registro de la Propriedad Industrial). Fees total $230 and,
on average, there is a 2-3 month delay for issuance. Protection is
granted for 10 years, renewable for an additional 10 years.
Copyrights: Copyright applications must be filed with the Ministry of
Education (Sección de Registro de Obras Literarias, Cientificas, y
Artisticas). Fees total $350 and, on average, there is a 3-month delay
for issuance. The protection granted is for the lifetime of the author
and lifetime of his/her heirs.
Trademarks: Trademark applications must be filed with the Ministry of
Economy (Sección de Registro de la Propriedad Industrial). Fees total
$330 and, on average, there is a 7-9 month delay for issuance.
Intellectual property rights protection in Nicaragua does not meet
international standards. See "Protection of Property Rights" under
Chapter VII, Investment Climate, for more information.
--NEED FOR LOCAL ATTORNEY
Local attorneys are recommended for all business activities in
Nicaragua. There are several firms in Managua with experience in
international business and with English-speaking attorneys on staff.
SECTION V.
LEADING SECTORS FOR
U.S. EXPORTS AND INVESTMENT
--BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES
Franchising: One U.S. pizza franchise and two rental car franchises
presently operate in Nicaragua. There is limited competition from
third-country sources. As the Nicaraguan economy grows, we expect
increasing demand for franchise services across-the-board. For the
immediate future, fast food outlets and business service operations are
in greatest demand.
General legal requirements concerning franchises are contained in the
Commercial Code and Foreign Investment Law. There is no specific
regulatory framework.
Agricultural Machinery: Agricultural production accounts for 25 percent
of Nicaragua's GDP. It is a growing sector, and the Government of
Nicaragua, as well as the international donor community, is placing
great emphasis on agricultural reactivation.
In general, Nicaraguan agricultural machinery is outdated and in poor
repair. There has been no significant investment in Western technology
since the mid-70's. Europe and Brazil offer limited competition in this
sector. There is no local production.
Food Processing and Packaging Machinery: Food and beverage industries
account for 65 percent of Nicaragua's manufacturing output, which
totalled approximately $580 million in 1994. The industry is in great
need of processing and packaging equipment, especially as it becomes
more export-oriented and adjusts to international standards. The best
prospects are: fruit extraction machinery, milk processing machinery,
and peanut processing equipment. There is no local production in this
sector.
Construction Equipment: Construction contributed $89 million to
Nicaragua's 1994 GDP, or approximately 3 percent of the total. As the
Nicaraguan economy expands, this sector should be one of the fastest
growing. The greatest need is for equipment for road construction and
housing. Italy, Spain, and Japan offer competition for U.S. firms.
There is no local production.
U.S. Automobile Dealers and Spare Parts: Many U.S. vehicles were
imported into Nicaragua when families returned from exile following
President Chamorro's victory in 1990. There is considerable demand for
servicing and parts for these vehicles as well as for new U.S.
automobiles. Most spare parts are presently brought in by family or
friends from the U.S. At present, there is a GM distributor in Managua
which sells the following Chevrolet vehicles: Cavalier, Chevy S-10, and
Blazer. There is a Ford distributorship as well, offering Escort,
Ranger, and taking individual orders for other Ford makes. There is a
particular need for heavy and light U.S. trucks and sport utility
vehicles.
Telecommunications Equipment: With the privatization of the telephone
utility set for 1995, demand for telecommunications equipment should be
strong over the medium term, as the new investors strive to upgrade the
country's system.
Agro-Chemicals: Nicaragua imported some $15 million worth of agro-
chemicals in 1994. As the agricultural sector expands, that figure will
likely increase. The most significant imports are urea, fungicides,
herbicides, and complete formulas. Third-country competition comes
mainly from Belgium and from other Central American countries.
Electrical Equipment: Electricity demand far outweighs supply in
Nicaragua. Even with only 44 percent of the population enjoying access
to electricity, there will be an estimated deficit of 76 gwh in 1995.
There is opportunity for sales of generators, surge protectors, and
transformers. Third-country competition originates mainly in Asia,
with an emphasis on small, inexpensive units, rather than larger, high
quality ones.
With the reorganization of the state energy utility in January 1995, the
GON is placing more importance on energy generation and
commercialization. For the first time in many years, the Nicaraguan
authorities have authorized private firms to build their own plants to
generate and sell energy. We expect increasing demand for equipment and
technical expertise in the field of designing, constructing, and
operating electrical power plants.
--BEST PROSPECTS FOR AGRICULTURAL SECTOR
Wheat: U.S. exports of wheat to Nicaragua totalled a record $10.9
million in 1994. Total Nicaraguan wheat imports in 1994/1995 are
estimated at 80,000 MT, all of which is expected to come from the U.S.
In 1994/95 exports are comprised of about 20,100 MT from the EEP (Export
Enhancement Program) and about 60,000 MT of commercial sales. Three
private mills import wheat into Nicaragua and reportedly are satisfied
with U.S. quality. Nicaragua imports primarily spring wheat, but also
imports small quantities of soft wheat (and on occasion, hard red).
Rice: U.S. milled rice exports in CY94 totalled $7.4 million, a 39
percent increase over 1993. Imports in 1994 from all sources totalled
about 43,000 MT of which 22,000 MT came from the U.S.
Two private sector rice importers make most large imports, and the GON
(ENABAS) makes emergency purchases as needed. U.S. exports of milled
rice (20 percent broken) are usually in 50 kg bags (which are then
repackaged locally into smaller bags of 2.2 kg), but small quantities of
retail-size rice are also exported directly. Nicaragua is expected to
continue to import 25-35,000 MT of rice annually over the next few
years. Cheaper sales from Vietnam sharply cut U.S. sales in the second
half of 1993 and first half of 1994, but an April 1994 ban on Asian
grain imports due to phytosanitary concerns bolstered U.S. sales
prospects through the remainder of 1994 and into CY95.
Tallow: In 1994, U.S. exports of tallow were valued at about $4.0
million dollars. In FY94, 13,100 MT of tallow were donated to the
Government of Nicaragua, under the PL-480 Title III Program. Nicaragua
produces only about 2,000-3,000 MT of tallow and normally consumes about
20,000 MT. The U.S. has been supplying almost all of Nicaragua's
tallow imports, largely through PL-480 donations. Since no donations
are expected for FY95, Nicaragua will fill its demand through normal
commercial purchases.
Vegetable Oil: U.S. exports of vegetable oil were valued at $3.1
million in 1994. Nicaragua imported an estimated 33,500 MT of vegetable
oil in 1994, with Argentinian soy oil representing about half of this
amount and lesser quantities of olein from Malaysia and soy oil from
Costa Rica. Imports of vegetable oil in 1995 are estimated near 1994's
level. Although local industry has traditionally imported only about
15,000 MT of vegetable oil from the U.S., in CY95 the industry is
expected to meet its total demand from the U.S. Competition from other
suppliers (based on price) will be the key factor affecting U.S.
exports.
The U.S. Department of Agriculture announced for FY95 a total allocation
under the Cottonseed Oil Assistance Program (COAP) of 175,000 MT of
cottonseed oil. Eight countries are targeted to benefit from this
program, including 10,000 MT allocated to Nicaragua. To date, no
imports have been made under COAP.
Poultry and Livestock Genetics: U.S. exports of hatching eggs to
Nicaragua reached a record $2.3 million in 1994. The U.S. also exported
baby breeding chicks for broilers valued at $110,694 in 1994.
Nicaraguan poultry meat output in 1994 was about 56.7 million pounds, a
12 percent increase over 1993. The growing poultry meat industry (as an
inexpensive protein source), high quality U.S. genetics, and adequate
incubator space have led to increased poultry genetics imports, mostly
from the U.S. U.S. technical assistance to the poultry industry, under
the Emerging Democracies Program, has benefitted the industry (broiler
and layer) and U.S. genetic sales.
Some opportunities exist for exports of semen for cattle and live cattle
depending on price and credit options. U.S. exports in 1994 totalled
only $33,509, consisting of bull semen; however, larger semen exports
and some live cattle sales are expected in 1995.
