Nicaragua Defies Global Sanctions with New Legislation

Nicaragua's parliament approved a law to nullify foreign sanctions on President Ortega's allies. This move aims to negate the sanctions' impact locally by mandating banks to overlook them. Critics express concerns over financial risks, and the law will be effective upon publication in the official gazette.

Nicaragua's parliament has passed legislation designed to render foreign sanctions against President Daniel Ortega's administration and close allies ineffective within the country's borders. While the measure cannot alleviate international restrictions, it obliges local financial institutions to disregard these sanctions, effectively voiding their domestic influence.

The law was backed by all members of the ruling Sandinista Front in the 91-seat assembly, forwarding President Ortega's proposal swiftly through the legislative process. Supporters argue that the new legislation upholds Nicaraguan sovereignty, with Sandinista deputy Walmaro Gutierrez asserting the country's right to self-governance without external pressures.

However, critics warn of potential chaos in Nicaragua's financial sector, as banks face the dilemma of defying foreign sanctions or incurring potential local legal repercussions, including hefty fines and even imprisonment. The law has sparked a debate over Nicaragua's financial stability amidst fears of international economic repercussions.

(With inputs from agencies.)