May 2008
Issue: 2008 - 3
Nica - Newsletter
Business and Economy
- Nicaragua sees foreign direct investment up 18 pct
- International Textile Group’s Cone Denim Celebrates Nicaragua Opening
- Nicaragua more pro-oil than Florida and California
- Nicaragua factory rolls cigar of the year
- Ortega’s Friendship Help U.S. Relations
- Ortega Praises US Millennium Program!
- Top 5 Latin American Real Estate Markets
Business and Economy
Nicaragua sees foreign direct investment up 18 pct
MANAGUA, Mar 25 (Reuters) - Nicaragua's government said on Tuesday it expects to increase foreign direct investment by 18 percent this year, about the same rate as in 2007, with strong growth in textiles and agriculture.
Nicaragua reported foreign direct investment of $335 million last year.
Foreign firms are likely to invest in adding value to textile and agriculture goods exported by Nicaragua, government official Javier Chamorro told reporters.
International Textile Group’s Cone Denim Celebrates Nicaragua Opening
By International Textile Group
International Textile Group's ("ITG")(OTC Bulletin Board: ITXN) Cone Denim has announced the opening of its Nicaragua operation. Located outside Managua, Nicaragua in the Jorge Bolanos Abaunza Textile Park, the Cone Denim Nicaragua (CDN) facility held its Grand Opening Ceremony on April 22.
A fully vertical operation, CDN is equipped with the most modern manufacturing equipment to process raw cotton through finished denim fabric. The facility has a capacity of approximately 28 million yards per year and will employ about 850 people.
"ITG Cone Denim is leading the industry as the first global denim fabric manufacturer to have operations in Central America," said Wilbur L. Ross, Jr., Chairman of ITG. "We recognized early on the significance of this region to our customers and the competitive value it brings.
We are excited to be a part of the growth and new opportunities here. ITG Cone Denim is known throughout the world as the leader in denim innovation and quality and is a leading supplier to the world's top denim brands. Our Central America platform allows us to further expand our innovative products and total supply solutions to customers worldwide."
Speaking at the Ceremony was Mr. Daniel Ortega S., President of Nicaragua; General (R) Alvardo Baltodano C, Technical Secretary of the National Free Zone Commission for Nicaragua; Mr. Paul Trivelli, US Ambassador to Nicaragua; Joseph L. Gorga, President & CEO for ITG; David L. Wax, Managing Director for WL Ross & Co. and a member of ITG's Board of Directors; and Charles Matthew Haynes, Sr. Vice President Operations for the Americas region for Cone Denim. Others attending the ceremony included Assistant US Trade Representative for the Americas Everett Eissenstat; ITG Board Director Ambassador Stephen W. Bosworth; ITG Board Director Dr. Daniel D. Tessoni; and ITG Cone Denim President Thomas E. McKenna.
"Our focus over the past year has been on expanding our footprint and putting in place the strategic pieces of an extensive global supply chain," said Joseph L. Gorga, President & CEO. "CDN provides our customers advanced manufacturing capabilities in a cost-competitive platform. The Nicaragua location combined with our denim manufacturing capabilities in the US, Mexico, and China and partnerships in India and Turkey allows ITG Cone Denim the resources and flexibility to service the diverse global supply needs of our customers."
International Textile Group, Inc. is a global, diversified textile manufacturer that produces automotive safety, apparel, government uniform, technical and specialty textiles. ITG was formed by WL Ross in 2004 and operates five primary business units: Automotive Safety, Cone Denim, Burlington WorldWide (apparel fabrics), Burlington House (interior fabrics) and Carlisle Finishing. The Company employs approximately 12,000 people worldwide with operations in the United States, Mexico, China, Germany, Romania, the Czech Republic, Poland, South Africa, Nicaragua and Vietnam.
Established in 1891, ITG Cone Denim has been a leading supplier of denim to top denim apparel brands for over 100 years. Known for its innovation, authenticity, quality and service, Cone Denim maintains operations in the United States, Mexico, Turkey, China, and Nicaragua to provide broader service and flexibility to customers worldwide.