Planting Seeds: U.S. exports to Nicaragua were valued at $730,000 in
1994, primarily sorghum hybrid seed. Nicaragua plans to increase yields
of basic grains (like sorghum and corn) and is increasing planted area
of some oilseeds (soybeans, peanuts). Nicaragua is also increasing
planted area of different non-traditional fruits and vegetables (e.g.,
melons and onions) which may provide U.S. seed export opportunities.
White and Yellow Corn: In 1994, U.S. exports of white corn (fit for
human consumption), totalled about $1.6 million. The GON (ENABAS) made
this purchase in mid-1994 as an emergency measure to supply local demand
as a severe drought affected the corn-growing region on Nicaragua's
Pacific Coast. In FY94, 18,000 MT of yellow corn, valued at about $2.4
million, were donated to the poultry industry under the PL-480 program.
No donation is expected for FY95. However, demand for this product
exists and all purchases will be met through commercial sales in 1995.
SECTION VI.
TRADE REGULATIONS AND STANDARDS
--TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS, AND IMPORT
TAXES
Nicaragua maintains a maximum tariff level (DAI) on virtually all
imports of 20 percent of CIF value. An additional Temporary Protection
Tariff (ATP) of 5-15 percent of CIF value is levied on some 900 imported
items, largely goods also produced in Nicaragua. Some 750 other
products (whether imported or locally produced) are assessed a Specific
Consumption Tax (IEC), generally limited to 15 percent of CIF value. A
stamp tax of 5 percent (ITF) is levied on all imports. The country's 15
percent sales tax (IGV) is charged (in a cascading fashion) on entry of
all imported goods that are not categorized as basic food basket items.
Overall import taxation levels on so-called "fiscal" goods (e.g.,
tobacco, soft drinks, and alcoholic beverages) are particularly high.
Importers of many types of consumer items confront a total import tax
burden of 30-45 percent. Nevertheless, the Government calculates its
average tariff rate (DAI + ATP + ITF) at only 14.5 percent, which is
scheduled to be reduced to 10.1 percent by the year 2000.
--CUSTOMS VALUATION
In some cases, tariffs and import taxes are not assessed on a CIF/bill
of lading basis, but rather on a "reference price" determined by
Customs. At times, this reference price is significantly higher than
the actual amount paid by importers.
--IMPORT LICENSES
Although Nicaragua's Constitution reserves foreign trade as an exclusive
preserve of the state, in 1991 President Chamorro signed a decree
mandating pro forma licensing of private export and import transactions.
In most cases, the issuance of these licenses is little more than a
formality. Permits are required only for the importation of sugar.
Special permission must be sought from the Ministry of Government for
the importation of firearms and explosives. U.S. exporters of food
products should check with the Ministry of Agriculture concerning
phytosanitary requirements.
--EXPORT CONTROLS
Few export controls remain in place. GON regulations currently prohibit
the export of uncut timber, reproductive-phase lobsters, larval shrimp,
and wildlife/ wildlife products. The export of capital goods as scrap
requires the permission of the Ministry of Economy. Gold exports may
require special permission of the Central Bank.
--IMPORT/EXPORT DOCUMENTATION
Imports require the following documentation:
--Bill of lading (for land and maritime shipments)
--Packing list
--Airway bill (for air shipments)
--Invoice
Exports (outside Central America) require the following paperwork:
--Export certificate
--Evidence of registration with the Central Bank's Combined Export
Registry (RUE)
--Customs form as provided by a broker
--Copy of general export license for shipments of "traditional"
goods (coffee, cotton, sugar, meat, shrimp, and lobster)
All export documentation can be processed at the government's one-stop
export center, CENTRAMEX, located at the Nejapa Shopping Center in
Managua.
--TEMPORARY ENTRY
Exporters may import inputs (machinery, raw materials, packaging
materials, etc.) duty free. Firms located in Las Mercedes Industrial
Zone, contiguous to the international airport, can conveniently import
unfinished products for processing, and re-export on a duty-free, in-
bond basis. This same treatment is accorded to subcontractors of Free
Zone plants. Registered foreign investors are allowed to re-export
equipment and machinery as repatriated capital.
--LABELING/MARKING REQUIREMENTS
A Consumer Protection Law, which is expected to be in effect by mid-
1995, introduces product labeling standards and consumer rights to
Nicaragua. While most U.S. products will likely meet Nicaragua
regulations by following U.S. guidelines, the following should be noted:
--A label must list product origin, contents, price, weight,
production date, and expiration date. Proper use and risk information
also should be provided. All information must be in Spanish.
--PROHIBITED IMPORTS
Few restrictions exist. The Ministry of Natural Resources and the
Ministry of Agriculture do regulate the use of agricultural chemicals.
Military weapons may only be imported by the Armed Forces; import
shipments of civilian weapons must be accompanied by a license issued by
the Ministry of Government. The duties/taxes on a few items (e.g.,
chicken parts with import charges of over 250 percent) are so high that
sales here may not be feasible.
--STANDARDS
No standards are in place for manufactured and processed products.
However, standards issued by the Central American Institute of
Industrial Research and Technology are often used as a guide.
--FREE TRADE ZONES/WAREHOUSES
The state-owned Las Mercedes Industrial Free Zone is located near
Managua's international airport. Sixteen firms (Nicaraguan, U.S.,
Asian, and European) are currently operating there; use of the Zone has
expanded dramatically over the past two years. Free Zone firms
currently manufacture clothing, shoes, gold jewelry, bridal supplies,
and extruded aluminum. Local law does allow for the establishment of
private free zones. At least one group of investors is contemplating
the establishment of such an enterprise.
--SPECIAL IMPORT PROVISIONS
Importers of pharmaceutical products must provide considerable
documentation to the Ministry of Health. Importers of fresh produce,
livestock, and food products should check with the Ministry of
Agriculture for the latest phytosanitary regulations.
--MEMBERSHIP IN FREE TRADE ARRANGEMENTS
Nicaragua is a member of the Central American Common Market. As such,
the majority of goods produced in these nations are imported duty free.
The country also enjoys duty-free access to the Mexican and Venezuelan
markets on a limited number of exports. Free trade talks between Mexico
and Nicaragua were suspended in early 1995 due to the Mexican peso
crisis. Free trade talks with Colombia and Venezuela are also on hold.
Nicaragua is a Caribbean Basin Initiative beneficiary; the country is
currently not a beneficiary of the Generalized System of Preferences.
SECTION VII.
INVESTMENT CLIMATE
--OPENNESS TO FOREIGN INVESTMENT/TRADE AND INVESTMENT BARRIERS
The administration of President Violeta Barrios de Chamorro, which
assumed office in February 1990, following 11 years of Sandinista rule,
has made significant progress in opening Nicaragua to foreign
investment. President Chamorro and the top levels of the Nicaraguan
government have a decidedly pro-foreign investment attitude. On certain
limited occasions, some mid-level officials have caused complications
for foreign investors.
The Foreign Investment Law guarantees foreign investors the right to
remit 100 percent of profits through the official exchange market and, 3
years after the initial investment, repatriation of original capital.
The law also allows 100 percent foreign ownership in most sectors of the
economy. To benefit from the law, investments must be approved by a
Foreign Investment Committee of the Ministry of Economy and Development.
Foreign investment which does not receive such prior approval is
permitted, but does not enjoy the repatriation guarantees of the law.
Telecommunications, insurance, water and sewage systems, and power
generation/transmission remain the exclusive preserves of the state, but
changes in this policy are soon expected. The National Assembly is
presently debating a bill to privatize 40 percent of the telephone
operations of the state telecommunications agency (TELCOR). In early
1995, INE (the government energy agency) was split into two entities,
the regulatory/policy agency (also called INE) and the power generation
and transmission firm, ENEL. ENEL is in the process of negotiating
power purchase arrangements with potential investors in the electricity
generation sector, and the privatization of the government's one
geothermal plant. De-monopolization of the insurance sector is also
planned, but no specific date has been set as draft legislation is still
pending in the National Assembly. The petroleum sector was recently
liberalized to eliminate the government's import monopoly, although pump
prices for regular octane gasoline and diesel, as well as for bunker and
kerosene, are still set by the government under an interim regime. Full
liberalization of petroleum and petroleum derivatives prices is
anticipated in 1996.
