NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: MARCH 2009

UNCLAS MANAGUA 000354 STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID STATE ALSO FOR WHA/EPSC STATE PASS TO USTR TREASURY FOR INL AND OWH SIPDIS E.O. 12958: N/A TAGS: EINV ECON USTR KIDE NU SUBJECT: NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: MARCH 2009 SUMMARY -------------- ¶1. In March 2009, the Government of Nicaragua (GON) reported the resolution of seven Embassy registered property claims, including one claim previously dismissed under Decree 38 (1979). One claimant recovered her property through the courts and one claimant signed a leasing agreement with the Nicaraguan National Police to recover his property. We have added a new category to track the resolution of U.S. claims recently dismissed by the GON. There remain 606 unresolved registered property claims belonging to 287 U.S. citizens in the Embassy's database. To date, the overwhelming majority of resolutions have involved compensation via government-issued indemnification bonds ("bonos de pago de indemnizacion" or BPIs). As of March 31, 2009, the GON had issued BPIs with a face value of $335,698,234.17 to Embassy-registered claimants. Since taking office in January 2007, the Ortega administration has resolved 67 claims, twenty of which during the 2008-2009 waiver year. EMBASSY REGISTERED CLAIMS RESOLVED IN MARCH -------------- ¶2. On March 16, 2009, Attorney General's Office provided the Embassy a copy of the final settlement document or "finiquito" signed by U.S. citizens Eduardo, Salvador, and Ricardo Cuadra on March 5, ¶2009. The Cuadras received BPIs worth 1,138,100 cordobas, approximately $56,678. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Cuadra Family House 1 bonds ¶3. On March 19, 2009, Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Irene Dona on March 12, 2009. Mrs. Dona received BPIs worth 263,300 cordobas, approximately $13,113. Mrs. Dona's claim had been dismissed by the GON based on Decree 38 (1979) on February 26, 2008. Decree 38 authorized the Nicaraguan government to confiscate property belonging to the allies of the Somoza family. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Irene Dona House 1 bonds ¶4. On March 19, 2009, Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Enrique Pereira on February 27, 2009. Mr. Pereira received BPIs worth 4,947,200 cordobas, approximately $246,375. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Enrique Pereira House 1 bonds ¶5. On March 31, 2009, Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Gloria Renazco on March 26, 2009. Mrs. Renazco received BPIs worth 1,630,600 cordobas, approximately $81,205. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Gloria Renazco Land 2 bonds ¶6. On March 06, 2009, Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Roger Teran on September 8, 2008. Mr. Teran received BPIs worth 7,368,900 cordobas, approximately $366,977. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Roger Teran Land 1 bonds ¶7. On March 06, 2009, Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Pamela Zelaya on February 24, 2009. Ms. Zelaya received BPIs worth 607,300 cordobas, approximately $30,244. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Pamela Zelaya Land 1 bonds ¶8. On March 11, 2009, U.S. claimant Maria Alvarez provided the Embassy a copy of the court decision that ordered the return of her property located in Masaya, southern Nicaragua, and the eviction of the illegal occupant on February 11. Her property had been under the control of a former Nicaraguan Army officer. We have updated our database to reflect this recovery. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Maria Alvarez House 1 recovery ¶9. On March 19, 2009, Attorney General's Office provided the Embassy a copy of the finiquito and the leasing agreement signed by U.S. citizen Elmer Hidalgo and the Nicaraguan National Police on March 16, 2009 for the return of his property located in Jalapa, northern Nicaragua. The police agreed to pay Mr. Hidalgo a monthly rental fee of $100 effective in March while they finalize the construction of their new office in Jalapa. The police plan to move into their new office in April 2010. The lease is for one year and can be extended for an additional six months. We have updated our database to reflect this recovery. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Elmer Hidalgo House 1 recovery STATUS OF AMCIT PROPERTY AS OF 03/31/09 -------------- ¶10. The following is a snapshot of current U.S. citizen property claims. The Embassy maintains separate databases for claims registered before and after the July 31, 2005 deadline in the Consolidated Appropriations Act. EMBASSY-REGISTERED CLAIMS NUMBER -------------- -------------- Total Amcits with pending claims 287 Total Amcit claims pending resolution 606 EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR NUMBER -------------- -------------- Claims resolved calendar year 2009 10 Claims resolved calendar year 2008 47 Claims resolved calendar year 2007 10 Claims resolved calendar year 2006 81 Claims resolved calendar year 2005 126 Claims resolved calendar year 2004 218 Claims resolved calendar year 2003 243 Claims resolved calendar year 2002 125 Claims resolved calendar year 2001 175 Claims resolved calendar year 2000 70 EMBASSY-REGISTERED CLAIMS RESOLVED BY WAIVER YEAR NUMBER -------------- -------------- -------------- Registered claims resolved so far in 2008-09 20 (waiver year: July 29, 2008 - July 29, 2009) Registered claims resolved 2007-08 waiver year 42 Registered claims resolved 2006-07 waiver year 34 Registered claims resolved 2005-06 waiver year 86 Registered claims resolved 2004-05 waiver year 187 Registered claims resolved 2003-04 waiver year 214 Registered claims resolved 2002-03 waiver year 183 Registered claims resolved 2001-02 waiver year 160 Registered claims resolved 2000-01 waiver year 142 Registered claims resolved 1999-00 waiver year 77 Registered claims resolved 1998-99 waiver year 156 Registered claims resolved 1997-98 waiver year 204 Registered claims resolved 1996-97 waiver year 145 EMBASSY-REGISTERED CLAIMS UNDER GON CONTROL NUMBER -------------- -------------- Total Amcit properties under GON control 51 (subject to revision) GON-held claims resolved 2008-09 waiver year 3 GON-held claims resolved 2007-08 waiver year 1 GON-held claims resolved 2006-07 waiver year 0 GON-held claims resolved 2005-06 waiver year 3 GON-held claims resolved 2004-05 waiver year 16 GON-held claims resolved 2003-04 waiver year 12 GON-held claims resolved 2002-03 waiver year 11 GON-held claims resolved 2001-02 waiver year 26 GON-held claims resolved 2000-01 waiver year 2 GON-held claims resolved 1999-00 waiver year 2 GON-held claims resolved 1998-99 waiver year 5 GON-held claims resolved 1997-98 waiver year 29 GON-held claims resolved (total) 177 CLAIMS DISMISSED THE GON NUMBER -------------- -------------- MARCH 2008 73 FEBRUARY 2008 21 JANUARY 2008 34 NOVEMBER 2007 18 -------------- TOTAL 146 DISMISSED CLAIMS LATER RESOLVED IN FAVOR OF U.S. CLAIMANT NUMBER -------------- -- -------------- MARCH 2009 1 OTHER CATEGORIES TRACKED NUMBER -------------- -------------- DECISION AGAINST U.S. CLAIMANT IN COURT 9 (CLAIM WITHDRAWN BY AMCIT) CLAIMS WITHDRAWN BY AMCITS 1 (PROPERTY UNDER AMCIT CONTROL) CLAIMS WITHDRAWN BY AMCITS FOR 1 LACK OF SUPPORTING DOCUMENTS TOTAL CLAIMS RESOLVED BY LAND SWAPS 6 TOTAL CLAIMS COMPENSATED VIA BONDS 1,910 (face value of bonds $335.6 million) NON-REGISTERED RESOLUTIONS BY WAIVER YEAR NUMBER -------------- -------------- Non-registered resolutions 2008-09 waiver year 0 Non-registered resolutions 2007-08 waiver year 6 Non-registered resolutions 2006-07 waiver year 12 Non-registered resolutions 2005-06 waiver year 30 Non-registered resolutions 2004-05 waiver year 0 Non-registered resolutions 2003-04 waiver year 6 Non-registered resolutions 2002-03 waiver year 22 Non-registered resolutions 2001-02 waiver year 93 Non-registered resolutions 2000-01 waiver year 300 Non-registered resolutions 1999-00 waiver year 455 Non-registered resolutions 1998-99 waiver year 310 Non-registered resolutions 1997-98 waiver year 230 Non-registered resolutions 1996-97 waiver year 208 NON-WAIVER CLAIMS REGISTERED AFTER JULY 31, 2005 NUMBER -------------- --- -------------- Total Amcit claimants registered with Embassy 15 Total Amcit claims pending resolution 21 NON-WAIVER CLAIMS RESOLVED BY CALENDAR YEAR NUMBER -------------- -------------- Claims resolved in calendar year 2008 1 Claims resolved in calendar year 2009 1 CALLAHAN