Certain statements contained in this press release may constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements may relate to, among other things, ITG's future plans, revenue, earnings, outlook, expectations and strategies, and are based on management's current beliefs. Forward looking statements involve a number of risks and uncertainties, including changes to the facts or assumptions underlying these statements. ITG's actual results may differ materially from those expressed or implied in these forward looking statements due to various risks, uncertainties or other factors. These factors may include changes in general economic conditions, downturns in the automotive industry, decreases in the demand for textile products, increases in constituent raw material prices, difficulties in executing business strategies and other risk factors described in ITG's filings with the SEC from time to time. ITG does not undertake any obligation to update any forward looking statements.
SOURCE International Textile Group
Nicaragua more pro-oil than Florida and California
Thomas Lifson
Even Daniel Ortega, the leftist president of Nicaragua, understands the importance of offshore oil exploration in the oil-rich Gulf of Mexico waters. The International Herald-Tribune reports:
Nicaragua has signed a contract with a unit of U.S.-owned MKJ Xploration to explore and develop oil and natural gas fields off its Caribbean coast, officials said Wednesday.
Under the six-year deal, a subsidiary of the Metairie, Louisiana-based company will search for oil about 60 miles (100 kilometers) from the shore in Caribbean waters. It will be granted a 30-year contract to produce oil and natural gas if it finds anything, a government news release said.
In contrast to fomrer Communist Ortega, both Florida and California do not permit new oil development in their offshore waters, which hold great promise. Along with ANWR and federal lands in the West, these potentially very rich oil fields are out of bounds for commercial oil development, so no oil company is willing to spend the money to gain further knowledge of the extent of the oil potential. When anti-oil critics dismiss ANWR as supplying less than a year's worth of oil for America, they refer to only the potential so far explored. The full extent of the deposits in these areas remains unknown.
Oil drilling technology has vastly improved since the late 1960s, when offshore wells in the Santa Barbara Channel leaked oil and focused the nation's attention of offshore wells as hazardous. And despite heartbreaking pictures of waterfowl mired in crude, the experience of cleaning up oil spills in fragile environments like Prince William Soiund in Alaska, where the Exxon Valdez spilled massive amounts of oil, reveals that recovery is swifter and more complete than doomsayers wish to believe.
Hat tip: Joseph Crowley
Nicaragua factory rolls cigar of the year
By Blake Schmidt
Nica Times Staff bschmidt@ticotimes.net
The best-tasting cigar in the world last year was rolled in the Padrón factory in Esteli in northern Nicaragua, according to the most recent rankings from Cigar Aficionado magazine.
The magazine named the Padrón Serie 1926 No. 9 the best smoke in 2007 in its most recent top-25 cigar ranking.
The cigar is rolled under the supervision of José Orlando Padrón, who started making cigars for fellow Cuban émigrés in Miami after fleeing his native Cuba. The Miami stogie guru began growing tobacco in Nicaragua in the 1960s when he couldn't find the blend he was looking for in the United States, says Padrón spokesman Cesar Gadea.
"It's the blend, the construction, quality control. That's what it is. There are a lot of other companies (in Nicaragua ) that make cigars, but we're still the only one that has been chosen for the No. 1 cigar," Gadea said in a phone interview from the family-run company's Miami office.
The Padróns have never finished out of the top three in Cigar Aficionado's Top 25 tastings, and this is the second time one of their cigars has been named the No. 1 cigar of the year.
"They are clearly at the top of their game," Cigar Aficionado said of the Padróns.
Ortega’s Friendship Help U.S. Relations
Ambassador Arturo Cruz says Washington considers Ortega a man of his word
By Tim Rogers
MANAGUA, Nicaragua
Despite historical and ideological differences, President Daniel Ortega has built a solid working relationship with the U.S. government based on personal trust and close friendships with several heavy hitters in the Bush administration, according to Nicaragua's Ambassador to the United States.
Ambassador Arturo Cruz Jr. says that a year after presenting his credentials in Washington, D.C., he is confident that the United States for the first time ever is working to normalize relations with the Sandinista government.