Foreign investors receive national treatment with respect to
export/import policies and privatization proceedings. There are no
onerous visa, residence, or work permit requirements which inhibit
foreign investment.
Property Rights: Lack of clear title to property, both urban and rural,
continues to be a major impediment to investment. Most of the
properties in question were confiscated during the Sandinista years and
redistributed to individuals and cooperatives. The Government has
developed a dispute resolution mechanism to either return confiscated
properties to their original owners or provide compensation in the form
of government bonds. Progress has been slow, but has improved in recent
months with the establishment of a combined government property claims
resolution office. The World Bank has initiated a major program to
assist in the titling of rural lands.
Legal System: The legal system is inefficient and highly politicized;
enforcement of judicial determinations is inconsistent. In contractual
relationships, mandatory arbitration provisions are an alternative to
judicial resolution of disputes. Nicaragua is a member of the
International Center for the Settlement of Investment Disputes (ICSID).
Investment Barriers: In order to receive the benefit of the 1991
Foreign Investment Law (guaranteed repatriation of profits and
repatriation of original capital 3 years after the initial investment),
investments must be approved by an interagency Foreign Investment
Committee. These approvals can be time-consuming and contain criteria
(e.g., approval by the Government's environmental agency) which lack
clear definition. Investments may be made without Foreign Investment
Committee approval, but such investments do not enjoy repatriation
guarantees.
Licenses: 1-year import/export licenses are issued by the Ministry of
Economy and Development on an essentially pro forma basis.
State Monopolies: Insurance remains under exclusive government control,
along with the provision of basic public utility services.
--CONVERSION AND TRANSFER POLICIES
Dollars are freely available through a legal parallel exchange market
which in 1994 operated with an average spread of 2.6 percent over the
official market. The Central Bank monitors exchange house activity
through a reporting requirement, but in all other respects the exchange
houses operate free from government controls. The relative small size
of the dollar market may be a limiting factor for large transactions.
In 1994 the exchange houses engaged in trades of $371 million, a 42
percent increase over 1993.
We are aware of no instances where a major company or investor has been
unable to obtain dollars or repatriate earnings or capital.
Transactions at exchange houses are completed instantly in most
instances. Transactions at the
Central Bank for the purchase of official market dollars generally take
2 weeks to finalize, but there have been isolated instances during
periods of low international reserves when delays of 30-60 days were
encountered.
The U.S. Embassy has local currency expenditures of approximately $2
million per annum. Local currency is purchased through the U.S.
Government Regional Finance Center in Mexico City.
The cordoba oro is presently on a monthly crawling-peg devaluation
schedule at the rate of 1 percent per month. That rate is anticipated
to remain steady throughout 1995.
--EXPROPRIATION AND COMPENSATION
The Embassy is aware of no confiscations of private property which have
taken place during the Chamorro Administration. However, more than
5,000 individuals and corporations (including some 600 U.S. citizens)
filed property claims against the Government of Nicaragua for
confiscations which took place during the Sandinista era. To date,
approximately 30 percent of U.S. citizen claims have been resolved. A
property compensation mechanism is in place, but it has proved
inadequate to date in resolving the majority of cases. In those cases
in which property cannot be returned to original owners, compensation is
provided in the form of issuance of 15-year Government of Nicaragua
bonds carrying interest of 3 to 5 percent pegged to the dollar. There
is a secondary market for sale of the bonds, although at this writing
they are transacted at approximately 20 percent of face value.
--DISPUTE SETTLEMENT
The resolution of investment disputes in Nicaragua is unpredictable.
There is a Commercial Code and Bankruptcy Law, though both are in need
of revision. Mortgages and secured property interests are now
recognized and becoming more common as the private financial system is
re-established. On the whole, the legal system is cumbersome, and
enforcement of judicial determinations is uncertain and often subject to
political considerations. Nicaragua is a party to the Inter-American
Convention on Arbitration and a member of the International Center for
the Settlement of Investment Disputes (ICSID). Arbitration clauses are
recommended as a means to avoid the uncertainty of the judicial system.
--POLITICAL VIOLENCE
In general terms, political violence in Nicaragua decreased sharply in
1994. However, scattered incidents of political violence continue to
occur in Nicaragua as the country completes its transition from civil
war to peace and from an authoritarian government to a democracy. We
are aware of no recent instances of political violence directly targeted
at foreigners or foreign business operations.
The rural mountainous zones, particularly those areas bordering
Honduras, continue to experience the greatest levels of violence. This
has had its most significant economic impact on the cattle and coffee
sectors. The roots of the violence are a mixture of political and
socio-economic factors. In general, remnants of once-ideologically
motivated para-military units have degenerated to committing only acts
of criminal violence. The fisheries sector in the region of the
Atlantic Coast has also been subject to isolated violent attacks.
Sandinista influence in labor unions remains strong. Incidents of labor
protests have occurred in recent memory, particularly in the transport
sector, and on occasion isolated acts of violence accompany the
protests.
--PERFORMANCE REQUIREMENTS/INCENTIVES
Investors are generally not required to export specific amounts,
incorporate minimum percentages of local content, agree to transfer
specific technologies, or meet other performance criteria.
Nevertheless, each foreign investor who chooses to register under the
Foreign Investment Law must negotiate an individual "investment
contract" with the Foreign Investment Committee. These individual
contracts might contain performance criteria. In addition, certain
sectoral laws -- for example, the fisheries law requires all local catch
to be processed in Nicaragua -- may contain certain performance
requirements.
--RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
Both foreign and domestic private entities may establish and own
business enterprises and profit-making activities. Local law grants the
right to freely establish, acquire, and dispose of virtually any type of
business interest or property, with the exception of those sectors where
government monopoly is established by law. The Embassy is aware of no
instances where private enterprises were not treated on an equal footing
with public enterprises with respect to access to markets, credit, and
other business operations.
--PROTECTION OF PROPERTY RIGHTS
Protection of rights to both tangible and intangible (intellectual)
property is inadequate in Nicaragua.
Tangible Property
Although there has been no unlawful seizure of private property during
the Chamorro Administration, Nicaragua has yet to resolve the cases of
numerous property claimants whose properties were seized during the
Sandinista era. Judicial enforcement of property interests remains
problematic.
Intellectual Property
Patents: Nicaragua's Patent Law is antiquated and in need of revision
to include protection for computer programs, bio-patents (living
organisms), films, music, etc. Protection is limited by short patent
terms (10 years). In October 1992, Nicaragua committed, along with its
Central American neighbors, to accede to the Paris Convention for the
Protection of Industrial Property. It has yet to do so. New patent
legislation has been submitted to the National Assembly, but is not yet
under active consideration.
Copyrights: Copyright protection dates from the 1904 Civil Code and is
deficient in many respects, including failure to protect sound
recordings, computer programs and databases. Video piracy is common and
not controlled. New copyright legislation has languished in the
National Assembly since late 1991. Nicaragua is a signatory to the
following copyright conventions:
-- Mexico Convention on Literary and Artistic Copyrights (1902)
-- Buenos Aires Convention on Literary and Artistic Copyrights (1910)
-- InterAmerican Copyright Convention (1946)
-- Universal Copyright Convention (Geneva 1952 and Paris 1971)
-- Brussels Satellite Convention (1974)
Trademarks: Trademark infringement remains a potential problem area for
Nicaragua. Although few instances of infringement involving U.S.
companies have been reported, current Nicaraguan procedures allow
individuals to register a trademark without restriction, at a low fee,
for a period of 15 years. The Central American Convention for the
Protection of Industrial Property, of which Nicaragua is a signatory,
was revised in November 1994. The Convention has been signed by the
Executive Branch, but has not yet been ratified by the National
Assembly.
Trade Secrets: There is no trade secret protection.
Semi-conductor Chip Layout Design: There is no protection for these
works.
