Nicaragua Enacts Law Nullifying Foreign Sanctions

Nicaragua's parliament passed a law nullifying foreign sanctions against President Ortega's vice president and wife, Rosario Murillo, and high-ranking officials. The law, passed unanimously, mandates local entities to disregard foreign sanctions. Critics argue this endangers Nicaragua's banking sector and ties to international markets.

Nicaragua's parliament has approved a controversial law aimed at nullifying foreign sanctions targeting key political figures, including President Daniel Ortega's vice president and wife, Rosario Murillo. The new legislation, which was unanimously supported by the ruling Sandinista Front-dominated parliament, seeks to render these foreign sanctions ineffective within the country's borders.

Proponents argue that the law bolsters Nicaragua's sovereignty and independence, as articulated by Walmaro Gutierrez, a deputy from Ortega's party. Despite its passage, critics warn it places the nation's financial system at risk, as local banks are pressured to ignore international directives, potentially jeopardizing their global credit lines.

Economists foresee significant repercussions, including potential declines in Nicaragua's borrowing capacity and adverse impacts on exports. The approval of this law follows other recent moves by the government to consolidate power, including extending police and army chiefs' terms to six years amidst heightened scrutiny of Ortega's administration.

(With inputs from agencies.)