lection Results - Daniel Ortega Wins - November 2006

The world’s eye was centered on Nicaragua this Sunday (November 6th, 2006) as the country celebrated its 4th democratic Presidential elections.

All the hotels within a 60 km radius of Managua were booked as more than 2000 international observers came to witness the electoral contest that was between 4 main presidential contenders: Daniel Ortega of the Sandinista National Party, Eduardo Montealegre of the center right party (ALN), Jose Rizo of the traditional right party (PLC) and Edmundo Jarquin of the center left party (MRS).

Aurora beachfront team

What does this means for investors?

Although it was a close race, Daniel Ortega’s campaign of “Peace and Reconciliation” triumphed and he will be sworn in January as president. The final outcome favored Daniel Ortega with 38% of the vote, Eduardo Montealegre came in a close second with 29% of the vote and in 3rd place the Liberal party was able to get 26%. In the end the MRS only received 7% of the vote. Although most political analysts forecasted a second round, Ortega was able to secure a victory in the first round with a margin of almost 9%. Electoral law in Nicaragua states that a candidate can win with 35% of the vote or more if there is a margin of over 5% between the contender and his closest opponent.

The Parliamentary elections, also took place this Sunday. With new power granted for the congress as a result of legislations that took place in 2005 , some analysts believe that the parliamentary elections were more important than the presidential. The outcome was similar and gave the lead to FSLN but gave no majority to any one of the 4 political parties. With a great amount of their constituents voting for Montealegre as president , MRS (the center left party) was actually able to gain almost 10% in the parliament which was greater than they obtained in the presidential race.

As we have seen with San Juan del Sur’s Sandinista Mayor Eduardo Holmann, the Sandinistas are not the same party from the days of the Contras and Reagan. Eduardo came by our office today and assures us that his top priority will continue to be tourism and vacation related development for his hometown. He added that foriegn investment will be encouraged and property rights will be protected. Eduardo who is very close with Daniel Ortega and Sandinista leaders assures us that they are on the same page. He, along with other Sandinista leaders throughout the country know that Tourism is a sustainable answer to many of Nicaragua’s problems and any policies that would hurt this coastal boom would be a waste of a very valuable resource.

Throughout the campaign Ortega and his running mate, former right wing politician and businessman, Jaime Morales have made it clear that they will respect property rights, move forward with CAFTA, and continue to welcome foreign investment and free market principles. The vast majority of the revolutionary leaders from the 1970’s who successfully overthrew the Somoza military dictatorship are now businessmen. They have learned through a decade of war and strife that as a newly developing country, they can’t cut off the foreign aid and investment that comes from the U.S.

We expect business as usual in San Juan del Sur as well as our new office in Leon. The general feeling of the country is one of hope and forward progress. Many Nicaraguans believe that Daniel will improve economic conditions for the poor that make up so much of this country. Initial statements from the U.S. have indicated that they respect the democratic results and are willing to work with the new leader. We are confident that a globalized economy and a closer relationship with the US through CAFTA will grant Nicaragua the stability to govern in peace with progress.

Santa Inez

The cheapest beach lots in all of Nicaragua! Playa Santa Inez is located near Assedores beach, 17 miles north of Chinandega. These lots sit in front of a beautiful sand beach that is great for swimming. Directly in front of the project is a plentiful lobster reef with world-class surfing close by.

This area is on track to be the next tourism focus of the country and is home to the luxury marina, Puesta del Sol. Presale prices are $29,000. Reservations can be made with a $3,000 deposit.

El transito Beach House

This beautiful 5 bedroom, 2-story beach house, built to American construction standards, has unbelievable panoramic views of the Pacific. The house sits atop a 20 foot cliff overlooking a very private beach. This secluded beach is lined with a vein of black volcanic rock. When the tide rises, water explodes over the rocks and creates natural jacuzzi pools in the sand.

This paradise is only an hour and a half from the airport. Title Insurance policy included. $165,000

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