After the United States sanctions the Orteguista Police (PO), the Central American Bank for Economic Integration (CABEI) announced that it suspended a controversial loan that had been disbursed to the PO, in an agreement that it reached with the Ortega Government to remove that obligation.
The step taken by the Ortega government to suspend this disbursement is that it removed CABEI from the obligation to proceed to deliver the funds, which implies that the PO would be left without these resources, which amount to 7.6 million dollars to the PO , whose project is regional and involves all the police entities in the region.
This is the project “Expansion of Rural Coverage of the National Police to strengthen Citizen Security”, signed between CABEI and the Republic of Nicaragua on April 30, 2014.
“CABEI attests that the resources of this loan have been used in accordance with its contractual terms under current regulations, standardized control and supervision mechanisms for all loans granted by CABEI. The unblinded status indicates the total release of CABEI’s commitment to make disbursements of the referred loan, “CABEI reported in a statement issued on Monday.
“De-binding, that means suspending the bank’s commitment. You know that when a loan agreement is made, the two commit, the bank to give the money and the recipient to use that money for the specific purpose. Unbinding means that one of the parties is renouncing its commitment », explains Róger Arteaga, former CABEI regional manager.
“CABEI has already renounced to continue disbursing a loan to the Police and that was what was originally denounced, to suspend the disbursements of that loan,” Arteaga explained.
US sanctions were key
The multilateral bank’s announcement, the only remaining source of funds for the Daniel Ortega regime, comes almost 20 days after the United States imposed sanctions against the Orteguista Police and three other commissioners, who were financially killed.
Arteaga recalled that sectors of civil society had been reporting for months that the Nicaraguan Police, after participating in the 2018 massacre, had distorted its role “and therefore asked that the Nicaraguan Police continue to be disbursed.”
Given these criticisms, CABEI in early May 2019 declared itself “apolitical” and assured that Nicaragua continued to comply with the technical requirements to continue receiving financing.
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