"We are in the process of building a relationship of more confidence," Cruz said in a private meeting of business leaders belonging to the Nicaraguan-American Chamber of Commerce (AMCHAM).
While the institutional foundation of the bilateral relationship is built on the Central American Free-Trade Agreement (CAFTA), the Millennium Challenge Account, private investment initiatives and even humanitarian efforts such as the Peace Corps, the relationship is also being held together by a new spirit of personal friendship with Ortega, Ambassador Cruz said.
Cruz, a tenured professor at INCAE business school in Managua, with a background of working with the Contras to destabilize the first Sandinista government, says it has been interesting to see how Ortega has befriended members of the Bush administration and how those friendships have helped diplomatically.
"It's very interesting the personal relationship that Ortega has with important members of U.S. political society," Cruz said. "The reality is that he has formed great and close friendships with Shannon [Thomas Shannon, assistant secretary of state for Western Hemisphere affairs], with Commerce Secretary [Carlos] Gutierrez, with [John] Danilovich of the Millennium Challenge Account, with [Robert] Mosbacher [president of the Overseas Private Investment Corporation (OPIC)], and with [Mike] Leavitt, the secretary of health and human services.
"The truth is," Cruz added, "that he has formed a good group that constantly maintains this personal relationship and commitment to permanent dialogue with Nicaragua."
The ambassador said that this "tremendous sympathy" for Ortega is due in part to the fact that the Nicaraguan president stands by his word – something that has won him political capital even among those who disagree with him on ideological grounds.
"In complicated moments, when he says he is going to do something, he does it," Cruz said, adding that Ortega's track record of holding to his word has earned him "the benefit of the doubt in complicated moments."
If it weren't for these personal friendships and trust, "it would be difficult otherwise to explain the stable relationship with the United States," Cruz said.
Understanding the Score
Ambassador Cruz said Nicaragua's situation of extreme poverty, poor infrastructure and weak government institutions has led to an "understanding" in Washington, D.C., about the domestic challenges facing Ortega.
"There is understanding about how difficult it is to govern Nicaragua, a country where 80% of the population lives on less than $2 a day, the infrastructure is in critical condition, including the electrical system, the budget is less than $2 billion and petroleum is at $100 a barrel," Cruz said. "From this perspective I think the political society in the U.S. says that if we can govern Nicaragua with a minimum of stability and within the framework of an electoral democracy, then that is already doing a lot."
Cruz said that understanding also helps some in the U.S. government to comprehend Ortega's relationship with Venezuela's Hugo Chávez, who is helping the country to meet its immediate resource demands.
Future Relations
The ambassador is confident that the U.S. policy of personal engagement will continue, at least in the near future. Unlike some who have expressed concern over Bush's recent nomination of Robert Callahan, a former aid to Contra war architect John Negroponte, as the next ambassador to Nicaragua, Cruz is optimistic.
"I think that when Ambassador Callahan comes in September, part of his mandate will be to establish for the first time a personal relationship with President Ortega and the Sandinista Front. They are going to try for the first time to normalize relations," Cruz said. "So I think this will be an important personal engagement to build confidence and then discuss public policy."
Outgoing U.S. Ambassador Paul Trivelli, for his part, acknowledged that the relationship with Ortega is based on engagement and communication.
"One continues to attempt to keep dialogue going with Ortega and the Sandinista government," Trivelli said.
Part of the normalization of relations with the U.S. government has to do with establishing ties at an executive level. Unlike the 1980s, when Ortega faced a bellicose Ronald Reagan White House and had to turn to U.S. civil society and sympathetic Democratic members of Congress, the Sandinista government is now prioritizing relations with the State Department.
"We have prioritized relations with the executive branch, the Department of State, and not so much so with Congress," Cruz said. "This was not the case in the '80s, obviously, because the executives were adversaries. But this government has very fluid relations with the State Department, and that is the priority."
Cruz said that Ortega's graciousness in receiving officials from the Bush administration – including a visit last week from John Feeley, the state department's director of Central American affairs who came to start negotiating the missiles for medical equipment deal Ortega proposed last year – is also helping to pave the way for more visits from high-level delegations in the future.