--REGULATORY SYSTEM: LAWS AND PROCEDURES
Despite significant streamlining during the past 5 years, Nicaragua's
legal and regulatory framework remains cumbersome and an impediment to
investment. The rules are not transparent, and much business is still
conducted on a "who you know" basis. Lack of reliable dispute
resolution mechanisms -- whether judicial or administrative --
complicates even relatively minor disputes with the authorities or
Nicaraguan business contacts.
Tax policy has been simplified. The Central Government imposes the
following taxes: tariffs and stamp taxes for imports, a consumption tax
for 900 domestic and imported products, a temporary protective tariff on
750 imported items, a general sales tax on all goods and services
(except essential consumer goods), and a corporate and personal income
tax. The Municipality of Managua also imposes a 2 percent ad valorem
tax on all goods and services whether or not the sale is consummated in
Managua. Employers must make a contribution to social security and
worker training funds for each employee. Many businessmen regard these
as additional taxes in that the paid-for services are rarely provided.
The Labor Code contains many provisions concerning hiring/firing of the
workforce and benefits. It is presently undergoing revision before the
National Assembly. We recommend that potential investors consult the
new law prior to initiating business activities.
--BILATERAL INVESTMENT AGREEMENTS
Nicaragua has signed bilateral investment agreements with Spain, Taiwan,
Denmark, and the Netherlands. The Government is currently discussing
similar agreements with the United Kingdom, the United States, Mexico,
Venezuela, Germany, Switzerland, Russia, Ecuador, Sweden, and South
Korea.
--OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
The U.S. Overseas Private Investment Corporation offers financing for
U.S. investments in Nicaragua. It also can provide political risk,
expropriation, and inconvertibility insurance. Nicaragua is a member of
the Multilateral Investment Guarantee Agency (MIGA).
--LABOR
Nicaragua's labor force, estimated at 1.54 million workers, is rural-
based and largely unskilled. 37 percent of the economically active
population is employed in the agricultural sector, 17 percent in the
manufacturing sector, and 46 percent in the service sector. The
Government estimates an unemployment rate of 23 percent and
underemployment rate of 28 percent; the World Bank pegs unemployment at
13 percent.
Nicaragua has the lowest population density in Central America. There
is a shortage of skilled technicians and managerial personnel, although
the situation is improving as members of the business and professional
classes return from exile.
The high unemployment and underemployment rates have eroded the strength
of the trade union movement. Approximately one-third of the unionized
labor force belongs to militant Sandinista unions. Workers freely
exercise their right to strike. Under the present Labor Code (presently
under revision by the National Assembly), workers may strike only after
they have exhausted other methods of dispute resolution, including
mediation by the Ministry of Labor. Nevertheless, labor strife does on
occasion take place and can be politically motivated.
Since President Chamorro came into office in April 1990, a number of
independent (or "democratic") unions have been formed. Domestic and
foreign investors generally prefer working with these unions.
--FREE TRADE ZONES/FREE PORTS
Free trade zones are permitted in Nicaragua pursuant to a Presidential
decree issued in 1991. Companies operating in these zones are eligible
for exemptions in income tax, value-added tax, tariffs, export taxes,
and other fiscal measures. Free zone firms must comply with Nicaraguan
labor law. Private free trade zones are authorized, but none currently
operates. Free trade zone benefits apply equally to foreign and
national firms.
At present, one Government-owned free trade zone (Las Mercedes) is in
operation near the Sandino International Airport in Managua. Sixty-five
percent of the zone has been developed, with sixteen firms (Nicaraguan,
U.S., Asian, and European) presently operating there. Free zone firms
currently manufacture apparel, shoes, gold jewelry, bridal supplies, and
aluminum frames. The free trade zone currently employs 6,000
individuals, with plans to increase to 9,000 employees by year-end 1995.
75 percent of the exports are to the U.S., with the remainder to Central
America. In calendar year 1994 valued-added exports from the free trade
zone totalled USD 37 million, up from USD 19 million in 1993. Free
trade zone authorities estimate 1995 exports will increase to USD 44
million.
--CAPITAL OUTFLOW POLICY
Repatriation of original capital of foreign investments through the
official market is governed by the Foreign Investment Law. The Embassy
is aware of no restrictions on the export of capital by Nicaraguan
citizens and businesses. Foreign exchange is readily available as well
on Nicaragua's parallel foreign exchange market.
--MAJOR FOREIGN INVESTORS
--ESSO STANDARD OIL, petroleum refiner and a major distributor of
petroleum derivatives.
--INDUSTRIAS KATIVO and H.B. FULLER, paint and paint-related
preparations manufacturer and distributor.
--TEXACO CARIBBEAN, sales of petroleum derivatives; parent company:
Texaco Inc.
--HOTEL INTERCONTINENTAL, acquired by Taiwanese investors.
--HOTEL MONTELIMAR, acquired by the Spanish Barcelo Group.
--BAYER QUIMICAS UNIDAS with German, Salvadoran, and Guatemalan
investment; production of agro-chemical products primarily for domestic
consumption.
--PEPSI-COLA, soft drink manufacturer (majority of capital is
foreign but not PEPSICO, INC.).
--TANIC, S.A., Nicaragua's tobacco company, with majority British
investment; controls 99 percent of cigarette sales in Nicaragua.
--TRITON, a Canadian-owned mining company with gold mining
interests.
--HEMCO, a U.S.-owned mining concern.
--CRESSIDA, a Honduran-owned tomato processing plant.
--GULF KING/OCEANIC, a U.S. and Nicaraguan mixed fisheries and
seafood processing operation.
--SAN MARINO SEA FARMS, an aquaculture operation with Nicaraguan
and U.S. capital.
--SHELL NICARAGUA, petroleum distributor.
SECTION VIII.
TRADE AND PROJECT FINANCING
--BRIEF DESCRIPTION OF BANKING SYSTEM
There are fourteen commercial banks operating in Nicaragua, three are
state-owned and eleven are private. With the exception of the smallest
state bank, all have correspondent relations with banks in the U.S.,
Europe, and Canada. All banks accept deposits in dollars as well as
cordobas.
The Superintendency of Banks is the bank regulatory agency. It was
established in 1991 with assistance from the U.S. Agency for
International Development (AID), and functions as an independent
regulatory entity. Management of the Superintendency to date has been
professional, independent of political pressure, and in accordance with
international standards.
--FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
The Chamorro Administration has removed virtually all foreign exchange
controls. A legal parallel exchange market operates free from
government restrictions and is growing. In 1994, the market engaged in
purchases/sales valued at $371 million, a 42 percent increase over 1993.
Foreign exchange generated from the export of most traditional products
(e.g., beef, coffee, sugar, cotton) must be surrendered to the Central
Bank, although private banks can accept the dollars as agents of the
Central Bank. Remittance of profits generated through foreign
investments, as well as original capital three years following
investment, is guaranteed for those investments registered under the
Foreign Investment Law. Investors who do not register their capital may
still make remittances through the parallel market, although these
transactions are not guaranteed by law. Embassy is aware of no investor
who has encountered remittance difficulties since inception of the
Foreign Investment Law in 1991.
--FINANCING AVAILABILITY
Nicaragua's capital base is small and the financial system has limited
assets. Total assets for the Nicaraguan financial system as of December
31, 1994, reached approximately $889 million. Long-term financing is
scarce; approximately 50 percent of the outstanding loan portfolio for
the financial system consists of loans of one year or less.
Interest rates are established by the market. At present, rates range
from 16-25 percent for short-term loans and 14-20 percent for long-term
loans with "maintenance of value" provisions.
The Foreign Investment Law limits access by foreign investors to
domestic financing to short-term working capital. Real estate mortgages
are limited to 3-5 years, and chattel mortgages are generally
unavailable without a guarantee issued by a foreign bank.
--HOW TO FINANCE EXPORTS/METHODS OF PAYMENT
Exports are financed through existing resources of the banking system or
through funds of second-tier institutions, primarily the National
Investment Finance Company (FNI) or the Central American Bank for
Economic Integration (CABEI). Export financing through the local banks
is mostly short-term and carries higher interest rates than funds
obtained through FNI or CABEI.
