Despite Ortega’s Posturing, Nicaragua Still Safe, Attractive, and Attention-Worthy
Date: 12/21/2007
December 21, 2007
Managua, Nicaragua
It’s been an interesting year (to say the least) in Nicaragua. In January, Sandinista leader Daniel Ortega was inaugurated as the country’s president. For better or worse, he’s been finding his way through the political world since then.
To the consternation of many, Ortega buddied up to Venezuelan President Hugo Chavez and the president of Iran, Mahmoud Ahmadinejad. In a fiery speech before the United Nations this past fall, Ortega defended Iran and Cuba and lashed out at the U.S. government. At home, many of his constituents expressed embarrassment and frustration.
But…perhaps you shouldn’t judge a country by its president. Good things have happened in Nicaragua this year, too, and for real estate investors, the country still offers some of the best opportunities in the hemisphere.
Consider that tourists are continuing to visit Nicaragua in increasing numbers. (My husband and I had a difficult time finding a house to rent during 2007’s winter season.) Tourism has even surpassed coffee exportation, Nicaragua’s next leading revenue source, by over $71 million ($189 million versus $260 million for 2006). Surfers, especially, are finding their way to Nicaragua—the country has been named one of the top five surfing destinations in the world by Surf Magazine.
And the World Bank feels good enough about prospects in Nicaragua to help the country buy back more than $1.3 billion of its foreign commercial debt at 4.5 cents on the dollar. The agreement "will put an end to various legal actions filed against Nicaragua by its commercial creditors and will contribute to the normalization of its relationship with the international financial community," Finance and Public Credit Minister Alberto Guevara said.
Still, those in the real estate sector in Nicaragua have experienced some unsteady times this year. Thanks to the election of Ortega, foreign buyers of vacation and retirement homes have been reluctant to plunk down money in the country,­ and sales have been slow. Some investors, though, say this makes for an optimal time to buy real estate in Nicaragua, since real estate sellers are more apt to accept lower prices.
As 2007 draws to a close, Nicaragua remains one of the safest countries in Central America and one of those most worthy of attention by foreign visitors and expat residents. The pace is slow, the landscapes are beautiful, the people are friendly, and the opportunities are many.
Thank you for reading Nicaragua First Alert this year. We wish you a warm and happy holiday season.
Your Latin America Insider,
P.S. As we write this, we are waiting to see whether U.S. citizen Eric Volz will be released from prison in Nicaragua. As you may remember, he was accused of the November 2006 slaying of his girlfriend, Doris Jiménez, in San Juan del Sur. Volz proclaimed his innocence from the beginning, and evidence seemed to back up his claims that he was two hours away in Managua when the slaying took place. On Monday, a Nicaraguan appeals court overturned his 30-year sentence and ordered his immediate release. The prosecutor in the Volz trial is now taking the case to Nicaragua’s Supreme Court, and has asked that Volz be held until the Supreme Court rules.
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