Soon to visit, the ambassador said, is a U.S. delegation of representatives from the departments of state, treasury, commerce, labor and health to work with their respective ministries here. Cruz said there is also the possibility of a visit by high-ranking members of U.S. Congress and top level trade and investment delegation that will be led by Secretary Gutierrez.
"In great part, one of the reasons for Gutierrez's insistence on doing this trip here is precisely because of the personal relationship that he has formed with President Ortega," Cruz insisted.
As for the next U.S. government, Cruz says he doesn't see any reason to believe that macro changes to U.S. foreign policy will affect relations with Nicaragua one way or another.
Pundits Agree
Even political analysts who are normally critical of Ortega are tipping their hats to his ability to maintain strong relations with the United States despite his anti-yanqui discourse and his revolutionary alliances.
Renowned analyst and ex-Foreign Minister Emilio Alvarez said that Ortega has continued to show a nimble ability to dance between rhetoric and reality, and between Venezuela and the United States. Surprisingly, he said, Ortega seems to have found a willing dance partner in the U.S. government.
"The U.S. is following Ortega's lead, and dancing well with him," Alvarez told The Nica Times. "Partners dance well when they don't step on one another's feet, and so far no one has done so."
Carlos Tünnermann, former Nicaraguan Ambassador to the United States under the first Sandinista government in the 1980s, said that the Ortega who delivers inflammatory anti-imperialist speeches in the plaza is different from the Ortega who courteously receives guests from the U.S. State Department.
The United States, Tünnermann said, is interested in the war on drugs, terrorism, free trade and a market economy – a checklist that the Ortega government is complying with.
"Ortega is intelligent not to break the relations in this sense," Tünnermann said.
Both Tünnermann and Alvarez agree that Ortega's juggling act could be upset in the event that Venezuela's Hugo Chávez pressures him to move beyond rhetoric and into conflict with Colombia or the United States.
"The East-West conflict of the Cold War is over, but Ortega has to be careful not to fall into a new North-South conflict," Tünnermann told The Nica Times.
"Ortega's dance would get a lot harder to coordinate with four dance partners," Alvarez added.
Ortega Praises US Millennium Program!
"We are thankful for this cooperation from the people of the United States and that we are going to unite efforts," as spoken in early February by President Ortega when he publicly lauded the US Millennium Challenge Account—a program designed by the US to revitalize the agricultural departments of Leon and Chinandega.
Ortega hosted the program’s President, John Danilovich, and together they traveled to these northwestern areas to assess the progress of the five year, $175 million program. Some of the specific goals of the Challenge Account include:
- Technical assistance and training for agricultural employees
- Infrastructure improvements, such as new roadways and irrigation systems
- Legalizing land titles for hundreds of Nicaraguan families
- Reduction of poverty, generation of employment opportunities
- Promotion of the export of agricultural products
Upon meeting with several leaders of small agricultural co-ops, it was readily apparent to Ortega and Danilovich that the program is producing the intended results. Some of the co-ops have doubled in size—and overall, the program has generated more than 2000 new jobs in Nicaragua between July, 2006, and December, 2007. Farmers have received needed assistance, materials and new roadways enabling them to get their products exported to destinations such as Honduras and El Salvador. Several hundred property titles have been cleared and during the week of Danilovich’s visit, more than 700 families were given secure claim to their property, according to the Nica Times .
The Millennium Challenge Account is yet another project that highlights US dedication to the economic development of Nicaragua. And it is this type of growth that contributes to the stabilization of Nicaragua’s economy, and boosts the attractiveness of Nicaragua as a tourist, investment and retirement destination.
Finally, President Ortega stated, "We are assuming a obligation to unite efforts, the people and government of the United States and the people and government of Nicaragua, in these programs that are humanitarian, in solidarity and to combat poverty……………
Long live the people of the United States!"
Could these statements signal a thaw? Let’s stay tuned……..