Various methods of payment are utilized for export financing, the most
common being on-sight and on-delivery. Virtually all Nicaraguan banks
have correspondent relationships with U.S. banks (see "List of Banks
with Correspondent U.S. Banking" below).
--TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE
The U.S. Overseas Private Investment Corporation (OPIC) provides
financing and insurance for investments with U.S. investor
participation. OPIC offers loans and loan guarantees for projects with
a minimum 25 percent U.S. investor beneficial interest and political
risk insurance covering currency inconvertibility, expropriation, and
political violence. It also provides specialized coverage for leasing,
oil and gas exploration, natural resources, and contractors.
The U.S. Export-Import Bank does not presently provide coverage for
Nicaragua. However, EXIM Bank maintains a regional $50 million medium-
term credit guarantee facility for capital equipment through the Central
American Bank for Economic Integration (CABEI).
Nicaragua is a member of the Multilateral Investment Guarantee Agency
(MIGA).
--PROJECT FINANCING AVAILABLE
Substantial project financing is available through FNI and CABEI. FNI
manages a series of funds from the international donor community,
including projects for non-traditional exports, small business support,
renovation of coffee plantations, and assistance to the livestock
sector. CABEI manages project funds for a variety of purposes,
including road construction, rehabilitation of the free trade zone,
energy generation, and housing.
Public sector financing is also administered directly by the
international donor community. The InterAmerican Development Bank,
World Bank, USAID, UNDP, and several other governmental and non-
governmental organizations maintain active project portfolios in
Nicaragua.
--LIST OF BANKS WITH CORRESPONDENT U.S. BANKING
Private Nicaraguan banks have the following correspondent U.S. banks:
Banco de America Central (BAC)
Popular Bank of Florida, Miami, FL
Nationsbank of Florida, Miami, FL
Banco de Credito Centroamericano (BANCENTRO)
Barnett Bank, Miami, FL
Barclays Bank PLC, Miami, FL
Deustch Sudamerikanische Bank Aktiengesellschaft, Miami, FL
First Union National Bank of Florida, Miami, FL
Hamilton Bank, N.A., Miami,FL
Nationsbank of Florida, Miami, FL
Popular Bank of Florida, Miami, FL
Citibank, N.A., New York, NY
Banco de Exportacion, S.A. (BANEXPO)
Bankamerica International, Miami, FL
Pacific Industrial Bank, Miami, FL
American Express Bank International, Miami, FL
Banco Panamericano, S.A., Miami, FL
Banco Mercantil
Republic National Bank, Miami, FL
Hamilton Bank, N.A, Miami, FL
Intercredit Bank, N.A., Miami, FL
Deustsch Sudamerikanische Bank Aktiengesellschaft, Miami, FL
Chemical Bank, New York, NY
Nationsbank of Florida, Miami, FL
International Bank of Miami, Miami, FL
Key Biscayne Bank, Key Biscayne, FL
Banco de la Produccion, S.A. (BANPRO)
Nationsbank of Florida, Miami, FL
Banco Internacional de Costa Rica, Miami, FL
Bankamerica Internacional, Miami, FL
Popular Bank of Florida, Miami, FL
St. George Investments, Inc., Miami, FL
Banco de Prestamos, S.A. (BANPRES)
Nationsbank of Florida, Miami, FL
Banco Atlántico, Miami, FL
Banco Intercontinental, S.A. (Interbank)
Nationsbank of Florida, Miami, FL
Banco Internacional de Costa Rica, Miami, FL
State-owned Nicaraguan banks have the following correspondent U.S.
banks:
Banco Nacional de Desarrollo (BANADES)
Wells Fargo Bank, Los Angeles, CA
Lloyds Bank, Los Angeles, CA
Melon Bank, Philadelphia, PA
Continental Bank, Chicago, IL
Sanwa Bank Limited, Chicago, IL
Northern Trust Company, Chicago, IL
Whitney National Bank, New Orleans, LA
Maryland National Bank, Baltimore, MD
Nationsbank of Florida, Miami, FL
Deutsch Sudamerikanische Bank Aktiengesellschaft,
Miami, FL
Popular Bank of Florida, Miami, FL
First Union National Bank, Miami, FL
Amtrade International Bank, Miami, FL
Wells Fargo International Bank, Miami, FL
Marshall and Illsley Bank, Milwaukee, WI
First Wisconsin National Bank, Milwaukee, WI
Bank of New York, New York, NY
Marine Midland Bank, New York, NY
Chemical Bank of New York, New York, NY
Security Pacific International Bank, New York, NY
Merchants Bank of New York, New York, NY
Citibank, New York, NY
Philadelphia International Bank, New York, NY
Mercantile Bank, St. Louis, MO
First Union National Bank, Charlotte, NC
Nationsbank of North Carolina, N.A., Charlotte, NC
Southern National Bank of North Carolina,
Charlotte, NC
Society National Bank of Cleveland, Cleveland, OH
Union Commerce Bank, Cleveland, OH
Huntingdon National Bank of Columbus, Columbus, OH
Texas Commerce Bank, Houston, TX
Bankers Trust International, Houston, TX
Banco Nicaraguense de Industria y Comercio (BANIC)
Nationsbank of Florida, Miami, FL
Popular Bank of Florida, Miami, FL
Intercredit Bank, N.A., Miami, FL
Bank of America International, Miami, FL
First Union National Bank, Miami, FL
Chemical Bank, New York, NY
Banco de Credito Popular (BCP)
BCP has no correspondent relationships with U.S. banks, but
through BANIC has the capacity to conduct international operations with
U.S. institutions.
SECTION IX.
BUSINESS TRAVEL
--BUSINESS CUSTOMS
Business customs are informal. The use of coats and ties or business
suits is rare. Delays are common in the start of scheduled
appointments, and flexibility in business travel is recommended.
Business lunches are lengthy, and most Nicaraguan executives are
unavailable between 12:00 noon and 2:00 p.m.
Informal dress (open collar shirts and slacks for men; dresses or skirts
and blouses for women) is appropriate for all meetings. Long-sleeve
dress shirts are recommended for evening business events.
--TRAVEL ADVISORY AND VISAS
No Department of State travel advisory is in effect for Nicaragua at
present. However, travelers are encouraged to check with their travel
agent or contact the Department of State at (202) 647-6575 prior to
initiating travel to obtain the latest consular information sheet
concerning Nicaragua. U.S. citizens do not need to obtain a visa for
visits of less than 30 days. Tourists cards are required and may be
obtained upon entry for $5.00. Visas are required for stays of 30 days
or greater and individuals wishing to establish themselves in the
country must request a resident visa from the Office of Immigration.
There is a departure tax of $12.00.
--HOLIDAYS
The following holidays are observed in Nicaragua:
New Year's Day January 1
Holy Thursday Variable
Good Friday Variable
Labor Day May 1
Sandinista Revolution Day July 19
Festival of Santo Domingo August 1
Battle of San Jacinto September 14
Independence Day September 15
Immaculate Conception Day December 8
Christmas Day December 25
--BUSINESS INFRASTRUCTURE
Transportation: Nicaragua has a highway network of 9,550 miles,
consisting of 1,000 miles of paved highways, 1,750 miles of paved roads,
3,200 miles of all season unpaved roads and 3,400 miles of dry season
unpaved roads.
Nicaragua has a total of six seaports, all of which are operated by the
Government-run Port Authority (ENAP). The most suitable for commercial
shipping is the Port of Corinto located on the Pacific Coast, 110 miles
northwest of Managua. The Port of Corinto has a capacity of 1,516,900
tons annually and is presently upgrading its facilities. Puerto
Sandino, also located on the Pacific Coast, is primarily used for the
import of crude petroleum. The remaining Pacific port of San Juan del
Sur has limited capacity and uses barges to load and unload cargo. On
the Atlantic Coast, Nicaragua has three seaports (El Bluff, El Rama and
Puerto Cabezas). El Bluff and Puerto Cabezas are basically piers and
handle limited cargo. El Rama is a roll-on, roll-off port and is
located on the Rama River, 40 miles from the coast. Most containerized
sea cargo and fresh fruit is shipped by highway to Puerto Limon in Costa
Rica or Puerto Cortes in Honduras.
