WORLD TRADE GATS/SC/63/Suppl.1
26February 1998
ORGANIZATION(98-0717)
Original: Spanish Trade inServices
NICARAGUA
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inSpanish only)
_______________
Thistextreplaces thefinancial services section onpages 9and10ofdocument GATS/SC/63.GATS/SC/63/Suppl.1
Page2NICARAGUA
SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
7. FINANCIAL SERVICES
A. Insurance and
Insurance-Related Services
Lifeinsurance (excluding
pension funds) (CPC 8121)
Non-life insurance
(CPC 8129)
Reinsurance and
retrocession (CPC 81299*)(1) Unbound
(2) Unbound
(3) Insurance andreinsurance activities can
onlybeexercised bylegal persons
established anddomiciled inthecountry
aspublic limited companies, subject to
thelegal regime applicable tosuch
companies andtotheGeneral Lawon
Insurance Institutions, andhaving
obtained therequired authorization from
theGoverning Council oftheOffice of
theSupervisor ofBanks. They arealso
subject totheLawCreating theOffice of
theSupervisor ofBanks andtothe
Resolution authorizing their establishment
andoperation.(1) Unbound
(2) Unbound
(3) NoneGATS/SC/63/Suppl.1
Page3Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Services auxiliary to
insurance (including
brokerage andagency
insurance services)
(CPC 81401)Foreign-owned companies aresubject to
thesame obligations asdomestic
companies, andmaynotresort to
diplomatic channels inanymatter relating
totheir operations inthecountry.
Insurance companies mayengage, in
Nicaragua, onlyininsurance and
reinsurance activities specified inthe
Resolution authorizing their establishment
andoperation, andintheinvestment of
their capital andreserves forpurposes
permitted under theLaw.
Prior authorization from theOffice ofthe
Supervisor ofBanks isrequired forthe
initiation ofoperations byinsurance
entities orforentering anewbranch of
insurance.
Insurance institutions must invest their
capital, capital reserves andother
reserves inassets laiddown bytheLaw.
TheGoverning Council oftheOffice of
theSupervisor ofBanks isresponsible
fordetermining thepercentages of
reserves thatmaybeinvested abroad.GATS/SC/63/Suppl.1
Page4Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Insurance institutions established inthe
country, whether domestic orforeign,
must have minimum capital holdings in
thefollowing amounts:
(1)Forcausality insurance companies,
US$1,200,000;
(2)forlifeinsurance companies,
US$1,200,000;
(3)forinstitutions operating inboth
branches, US$2,000,000.
TheGoverning Council hasthelegal
authority tomodify theminimum
amounts required forinsurance
companies tooperate, andtheamounts
maybeexpressed innational currency.GATS/SC/63/Suppl.1
Page5Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Anatural orlegal person mayonlyissue
insurance policies pending an
authorization orlicence todosoandif
thetransaction iscovered byasecurity
oraguarantee inanamount setbythe
Office oftheSupervisor ofBanks.
Insurance brokers areenterprises
established inNicaragua andengaging
either individually orascommercial
companies, intheir ownname andfor
their ownaccount, innegotiating and
obtaining insurances inNicaragua inthe
name ofinsurants other thanthemselves,
issued byanyoftheinstitutions referred
tointheGeneral LawonInsurance
Institutions anditsRevision. They are
subject totheprovisions ofthe
Commercial Code ofNicaragua inall
matters thatareapplicable tothem and
notcovered bythelaw.
(4) Unbound, except asindicated inthe
horizonal commitments.(4) Unbound, except asindicated inthe
horizonal commitments.GATS/SC/63/Suppl.1
Page6Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B. Banking andOther
Financial Services
(excluding insurance)
Acceptance ofdeposits and
other repayable funds from
thepublic (CPC 81115)
Other bank deposit services
(CPC 81116)
Other deposit services
(CPC 81119)
Financial leasing with
option topurchase
(CPC 8112)
Lending ofalltypes,
including consumer credit,
mortgage credit, factoring
andfinancing of
commercial transactions
(CPC 8113)
Allpayment andmoney
transmission services
(CPC 81339**)(1) Unbound
(2) Unbound
(3) Anyprivate bank established in
Nicaragua must besetupandoperated as
apublic limited company inconformity
withtheGeneral LawonBanks and
Other Financial Institutions, andwiththe
Lawcreating theOffice oftheSupervisor
ofBanks, theCommercial Code andthe
other laws applicable tosuch companies
totheextent thattheyhave notbeen
modified bytheGeneral LawonBanks
andOther Financial Institutions.
Banks thatarelegally constituted abroad
mayonlyoperate inthecountry by
setting upabranch office.(1) Unbound
(2) Unbound
(3) NoneGATS/SC/63/Suppl.1
Page7Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Guarantees and
commitments ofafinancial
nature (CPC 81199**)
Foreign exchange
(CPC 81333)Theminimum share capital forabank is
US$2,000,000 ortheequivalent thereof
innational currency, wherever thebank
isestablished within thecountry. This
amount maybemodified bythe
Governing Council oftheOffice ofthe
Supervisor ofBanks.
Branches offoreign banks must appoint a
proxy, whosubmits theapplication to
operate inNicaragua totheOffice ofthe
Supervisor ofBanks together withthe
authentic documentation proving thatthe
bank isauthorized tooperate inits
country oforigin andthatthelaws ofthat
country allow ittoopen branches in
Nicaragua.
Branches offoreign banks areconsidered
tobedomiciled inNicaragua foralllegal
purposes andaresubject tothelaws of
thecountry, without recourse to
diplomatic channels inanymatter relating
totheir operations inthecountry.GATS/SC/63/Suppl.1
Page8Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Branches offoreign banks maynot
announce orindicate theamount of
capital andreserves heldbytheparent
bank without announcing orindicating, at
thesame time, theassigned capital and
reserves ofthebranch inNicaragua.
Thecapital ofbranches offoreign banks
authorized tooperate inthecountry may
beregistered inaccordance withtheLaw
onForeign Capital Investment of
Nicaragua.
(4) Unbound, except asindicated inthe
horizontal commitments.(4) Unbound, except asindicated inthe
horizontal commitments.