National Minimum Wage Increases
More than 800,000 Nicaraguan workers in various sectors of the labor force will be a little better off now than they were previously—thanks to the government, major labor unions and much of the private sector signing off on an agreement to increase the minimum wage by 12%, which became effective February 1, 2008.
While this wage hike will not be the answer to everyone’s economic needs, it will help several families to better afford the "canasta basica"—the grocery basket of basic goods—and it will bring some measure of relief in the buying power of several thousand families.
And the widespread cooperation in passing this legislation shows a general commitment to improving the lives of some of the country’s neediest workers—which in turn, contributes to the improvement of this nation’s economy.
Government Addressing Land-Reform
When the Sandinistas returned to office last year, one of their major goals was to address an acknowledged error of the first Sandinista administration of the 80’s—the lack of conveying proper title to property owners.
President Ortega announced plans to deliver more than 3,800 property deeds to impoverished families in both rural and urban areas over the next several months. The families that will benefit already live on the land for which they will receive proper title—thereby eliminating the legal battles and ownership confusion that historically troubled residents.
Ortega went on to say that the authorities have been "instructed to work fast to guarantee" that all families in Managua who do not currently have proper title become beneficiaries of this program.
This program, together with recent court decisions involving land ownership that ruled in favor of investors, will go a long way toward improving the quality of lives among residents—and it sends a clear message to the world, and in particular foreign investors, that land ownership in Nicaragua will be honored.
More Positive Press for Nicaragua
The Los Angeles Times ran a review of the recently published Cashing In on a Second Home in Central America by Tom Kelly, Rich Creekmore and Jeff Hornberger. After reading the book, the reviewer had this to say:
"But perhaps better deals are to be found in a potentially riskier Nicaragua -- yes, that Nicaragua" -- and it's in dispelling common notions about mysterious countries that this book excels…
"Nicaragua is reportedly the safest of all Central American countries today, according to a study by INCAE, the Harvard Business School affiliate in Managua, and strongly encourages tourism and foreign investment. Moreover, with prices along its Pacific Riviera one-fifth of those in already discovered Costa Rica, a 45-minute drive to the south, local experts claim that the second-home market is now mirroring the first wave of Costa Rican real estate investments by North Americans 20 years ago."
Those who spend time here discover what the authors have found: That many fears and misconceptions about the country are leftovers from a civil war that ended nearly two decades ago.
But the good news for investors is that these misconceptions have actually created an opportunity: They have kept land prices artificially low – on which savvy investors may capitalize. And those who’ve invested early are already poised to reap the rewards.
Nicaraguan Teachers Gain Ground
The Nicaragua Network Hotline reports that the government signed a new contract with 11 teachers’ unions on January 8. The new contract includes $1 million more than a contract signed last year – and the money is earmarked for improving teacher’s benefits, including retirement health care.
Nicaragua’s Minister of Education, Miguel De Castilla, said he believes the improvements in teacher benefits – some of which are being introduced for the first time in this contract – will result in higher quality education in the country.
… And So Do Students
The Nicaragua Network Hotline reports that the Education Ministry is approaching its goal of enrolling 1.3 million students in Nicaragua’s schools this year. That’s a jump of 100,000 over last year’s numbers.
The ministry has eliminated fees that prevented the country’s poorest children from attending school. They also are providing free school uniforms, backpacks and other supplies to those who can’t afford them. Even children without birth certificates are permitted to enroll.
Because enrollments are being held open until March – to allow time for coffee pickers’ children to enroll at the end of the harvest season – the ministry’s 1.3 million goal appears within reach.
As educational opportunities become available to the entire populace, and the country as a whole becomes better educated, Nicaragua will appeal to even more foreign enterprises that offer or require skilled labor—thereby creating more jobs, improving the economy and perpetuating Nicaragua’s appeal around the globe.
Nicaragua Ends Power Rationing
Thanks to three resources being added back into the power production mix, Emilio Rappaccioli, Minister of Mines and Energy, recently announced an end to electricity rationing.
The geothermal plant at Ormat/Momotomba, which has been down for maintenance and repairs, should be back on line by the time you read this. The hydroelectric plant at Apanas Lake should also be producing about 50% more power than it has in recent months.