Managua's Cesar Augusto Sandino International Airport is located 7 miles
from the capital city and handles all international passenger and cargo
to and from Nicaragua.
Language: The official language of Nicaragua is Spanish, but English is
widely spoken in business and government circles.
Telephone Communications: Nicaragua's communication system (telephone,
telex, telefax, etc) is presently being updated with the installation of
fiber optic technology. Approximately one out of 110 households in
Nicaragua has a telephone line. Public phones are just beginning to
operate all over the country. Cellular phones are now available in
Nicaragua with coverage over the entire Pacific Coast. Approximate cost
per minute is USD 0.40 cents. Communications with the U.S. are readily
available; AT&T, Sprint, and MCI maintain direct line service to the
U.S.
Housing and Hotels: The following hotels in Managua cater to the
international business traveler:
Hotel Camino Real Tel: (505-2) 631410
Fax: (505-2) 631380
Hotel Intercontinental Tel: (505-2) 286991
Fax: (505-2) 283087
Hotel Las Mercedes Tel: (505-2) 631715
Fax: (505-2) 631082
Hotel Mansion Teolinda Tel: (505-2) 281323
Fax: (505-2) 224908
Hotel Ticomo Tel: (505-2) 650210
Fax: (505-2) 651529
Approximate cost for a single room in any of these hotels is from USD 60
to USD 180 per night.
There are no first-class apartment buildings in Nicaragua. There is an
ample supply of houses for rent, but rental costs are high, from USD 750
to USD 1,500 for a 3-bedroom house in safe neighborhoods.
Food: Several restaurants in Managua offer first-class international
and continental cuisine. Outside of the capital, the local diet
consists of chicken, beef, fish, rice, beans, plantains and potatoes.
Health: Health conditions in Nicaragua are improving, although it
remains a tropical country with the presence of such diseases as
cholera, malaria and dengue fever. It is recommended that sanitary
practices be carefully followed, particularly outside of Managua.
Typhoid, polio, tetanus, diphtheria and gamma globulin (or Hepatitis A)
are recommended vaccinations prior to leaving the U.S., particularly if
the visit is to be for any length of time.
Local hospitals can be used for many conditions. However, they fall
short of U.S. standards of care. There are few U.S.-trained
physicians. There are many pharmacies with adequate supplies of most
commonly used medications.
SECTION X.
APPENDICES
--APPENDIX A -- COUNTRY DATA
1994 1995 1996
Population (millions) 4.40 4.54 4.68
Population Growth Rate (%) 3.28 3.18 3.08
Religion(s) 95% Catholic
Government System Democratic
Languages Spanish, English (on the
Atlantic Coast)
Work Week By law, 6 days (48 hours)
--APPENDIX B -- DOMESTIC ECONOMY (FOR 1994, 1995, AND 1996 ESTIMATE)
(USD Millions except where noted)
1994 1995 1996
GDP 1,821.6 1,894.5 1,979.8
GDP Growth Rate (%) 3.2 4.0 4.5
GDP Per Capita 414.0 417.1 423.0
Government Spending
as % of GDP 39.9 37.2 35.0
Inflation (Percent) 12.4 10.0 10.0
Unemployment (Percent) 23.5 24.9 24.0
Foreign Exchange Reserves
(Gross) 139.6 184.2 349.5
Average Exchange Rate for $1.00 7.0 7.6 8.5
Foreign Debt 11,700.0 12,150.0 12,600.0
Debt Service Ratio (Ratio
of Principal and Interest
Payments on Foreign Debt
to Foreign Income) 0.42 0.49 0.50
Economic/Military Assistance 91.0 22.8 33.3
from U.S. (FY) (est) (req.)
-- APPENDIX C -- TRADE (FOR 1994, 1995, AND 1996 ESTIMATE) (In USD
Millions except where noted)
1994 1995 1996
Total Country Exports 351.0 428.0 467.0
Total Country Imports 785.0 858.0 875.0
U.S. Exports to Nicaragua 185.5 260.0 265.0
U.S. Imports from Nicaragua 166.8 167.5 172.0
--APPENDIX D -- INVESTMENT
There are no reliable local statistics concerning foreign direct
investment in Nicaragua. According to U.S. Department of Commerce
estimates, as of year-end 1993, U.S. direct investment in Nicaragua
amounted to $108-116 million. We believe U.S. capital represents at
least half of all foreign direct investment.
--APPENDIX E -- U.S. AND COUNTRY CONTACTS
--U.S. EMBASSY TRADE PERSONNEL
Department of State
Chief, Economic/Commercial Section, Sandra Dembski
U.S. Embassy Managua
Unit 2703 Box 2
APO AA 34021
TEL: (505-2) 662291/666010, ext. 226;
FAX: (505-2) 669056
Economic/Commercial Officer Nancy Nelson
U.S. Embassy Managua
Unit 2703 Box 2
APO AA 34021
TEL: (505-2) 662291/666010, ext. 226;
FAX: (505-2) 669056
Commercial Assistant Javier Torres
U.S. Embassy Managua
Unit 2703 Box 2
APO AA 34021
TEL: (505-2) 666010, ext. 225;
FAX: (505-2) 669056
Department of Agriculture
Regional Agriculture Attache Scott Bleggi
U.S. Embassy San Jose
APO AA 34020
TEL: (506) 220-3939; FAX: (506) 220-2305
Agricultural Assistant Silvio Castellon
U.S. Embassy Managua
Unit 2703 Box 2
APO AA 34021
TEL: (505-2) 666010, ext. 343;
FAX: (505-2) 669056
Department of Commerce
Partnership Post Commercial Attache Maria Galindo
U.S. Embassy San Jose
APO AA 34020
TEL: (506) 220-2454; FAX: (506) 220-4783
--WASHINGTON-BASED USG COUNTRY CONTACTS
Department of State
Nicaragua Desk Economic Officer Judy Beulow
ARA/CEN Rm 4915 Main State
Washington, D.C. 20520
TEL: (202) 647-3727; FAX: (202) 647-2597
Nicaragua Desk Political Officer Bill Nemeth
ARA/CEN Rm 4915 Main State
Washington, D.C. 20520
TEL: (202) 647-1510; FAX: (202) 647-2597
Department of Commerce
Nicaragua Country Desk Officer Mark Siegelmann
Office of Latin America/Caribbean Basin Division
Rm 3021 - 14th & Constitution Avenue NW
Washington, D.C. 20230
TEL: (202) 482-5680; FAX: (202) 482-4726
Multilateral Development Bank Office
Director Brenda Ebeling
14th and Constitution NW
Washington, D.C. 20007
TEL: (202) 482-3399; FAX: (202) 492-5179
TPCC Trade Information Center
TEL: (800) USA-TRADE
Latin American/Caribbean Business Development
Center
(U.S. Department of Commerce)
Agribusiness Development Ofcr Thomas E. Wilde Jr.
