Includes how major projects are financed and gives examples where relevant. Explains activities of the multilateral development banks in and other aid-funded projects where procurement is open to U.S. bidders.
Last Published: 7/21/2019

U.S. firms should be cautious when seeking financing in Nicaragua. On July 16, 2018 the National Assembly passed a new money laundering and anti-terrorism law. While the language of the bill generally adheres to international standards, the government has used the law to target and prosecute political opponents. U.S. firms may be subject to additional scrutiny by the government under the aegis of terrorism financing and money laundering legislation. These laws may be used to investigate or interdict the assets of any businesses and persons suspected of being linked to acts of money laundering or financing terrorism, terms which the government interprets broadly and with prejudice against perceived political opponents.

The future of the Nicaraguan economy remains uncertain. Long-term financing may not be available.  Average loan rates are generally much higher than those available to U.S. businesses from banks outside Nicaragua.  Loans are available both in dollars and córdobas, the local currency. Significant collateral is required to borrow locally, which may pose a constraint for businesses that lack assets in Nicaragua.  Real estate mortgages are issued for terms of up to 20 years.  The equity market is extremely shallow and not a reliable source of project financing.

The U.S. Overseas Private Investment Corporation, Export-Import Bank of the United States, and the U.S. Trade and Development Agency are potential sources of project financing.  The World Bank International Finance Corporation, the Multilateral Investment Guarantee Agency, the Inter-American Development Bank, and the Central American Bank of Economic Integration are also potential sources of project finance in Nicaragua.

Multilateral Development Banks:

U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (Inter-American Development Bank, World Bank)

The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the Inter-American Development Bank and the World Bank.  These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders.  Learn more by contacting the Commercial Liaison Offices to the Inter-American Development Bank (http://export.gov/idb) and the World Bank (http://export.gov/worldbank).

Web Resources

Commercial Liaison Office to the Inter-American Development Bank http://export.gov/idb
Commercial Liaison Office to the World Bank http://export.gov/worldbank
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

Nicaragua Market Access Project Financing