And, finally, two plants powered by sugar cane residue are slated to provide about 60 MW total throughout the sugar cane harvest season. Fast-growing eucalyptus will be used for fuel during the off-season.
Meanwhile, backed by aid from Taiwan, Venezuela and Cuba, two brand new power plants are slated to go online in March and September of next year.
These advances will result in a more widespread supply of electricity, as well as fewer power outages into the foreseeable future-- adding to Nicaragua’s appeal as a viable investment and retirement destination.
Pact with Iceland Improves Nicaragua’s Power Outlook
Energy Minister, Rappaccioli, also recently traveled to Iceland to sign an energy development deal with the island nation’s ICEIDA organization (Iceland International Development Agency).
What do a tropical country and a sub-arctic island have in common? Geothermal potential. Iceland is the world’s leading producer of geothermal power – and geothermal technology. And Nicaragua – like Iceland – has frequent volcanic activity.
Geothermal energy is derived by trapping the heat produced by molten rock (magma) within the cavities of volcanoes. The magma – and the heat – are close to the earth’s surface in areas of volcanic activity, allowing scientists to tap into this energy source—easily and at a relatively low cost.
ICEIDA will provide the technology and support necessary for Nicaraguan scientists to develop more geothermal power here. The entire project is valued at approximately $4 billion.
This alternate energy source deal is a tremendous shot in the arm for Nicaragua—a country who historically relies on crude oil as its main energy source for nearly all industries. Needless to say, this oil dependence drives the prices of everything up—from processed foods to clothing to concrete (Where is Chavez when you need him most?). By utilizing the natural processes of volcanic activity, geothermal energy will provide a much needed alternate energy source at a fraction of the cost of more traditional sources.
New Program Targets At-Risk Children
Thanks to a $10 million loan from the Inter-American Development Bank, the Nicaraguan government will launch a new program this month aimed at at-risk children.
The Program of Integrated Care for Nicaraguan Children will target children in 66 communities across the country. As part of the program, the Ministries of Education, Health and Family will provide support and advice to caregivers of children between birth and six years of age, and will focus on the areas of nutrition, health care, education and recreation. Food will be provided to children suffering from malnutrition and medical care will be available to families with children who otherwise could not afford proper treatment.
Throughout 2008, the Ministry of Education will also provide funding for 800 new "kitchen gardens" at schools in various regions of the country. This represents a 700% increase in the number of gardens from the previous year.
The students will benefit from their involvement in everything from preparing the soil to planting, watering, weeding, nurturing and harvesting grains, fruits and vegetables. And their organic sciences curriculum will be enhanced through the students’ exposure to natural processes like soil erosion, weather impact and photosynthesis. By tending the gardens daily, not only will the students have personal responsibility for the provision of fresh, healthy meals at school, but they will also develop an awareness of environmental stewardship, an appreciation of the earth and an understanding of the joys of meaningful work.
Healthcare Options Extended for Poor Families
A recent article in the Nicaragua Network Hotline mentioned public health improvements in Nicaragua, including the staffing of previously shuttered health clinics and wider availability of prescription drugs to the poor.
A very small percentage of Nicaraguan citizens carry health insurance—and out of pocket expenditures for health care, along with lack of access in rural areas, constitute a serious barrier for poor families. The reopening of health clinics and the provision of pharmaceuticals will help to minimize illness among several thousand residents.
At Rancho Santana, we are proud to be a part of the solution to health care issues and continue to support the Roberto Clemente Clinic with both monetary and in-kind donations. Through this and many other donations, the Clinic is able to provide low or no cost health care to more than 1500 residents in neighboring communities. And Rancho Santana exemplifies a genuine dedication to improving the standard of living in the local community.
Chefs Step in to Aid Felix Victims
Chefs for Humanity (CFH), a non-profit alliance of culinary professionals, in conjunction with the UN World Food Programme, have announced a two-year, cooperative initiative to assist victims of Hurricane Felix from the Wawa Boom community in Nicaragua.