Room H3203
Washington, D.C. 20230
TEL: (202) 377-0703; FAX: (202) 377-2218
Department of the Treasury
Nicaragua Country Desk Officer Anthony Marcus
15th & Pennsyvlania Avenue
Rm 5413
Washington, D.C. 20220
TEL: (202) 622-1218; FAX: (202) 622-1273
Overseas Private Investment Corporation (OPIC)
Insurance Officer Gustavo de Lucio
1100 New York Avenue NW
Washington, D.C. 20527
TEL: (202) 336-8777; FAX: (202) 408-5142
U.S. Customs Service
Attache for Central America/Caribbean
Robert J. Fernandez
10800 Sunset Drive, Suite 380
Miami, FL 33173
TEL: (305) 596-6405; FAX: (305) 596-1973
Department of Agriculture
International Economist Leslie O'Connor
Inter-Americas Division/International Trade Policy
Foreign Agriculture Service
USDA Rm 5524 South
Washington, D.C. 20250
TEL: (202) 720-1277; FAX: (202) 690-2709
Foreign Agricultural Service
Trade Assistance and Promotion Office
TEL: (202) 720-7420
--AMCHAM AND/OR BILATERAL BUSINESS COUNCILS
Nicaraguan American Chamber of Commerce in Miami
President Silvio Solorzano Pellas
444 Brickell Avenue, Suite 51-168
Miami, FL 33131
TEL: (305) 448-2495; FAX: (305) 375-0362
Assoc. of American Chambers of Commerce in Latin America
(AACCLA)
President David Ivy
1615 H Street NW
Washington, DC 20062-2000
TEL: (202) 463-5485; FAX: (202) 463-3126
Camara de Comercio Americana de Nicaragua
(Nicaraguan/American Chamber of Commerce)
Executive Director Susan de Aguirre
Transfer UNAN 500 mts. al sur
Managua, Nicaragua
TEL: (505-2) 673099, 673633; FAX: (505-2) 673098
--NICARAGUAN TRADE OR INDUSTRY ASSOCIATIONS IN KEY SECTORS
Centro de Exportaciones e Inversiones (CEI)
(Center for Exports and Investment)
Executive Director Hugo Paguaga
Edificio Oscar Perez Casar
Managua, Nicaragua
TEL: (505-2) 783075/783079; FAX: (505-2) 783129
Camara de Comercio de Nicaragua (CACONIC)
(Chamber of Commerce of Nicaragua)
General Manager (Lic.) Róger A. Cerda
Frente al Edificio de la Lotería Naciónal
Managua, Nicaragua
TEL: (505-2) 671946, 670718, 674713;
FAX: (505-2) 780820
Camara de Industrias de Nicaragua (CADIN)
(Chamber of Industries of Nicaragua)
President Alberto Chamorro;
Secretary (Dr.) Gilberto Solis
De los semáforos de Plaza España 300 mts al sur
Donde fue TURNICA
Managua, Nicaragua
TEL: (505-2) 668847-51; FAX: (505-2) 661891
Asociacion de Distribuidores de Productos de Consumo de
Nicaragua
(Association of Consumer Product Distributors)
General Manager América de Urtecho
Km 4-1/2 Carretera Norte, Módulo 12,
Oficentro Norte, Antiguo local SOVIPE
Managua, Nicaragua
TEL: (505-2) 41230, 41330, 495108;
FAX: (505-2) 42563
Camara de Construcción de Nicaragua
(Nicaraguan Chamber of Construction)
President (Ing.) Mario Montenegro C.
Colonia Mántica
Ferretería Roberto Reyes
25 mts abajo 75 mts al sur
Managua, Nicaragua
TEL: (505-2) 666525/528; FAX: (505-2) 668169
Camara de Urbanizadores y Desarrolladores
(Chamber of Real Estate Developers)
President (Arq.) Eddy Jerez Paguaga
Centro Commercial Zumen, Módulo No. 5,
Contiguo a KODAK
Managua, Nicaragua
TEL: (505-2) 651947; FAX: (505-2) 651893
Camara de la Pesca de Nicaragua (CAPENIC)
(Fishing Chamber)
General Manager Miguel Marenco
Camino de Oriente, Edificio B, Módulo 6
Managua, Nicaragua
TEL: (505-2) 787091; FAX: (505-2) 787054
Camara Minera de Nicaragua (CAMINIC)
(Mining Chamber)
Executive Director Frank Mena
Bo. Bolonia, del Porton del Retiro 1 c. al lago
Managua, Nicaragua
TEL: (505-2) 669623; FAX: (505-2) 669727
Consejo Superior de Empresas Privadas (COSEP)
(High Council for Private Enterprise)
President (Ing.) Gilberto Cuadra
Executive Director (Dr.) Orestes Romero Rojas
TELCOR Zacarías Guerra 175 mts abajo
Managua, Nicaragua
TEL: (505-2) 282030/42; FAX: (505-2) 282041
Comite Nacional de Productores de Azucar (CNPA)
(National Sugar Producers Committee)
General Manager Noel Chamorro
Sandy's Carretera a Masaya 1 c. arriba
1 c. al sur, Casa #51
Colonial Las Robles
Managua, Nicaragua
TEL: (505-2) 678202; FAX: (505-2) 670197
Union de Productores Agropecuarios de Nicaragua
(UPANIC)
(National Union of Agricultural Producers)
Executive Secretary (Ing.) Alejandro Raskowsky
Reparto San Juan No. 300
Managua, Nicaragua
TEL: (505-2) 783382-84; FAX: (505-2) 782587
Asociación Nicaragüense de Productores y Exportadores de
Productos No Tradicionales (APENN)
(Nicaraguan Association of Producers and Exporters of Non-
Traditional Products)
General Manager Patrick Bolaños D.
De donde fue Rest. Terraza 1 c. al lago
Managua, Nicaragua
TEL: (505-2) 665038; FAX: (505-2) 665039
Camara Nacional de Turismo
(National Chamber of Tourism)
Executive Director (Dr.) Edgard Zarría Zamora
Contiguo al Ministerio de Turismo
Managua, Nicaragua
TEL: (505-2) 665071; FAX: (505-2) 665071
Federacion de Asociaciones Ganaderos de Nicaragua
(FAGANIC)
(Cattle Association)
President (Dr.) Pablo Sierra Ch.
Entrada Principal, Centro Comercial Managua
Managua, Nicaragua
TEL: (505-2) 72976/72947; FAX: (505-2) 670084
Asociacion de Bancos Privados de Nicaragua
(ASOBANP)
(Private Banking Association)
President Jose Felix Padilla
Interbank, Apdo 3107
Managua, Nicaragua
TEL: (505-2) 785959; FAX: (505-2) 783535
Asociacion de Representantes de Casas Extranjeras
de Nicaragua (ARCEN)
(Association of Foreign Business Representatives)
President (Ing.) Ernesto A. Cuadra Jr.
TEL: (505-2) 780077/780389/780390;
FAX: (505-2) 785628
Union Nicaraguense de Pequeña y Mediana Empresas
(UNIPYME)
(Small and Mid-Sized Business Association)
President William Tefel
Ciudad Jardin L-16
Managua, Nicaragua
TEL: (505-2) 497695; FAX: (505-2) 490662
Confederacion de Asociaciones Profesionales de
Nicaragua (CONAPRO)
(Confederation of Professional Associations)
President (Ing.) Carlos Lopez Barrios
Antiguo Restaurante Terraza 1 c. al sur,
175 varas al oeste
Managua, Nicaragua
TEL: (505-2) 664065/663349; FAX: (505-2) 664650
Instituto Nicaraguense de Desarrollo (INDE)
(Nicaraguan Development Institute)
President (Dr.) Carlos Quiñones
Carretera Sur Km. 14, 300 mts arriba
Managua, Nicaragua
TEL: (505-2) 657712/657696; FAX: (505-2) 658747
Asociacion Nicaraguense de Ingenieros y
Arquitectos (ANIA)
(Association of Architects and Engineers)
President (Ing.) Rene Quesada Prado
Apdo 1408
Managua, Nicaragua
TEL: (505-2) 43796
Camara Nacional de la Mediana y Pequeña Industria
(CONAPI)
(Small and Mid-Sized Industries Chamber)
President (Lic.) Antonio Chavez
TEL: (505-2) 784892/75910
--NICARAGUAN GOVERNMENT AGENCIES
Ministerio de Agricultura y Ganadería (MAG)
(Ministry of Agriculture)
Minister (Ing.) Dionisio Cuadra
Km 8-1/2 Carretera a Masaya
Managua, Nicaragua
TEL: (505-2) 760233/74099; FAX: (505-2) 760943
Ministerio de Construcción y Transporte (MCT)
(Ministry of Construction and Transportation)
Minister (Ing.) Pablo Vijil Icaza
Frente al Estadio Nacional
Managua, Nicaragua
TEL: (505-2) 282061/283698; FAX: (505-2) 24176
Ministerio de Cooperación Externa
(Ministry of External Cooperation)
Minister (Dr.) Erwin Kruger
Casa Ricardo Morales Avilés
Managua, Nicaragua
TEL: (505-2) 281285/281171; FAX: (505-2) 282693
Ministerio de Economía y Desarrollo (MEDE)
(Ministry of Economy and Development)
Minister (Ing.) Pablo Pereira Gallardo
Frente al Camino de Oriente
Managua, Nicaragua
TEL: (505-2) 670002/670009; FAX: (505-2) 670095
Ministerio de Finanzas (MIFIN)
(Ministry of Finance)
Minister (Dr.) Emilio Pereira Alegría
Frente a la Asamblea Nacional
Managua, Nicaragua
TEL: (505-2) 285043/227061; FAX: (505-2) 223033
Ministerio de Salud
(Ministry of Health)
Minister (Lic.) Martha Palacio Fernández
Complejo - Concepción Palacios
Managua, Nicaragua
TEL: (505-2) 897811/897441; FAX: (505-2) 897483
Banco Central de Nicaragua
(Central Bank of Nicaragua)
Minister-President (Dr.) José Evenor Taboada
Edificio Banco Central
Managua, Nicaragua
TEL: (505-2) 652051-650460; FAX: (505-2) 652272
Ministerio de Turismo (INTURISMO)
(Ministry of Tourism)
Minister (Lic.) Fernando Guzmán Cuadra
Antojitos 1 c. abajo y 1 c. al sur
Managua, Nicaragua
TEL: (505-2) 281238/281337; FAX: (505-2) 281187
Ministerio de Recursos Naturales (MARENA)
(Ministry of Natural Resources)
Minister (Lic.) Milton Caldero C.
