Nicaragua's Controversial Move to Nullify Foreign Sanctions

Nicaragua's parliament has passed a law seeking to nullify foreign sanctions against President Daniel Ortega, his wife Rosario Murillo, and key officials. While it can't stop the sanctions' external effects, it forces local banks to ignore them. Critics argue it endangers the financial system's stability.

Nicaragua's parliament has passed a new law aiming to invalidate foreign sanctions against President Daniel Ortega, his vice president and spouse Rosario Murillo, and other high-ranking officials. Despite being unable to prevent sanctions' impact internationally, the measure urges local banks and institutions to overlook these actions within Nicaragua.

The legislation was approved unanimously by the 91 pro-government deputies in the Sandinista Front-controlled legislature. Walmaro Gutierrez, a Sandinista party deputy sanctioned by the U.S., remarked that the law asserts Nicaragua's sovereignty. "We are tired of having the sword of Damocles always hanging over us," he stated.

The law will be effective upon its publication in the official gazette, anticipated shortly. Its provisions make foreign sanctions "null and void" in a legal context and impose penalties on entities that suspend goods or services to sanctioned individuals. Critics claim it could pressure the financial system to comply with the government's directives, risking instability.

(With inputs from agencies.)