Felix displaced thousand of residents from villages along the Wawa River—a section located in Nicaragua’s North Atlantic Autonomous Region. Currently, nearly 350 of these refugees – mostly from the Wawa Boom community – are housed in tents donated by USAID – about 20% of them are children under the age of five.
During Phase One of the WaWa Boom Project, as it’s called, CFH will coordinate with local officials to purchase basic necessities, including shoes for the children, dishes, cooking pots, rubber boots for men, soap, instant milk, canned fish, sugar, flour and corn. In addition, the organization will purchase tools for rebuilding and planting, including machetes for each family, a community chain saw, axes, lumber, nails, and hammers.
Phase Two and Three will consist of building solid living shelters and a school; a potential "volun-tourism" program in November 2008 to bring man power and supplies to the community for rebuilding; and the development of sustainable enterprise for the community. Under consideration as enterprises are agricultural solutions, solar stoves, a cooperative childcare facility and additional food program support.
This project illustrates the cooperative efforts of the international community and US government and private sectors in reducing poverty and establishing a quality standard of living in Nicaragua. And it is with obvious, increased frequency (and great pleasure) that I am able to write to you each month about the nations of the world embracing Nicaragua and addressing its social issues.
".. safe, easy to reach and an excellent, undiscovered destination to be experienced now as it was meant to be experienced…
"It’s like St. Barth’s without the attitude"
NBC’s Today Show
"Word is getting out about this country. But it's not simply because the property deals are so attractive or the cost of living so affordable. It's because this country boasts a stable democracy, a booming economy and one of the most comprehensive incentive programs anywhere."
MSN.com
"Relative ease of purchase, tax incentives, low crime and a laid-back lifestyle on a gorgeous stretch of coast make Nicaragua appealing."
L.A. Times
"This Central American nation is emerging as a US retirement heaven. Cheap land surrounds picturesque crater lakes and active volcanoes…and the cost of living is a fraction of what it is in the United States."
Christian Science Monitor
"Nicaragua is virtually unknown to most people and usually misunderstood, which is why forward-thinking investors can find some of the best real estate deals on Earth in this country."
MSN Money
"In short, Nicaragua is easily accessible, safe, attractive and inexpensive, and investment opportunities are timely."
Pittsburg Post-Gazette
Top 5 Latin American Real Estate Markets
Although Nicaragua is known for its history of political instability and conflict, the previously war-torn nation is desperately trying to attract foreign investment. Government incentives have made Nicaragua real estate appealing to investors, as Nicaragua’s attractions continue to draw more tourists and expatriates.
Nicaragua could become an ideal retirement and vacation destination for millions
"Because Nicaragua has historically been overlooked by travelers and real estate investors [in comparison] to Costa Rica, Panama, and Mexico, prices have remained extremely affordable," Henkel Smith, president of Water’s Edge International Realty, said. "Nicaragua's real estate market is definitely still in its infancy, but we see things changing as the number of foreign visitors and investors continue to buy up properties."
The country has an abundance of natural resources, beautiful landscapes and a government that claims to be welcoming towards foreign investment and tourism. Assuming the government’s expressed attitude towards foreign investment is genuine, Nicaragua appears to be an investor's dream, offering an ideal retirement and vacation destination for millions of people, especially Americans and Europeans.
On the other hand, some investors might find Nicaragua’s political structure to be intimidating; those who perceive President Daniel Ortega’s position of power as threatening have been discouraged from entering the market. Nevertheless, optimistic investors believe that Ortega’s personal investment in business and tourism projects around the country are a sign that he plans to take a different path this time in office, and that the President is now trying to make amends for his violent past as a young Sandinista revolutionary.
Nicaragua’s investment hotspots are Granada, a colonial town on the bank of Lake Nicaragua, and San Juan Del Sur, a booming fishing village located on the Pacific Ocean just north of Costa Rica. Although a profusion of new developments are happening along the Pacific coast, most of the country awaits significant advancements in infrastructure, providing investors with opportunities to buy property in almost any price range.
Back to main Nica Newsletter May 2008 article
To read complete Newsletter:
- HTML: Click here
