NICARAGUA: AMCIT PROPERTY CLAIMS MONTHLY UPDATE: MAY 2009

UNCLAS MANAGUA 000552 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: MAY 2009 SUMMARY -------------- ¶1. In May 2009, the Government of Nicaragua (GON) reported the resolution of seven Embassy registered property claims. There remain 592 unresolved registered property claims belonging to 284 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 May 31, 2009, the GON had issued BPIs with a face value of $339,755,164.59 to Embassy-registered claimants. Since taking office in January 2007, the Ortega administration has resolved 81 claims, thirty-four of which during the 2008-2009 waiver year. EMBASSY REGISTERED CLAIMS RESOLVED IN MAY -------------- ¶2. On May 12, 2009, the Attorney General's Office provided the Embassy a copy of the final settlement document stating that U.S. citizen Maximo Alejandro Blanco had decided to settle his claim through BPIs on April 29, 2009. On May 14, Mr. Blanco told the Embassy Property Office that he had settled his claim by accepting BPIs deposited in escrow at the Ministry of Finance. Mr. Blanco received BPIs worth 356,600 cordobas, approximately $17,605. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Maximo A. Blanco House 1 bonds ¶3. On May 12, 2009, the Attorney General's Office provided the Embassy a copy of the final settlement document or "finiquito" signed by the legal representative of U.S. citizen Norman Bonen-Castellon on May 5, 2009. The Castellon Estate received BPIs worth 442,200 cordobas, approximately $21,831. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Castellon Estate Land 1 bonds ¶4. On May 25, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Rina Cuadra on May 15, 2009. Mrs. Cuadra received BPIs worth 6,086,700 cordobas, approximately $300,496. We have updated our database to reflect this settlement. Mrs. Cuadra's claims had been previously dismissed by GON based on Decree 38 (1979) in 2008. Decree 38 authorized the GON to confiscate property belonging to "allies" of the Somoza family. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Rina Cuadra Land 2 bonds ¶5. On May 14, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by U.S. citizen Roberto Velez on May 12, 2009. Mr. Velez received BPIs worth 1,817,600 cordobas, approximately $89,733. We have updated our database to reflect this settlement. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Roberto Velez House 1 bonds ¶6. On May 25, 2009, the Attorney General's Office provided the Embassy a copy of the finiquito signed by the legal representative of U.S. citizen Francisco Zuniga on May 20, 2009. Mr. Zuniga received BPIs worth 1,721,000 cordobas, approximately $84,964. We have updated our database to reflect this settlement. Mr. Zuniga's claim had been previously dismissed by GON based on Decree 3(1979) in 2008. Decree 3 authorized the GON to confiscate property belonging to the Somoza family, the National Guard, and government officials. Type of No. of Type of Claimant Claim Claims Resolution -------------- -------------- -------------- -------------- Francisco Zuniga House and 2 bonds Check STATUS OF AMCIT PROPERTY AS OF 05/31/09 -------------- ¶7. 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 284 Total Amcit claims pending resolution 592 EMBASSY-REGISTERED CLAIMS BY CALENDAR YEAR NUMBER -------------- -------------- Claims resolved calendar year 2009 24 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 34 (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 BY 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 3 APRIL 2009 5 MAY 2009 4 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 7 TOTAL CLAIMS COMPENSATED VIA BONDS 1,923 (face value of bonds $339.7 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