Nicaragua Crisis: OAS meeting, falling bank deposits

With the Organization of American States expected to address the ongoing deadly violence in Nicaragua at a meeting in Washington DC Tuesday, Nicaraguan human rights association (ANPDH) updated details from the latest rash of politically-driven bloodshed last weekend, reporting 10 deaths and 62 injuries - most related to bullet wounds.

Amnesty International on Tuesday called on OAS members to recognize the role of police and pro-government paramilitary groups in the killings, criticizing the lack of such a categorization of the violence in a "Draft Declaration of Support for the People of Nicaragua" written by the US and the government of President Daniel Ortega and released Monday, which called for a resumption of a peace dialogue.

The declaration was submitted early Tuesday before the OAS.

"The courageous people, human rights defenders and civil society organizations of Nicaragua need much more than tepid condolences and generalizations; they need a firm commitment to ensure that the extrajudicial executions and other grave human rights violations will not be repeated and go unpunished," said Erika Guevara Rosas, Americas director of Amnesty International, in the statement.

Just ahead of the latest violence, which has been largely centered in the Masaya jurisdiction of the country, the OAS said it was working on a plan to draft electoral reforms in November and December to be implemented in 2019.

Pictured: Mourners in Masaya, Nicaragua, carry a coffin with the remains of a 22-year-old on Monday. For the most part, Masaya is controlled by government opponents that set up barricades and deny access to the police.

Violence impacting bank deposits

Nicaragua's central bank has reported a steady decline in bank deposits from the week of April 18 - at the start of the ongoing conflict - and May 16, noting that the financial system has lost 8.523bn córdobas (US$271mn) in deposits, or close to 5% of existing deposits, according to local media outlet La Prensa de Nicaragua.

The recent trend stands in contrast to 11.4% annual deposit growth between January and March of this year.

Economist Sergio Santamaría told La Prensa that the financial system in Nicaragua remains sustainable despite the political crisis and reduction in deposits.

"There is some stability in the financial system. What they are watching out for now is [loan] defaults. For now, there is some cushion," he said.

At the end of March, according to a monthly report from the central bank, 92.8% of Nicaragua's gross credit portfolio was classified as 'A', which is the highest credit quality.