Loan to Ortega government withheld for months, Taiwan banks reportedly hesitant to be involved
Taiwan News
Date: 2019/05/26
By: Duncan DeAeth, Taiwan News, Staff Writer
File Photo: President Daniel Ortega and President Tsai Ing-wen, Jan. 2017 (By Central News Agency)
TAIPEI (Taiwan News) – In February, the governments of Taiwan and its Central American ally, Nicaragua, agreed to a US$100 million loan from Taipei to the faltering government of Daniel Ortega, a move which was widely condemned by critics of Ortega’s increasingly authoritarian socialist government.
However, local media in Nicaragua reports that Taiwan has been reluctant to deliver the funds, suggesting that Taiwan’s government may consider rescinding the financial support for the Ortega administration.
According to Today Nicaragua, the primary reason is a fear of penalties that might result from future U.S. sanctions targeting the country. Despite the fact that no such sanctions have been declared by Washington, and Taipei has legal authority, and some might argue the obligation, to deliver the funds, Taiwanese banks reportedly want nothing to do with the transfer of the US$100 million.
As a result, the transaction has stalled. [FULL STORY]
