General%20information%20for%20investing%20in%20Nicaragua

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General information for investing in Nicaragua
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Nicaragua
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Nicaragua at a glance

• Population 5,210,000
• Population growth rate 2.8
• Fifteen departments and Two Autonomous Regions
• Capital City Managua (pop. 1 million)
• Other Major Cities
• Granada
• Leon
• Masaya
• Matagalpa
• Jinotega
• Bluefields
• Puerto Cabezas

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Nicaragua has beach property
352 Km of coastline on the Pacific
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Nicaragua has lake property
10,333 square km of lakes and lagoons
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Political climate

• Two major political parties
• PLC
• FSLN
• President Enrique Bolaños
• Term 2002-2006
• Economic Stability

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Cellular service

• BellSouth, PCS and Enitel operate cellular phone
  networks.
• Average local cost is .26/min.

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Internet access

• Several companies offer dial-up, cable, radio and
  satellite services.
• Largest ISPS are IBW, CABLENET and TMX.
• Monthly fees range from 20 for basic dial-up
  connections to over 500 for satellite services.

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Air transportation

• Managua International Airport has recently been
  expanded to double its original capacity.
• Daily non-stop flights to Miami via American,
  TACA and SANSA. Continental offers daily non-stop
  flights to Houston. Direct connections to Los
  Angeles also available.
• National flights are available for travel to Corn
  Island, Bluefields, Puerto Cabezasand San
  Carlos.
• NatureAir runs daily flights between Granada, San
  José and Liberia in Costa Rica.

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Banking system

• 70 of all deposits are in U.S. Dollars
• Residency or local property ownership is required
  to open a personal bank account
• Six banks, all offer international financial
  services
• BAC (Banco de America Central)
• BANCENTRO (Banco Centroamericano)
• BDF (Banco de Finanzas)
• BANEXPO (Banco de Exportacion)
• BANPRO (Banco de la Produccion)
• BANCO CALEY DAGNALL

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Economic indicators

• Gross Domestic Product (GDP) 2.45 billion
  (locally produced)
• Estimated 2002 Real GDP Growth 3.5
• Low growth due to the end of Post Hurricane Mitch
  construction boom and presidential elections
• Inflation 3.7 estimated

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Economic indicators

• Exports US 770.4 million
• Coffee
• Beef
• Seafood
• Sugar
• Major trade partners
• U.S.
• Western Europe
• Central America
• Working population 1.85 million
• Rural based
• Largely unskilled

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Principal growth sectors

• Tourism
• Commerce
• Construction
• Telecommunications
• Agriculture
• Textiles

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Investments
Recent significant investments include
Metrocentro Shopping Mall in Managua Plaza Inter
Shopping Mall in Managua La Colonia
Supermarket Hotel Intercontinental Managua Hotel
Montelimar Holiday Inn Plaza Intercontinental Hote
l Princess Legends Hotel Expansion of
International Airport Highway System Telecommunica
tions
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Major foreign investors
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Tourism

• 112.5 million market
• Will eventually overtake coffee as leading hard
  currency earner

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Tourism Incentives Law

• Law 206
• Designed to promote the growth of tourist
  activities.
• Provides tax breaks for investments in
• Hotel services industry
• Food, beverage and entertainment services
• Tourism infrastructure
• Arts and craft facilities
• Over 65 projects have been approved, under this
  law, value US65 million.

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Construction costs

• Cost of building is approximately 35-50 per
  square foot.
• Most construction is of cinder block, cantera
  block, cement, and tile.
• Estimated sample costs
• -Concrete 4.00/bag
• -Cinder block .30/each
• -Cantera block 1.00/each
• -Steel Rebar 18.00 per 100 lbs

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Labor information

• Average monthly wages
• Manufacturing 127.70
• Transportation 199.63
• Construction 113.99
• Agriculture 81.47
• Services 91.24
• Work week
• 6 days/45 hours
• 30 days vacation for 12 months worked
• All employees receive 13th month Christmas Bonus

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Foreign investment Law 344

• Assures that foreign and domestic investment
  receive the same treatment.
• Eliminates restrictions on the way in which
  foreign capital can enter the country.
• Recognizes the investors right to own property
  and establish business enterprises as they wish.
• 100 foreign ownership is allowed, no requirement
  to have a local partner.