Km. 12-1/2 Carretera Norte
Managua, Nicaragua
TEL: (505-2) 631271/631323; FAX: (505-2) 631274
TELCOR
(Telephone Company)
Director (Ing.) Rolando Rivas Hupper
TELCOR Villa Fontana
Managua, Nicaragua
TEL: (505-2) 784444; FAX: (505-2) 781818
Compania Nicaragüense de Energia (ENEL)
(Nicaraguan Energy Company)
Ministro-Director (Ing.) Emilio Rappaccioli
INE Central
Managua, Nicaragua
TEL: (505-2) 674103/672688; FAX: (505-2) 674377
Instituto Nicaragüense de Energia (INE)
(Nicaraguan Energy Institute)
Director (Ing.) Jose Ley Lau
INE Central
Managua, Nicaragua
TEL: (505-2) 282057-58; FAX: (505-2) 227052
--NICARAGUAN MARKET RESEARCH FIRMS
Grupo Empresarial Nicaraguense, S.A.
Director General Nelson Estrada Solorzano
Costado Sur Iglesia Las Sierritas Sto. Domingo
Apdo 102-A
Managua, Nicaragua
TEL: (505-2) 785013-14/72861/72862;
FAX: (505-2) 760583
CID/GALLUP
Sr. Federico Denton
Del Cartel, 2 c. abajo
Managua, Nicaragua
TEL: (505-2) 783132; FAX: (505-2) 70578
CONSULTA, S.A.
Bosque de Altamira, B-67
Apdo 2085
Managua, Nicaragua
TEL: (505-2) 786289/73898; FAX: (505-2) 786287
--NICARAGUAN COMMERCIAL BANKS
Banco de la Producción (BANPRO)
Gerente General Arturo Arana U.
Plaza Libertad, Contiguo a Metrocentro
Apdo 2309
Managua, Nicaragua
TEL: (505-2) 782508-9/783275/783278/784188-90;
FAX: (505-2) 784113
Banco Nicaraguense de Industria y Comercio (BANIC)
Gerente General Marco Narvaez Baca
Managua, Nicaragua
TEL: (505-2) 670997; FAX: (505-2) 672127
Banco Nacional de Desarrollo (BANADES)
Gerente General Dionisio Chamorro
Apdo 328-1447
Managua, Nicaragua
TEL: (505-2) 671771-9; FAX: (505-2) 674222
Banco de Credito Centroamericano (BANCENTRO)
Gerente General Eduardo Montealegre R.
Edificio BANCENTRO
Km. 4-1/2 Carretera Masaya
TEL: (505-2) 782777; FAX: (505-2) 786001
Banco de Exportación (BANEXPO)
Gerente General Gilberto E. Wong
Centro Comercial Metrocentro
Managua, Nicaragua
TEL: (505-2) 73087/73094/73095/73096/73101/;
FAX:(505-2) 73154
Banco de America Central (BAC)
Gerente General Carlos Matus Tapia
Apdo 2304
Managua, Nicaragua
TEL: (505-2) 670220-670223/73697/73624/73626;
FAX: (505-2) 670224
Banco Popular
Gerente General Jose Alberto Navarro
Centro Comercial Nejapa
Managua, Nicaragua
TEL: (505-2) 650331; FAX: (505-2) 651337
Banco Mercantil
Gerente General Oscar Martin Aguado A.
Plaza Banco Mercantil
Managua, Nicaragua
TEL: (505-2) 668228-668233; FAX: (505-2) 668024
Banco Intercontinental (Interbank)
Gerente General Jose Felix Padilla
Apdo 3107
Managua, Nicaragua
TEL: (505-2) 785959; FAX: (505-2) 783535-783537
Banco de Prestamos (BANPRES)
Gerente General Norma Lopez
Esquina Opuesta Hotel Intercontinental
Managua, Nicaragua
TEL: (505-2) 223046/223048/223052;
FAX: (505-2) 223057
Banco Europeo de Centro America, S.A. (BECA)
Gerente General Chale Espinosa A.
Apdo 188
Managua, Nicaragua
TEL: (505-2) 224791; FAX: (505-2) 783827
Banco del Campo
Gerente General Luis Morales Uriarte
Edificio Interplaza
Pista La Resistencia
Managua, Nicaragua
TEL: (505-2) 781236/39; FAX: (505-2) 781242
Banco de Cafe de Nicaragua (BANCAFENIC)*
Gerente General Jose Arias
INFESA, del Hospital Militar 100 vrs. abajo
Prolongación Avenida Bolivar
Managua, Nicaragua
TEL: (505-2) 668075; FAX: (505-2) 668068
Caley Dagnall Bank*
Gerente General Esteban Duque Estrada
Km. 3 Carretera Sur
Managua, Nicaragua
TEL: (505-2) 680068; FAX: (505-2) 680069
*Scheduled to open mid-1995.
--MULTILATERAL DEVELOPMENT BANKS
Inter-American Development Bank
Resident Representative Martin Stabile
Km. 4-1/2 Carretera a Masaya
Apdo. 2412
Managua, Nicaragua
TEL: (505-2) 670831/670832/670833;
FAX: (505-2) 673469
International Monetary Fund
Resident Representative Jose Gil-Diaz
Banco Central de Nicaragua
Km. 7 Carretera Sur
Managua, Nicaragua
TEL: (505-2) 651843; FAX; (505-2) 651923
--APPENDIX F -- MARKET RESEARCH
--LIST OF AVAILABLE AND UPCOMING DOC/ISAS AND IMIS
IMI: Overview of Nicaraguan Telecommunications Industry: The
Private Sector, Managua 006373, 11/21/94
IMI: Industry, The Environment, and the Law, Managua 000918,
02/22/95
IMI: Overview of Nicaraguan Mining Sector, Managua 001752,
04/11/95
IMI: Overview of Nicaragua's Fisheries Sector, Managua 002065,
05/02/95
--LIST OF USDA/FAS/COMMODITY REPORTS AND MARKET BRIEFS
Key agricultural commodity reports on Nicaragua by USDA/FAS follows:
-- Trade Leads, October 1994, Report: NU4014
-- Cotton Report, March 1995, Report: NU5001
-- Sugar Annual Situation, April 1995, Report: NU5002
--APPENDIX G -- TRADE EVENT SCHEDULE
EXPICA '95 (Central American Livestock
and Commerce Exposition) July 1995
AGRICULTURAL AND FOOD PROCESSING
MACHINERY January 1996
Because trade event schedules may change, firms should consult the
Export Promotion Calendar onthe National Trade Data Base (NTDB) or
contact Embassy Managua for the latest information.
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