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- Newsgroups: misc.activism.progressive
- Path: sparky!uunet!usc!wupost!mont!pencil.cs.missouri.edu!rich
- From: rich@pencil.cs.missouri.edu (Rich Winkel)
- Subject: NICARAGUA: STALLED U.S. AID HURTING ECONOMY
- Message-ID: <1992Sep1.082323.445@mont.cs.missouri.edu>
- Followup-To: alt.activism.d
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- Nntp-Posting-Host: pencil.cs.missouri.edu
- Organization: PACH
- Date: Tue, 1 Sep 1992 08:23:23 GMT
- Approved: map@pencil.cs.missouri.edu
- Lines: 87
-
- /** reg.nicaragua: 111.0 **/
- ** Topic: IPS: Stalled US Aid **
- ** Written 11:58 am Aug 28, 1992 by hrcoord in cdp:reg.nicaragua **
- From: Human Rights Coordinator <hrcoord>
- Subject: IPS: Stalled US Aid
-
- /* Written 12:09 am Aug 28, 1992 by newsdesk in cdp:ips.englibrary */
- Copyright Inter Press Service 1992, all rights reserved. Permission to re-
- print within 7 days of original date only with permission from 'newsdesk'.
-
- Title: NICARAGUA: STALLED U.S. AID HURTING FRAGILE ECONOMY
-
- managua, aug 25 (ips) -- the withholding of over 100 million
- dollars in u.s. aid has begun to affect the nicaraguan economy,
- the president of the country's central bank announced tuesday.
-
- so far, the government has been able to compensate for the
- crisis by obtaining stop-gap credits and using funds programmed
- for the final trimester of 1992, silvio de franco said.
-
- de franco said that nicaragua was pressing for the release of
- the funds, frozen since may, and added that the government ''is
- preparing legal and administrative policies to prevent any future
- delays'' in the aid process.
-
- the 104 million dollars was frozen by a group of u.s.
- congressmen, led by conservative senator jesse helms, who are
- demanding the return of land confiscated from u.s. citizens
- following the 1979 sandinista revolution.
-
- the congressmen also object to continued sandinista influence
- in the government, army and police force.
-
- in response, the government of president violeta chamorro has
- promised to address all land ownership claims and has announced a
- shake-up in the police force set to take effect on september 5.
-
- the president of the central bank said the aid is needed ''to
- pay debts owed international organisms,'' including the
- international monetary fund (imf) and world bank.
-
- ''the aid is a determininant factor in maintaining our
- economic rhythm,'' he said.
-
- de franco said he hopes the aid will be released in september,
- adding that the delay has already generated economic problems.
-
- the official pointed to the rise in exchange rate for the
- dollar at money exchange offices and on the street.
-
- while the government banks have maintained the official five
- to one exchange rate, on the open market the rate has reached as
- high as 5.5 cordobas to the dollar.
-
- ''speculation, provoked by the uncertainty over the u.s. aid,
- is controlling the price of the dollar,'' he said.
-
- de franco said, however, that the government had no intention
- of adjusting the official rate, as it would lead to inflation.
-
- reducing nicaragua's rampant inflation is one of the current
- government's proudest achievements. chamorro's administration was
- able to reduce inflation to 4.8 percent in the first six months
- of 1992, from an annual rate of 13,000 percent in 1990.
- (more/ips)
- ----
-
-
- nicaragua: stalled (2)
-
- for the moment, nicaragua has been able to supplement the
- stalled aid with a recently authorised loan of 55 million dollars
- from the interamerican development bank (idb).
-
- in addition, the central american bank for economic
- integration is supporting economic rehabilitation, with loans to
- the industrial and agricultural sectors aimed at promoting the
- production of non-traditional products.
-
- however, de franco said that credits authorised by
- international organisms often ''are not used to their potential''
- because of insufficient infrastructure and a lack of efficiency.
- (enr/ips/sp/trd/nz/cs/eli/92)
- ----
-
-
- ** End of text from cdp:reg.nicaragua **
-