GATS/SC/63/Suppl.1 26 February 1998 ORGANIZATION ( ) NICARAGUA. Schedule of Specific Commitments. Supplement 1

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1 WORLD TRADE GATSSC63Sul.1 26 February 1998 ORGANIZATION ( ) Trade in Services Original: Sanish NICARAGUA Schedule of Secific Commitments Sulement 1 (This is authentic in Sanish only) This text relaces the financial services section on ages 9 and 10 of document GATSSC63.

2 NICARAGUA SCHEDULE OF SPECIFIC COMMITMENTS Modes of suly: (1) Cross-border suly (2) Consumtion abroad (3) Commercial resence (4) Presence of natural ersons 7.FINANCIAL SERVICES A.Insurance and Insurance-Related Services GA TS SC 63 Su l. 1 Pag Life insurance (excluding ension funds) (CPC 8121) Non-life insurance (CPC 8129) Reinsurance and retrocession (CPC 81299*) (3)Insurance and reinsurance activities can only be exercised by legal ersons established and domiciled in the country as ublic limited comanies, subject to the legal regime alicable to such comanies and to the General Law on Insurance Institutions, and having obtained the required authorization from the Governing Council of the Office of the Suervisor of Banks. They are also subject to the Law Creating the Office of the Suervisor of Banks and to the Resolution authorizing their establishment and oeration. (3) None e 2 Services auxiliary to insurance (including brokerage and agency insurance services) (CPC 81401) Foreign-owned comanies are subject to the same obligations as domestic comanies, and may not resort to dilomatic channels in any matter relating to their oerations in the country. Insurance comanies may engage, in Nicaragua, only in insurance and reinsurance activities secified in the Resolution authorizing their establishment and oeration, and in the

3 investment of their caital and reserves for uroses ermitted under the Law. Prior authorization from the Office of the Suervisor of Banks is required for the initiation of oerations by insurance entities or for entering a new branch of insurance. Insurance institutions must invest their caital, caital reserves and other reserves in assets laid down by the Law. The Governing Council of the Office of the Suervisor of Banks is resonsible for determining the ercentages of reserves that may be invested abroad. Insurance institutions established in the country, whether domestic or foreign, must have minimum caital holdings in the following amounts: (1)For causality insurance comanies, US$1,200,000; (2)for life insurance comanies, US$1,200,000; (3)for institutions oerating in both branches, US$2,000,000. A u The Governing Council has the legal authority to modify the minimum amounts required for insurance comanies to oerate, and the amounts may be exressed in national currency. A natural or legal erson may only issue insurance olicies ending an authorization or licence to do so and if the transaction is

4 covered by a security or a guarantee in an amount set by the Office of the Suervisor of Banks. Insurance brokers are enterrises established in Nicaragua and engaging either individually or as commercial comanies, in their own name and for their own account, in negotiating and obtaining insurances in Nicaragua in the name of insurants other than themselves, issued by any of the institutions referred to in the General Law on Insurance Institutions and its Revision. They are subject to the rovisions of the Commercial Code of Nicaragua in all matters that are alicable to them and not covered by the law. GA TS SC 63 Su l. 1 Pag B.Banking and Other Financial Services (excluding insurance) (4)Unbound, excet as indicated in the horizonal (4)Unbound, excet as indicated in the horizonal e 4 Accetance of deosits and other reayable funds from the ublic (CPC 81115) Other bank deosit services (CPC 81116) Other deosit services (CPC 81119) Financial leasing with otion to urchase (CPC 8112) (3)Any rivate bank established in Nicaragua must be set u and oerated as a ublic limited comany in conformity with the General Law on Banks and Other Financial Institutions, and with the Law creating the Office of the Suervisor of Banks, the Commercial Code and the other laws alicable to such comanies to the extent (3) None

5 Lending of all tyes, including consumer credit, mortgage credit, factoring and financing of commercial transactions (CPC 8113) All ayment and money transmission services (CPC 81339**) that they have not been modified by the General Law on Banks and Other Financial Institutions. Banks that are legally constituted abroad may only oerate in the country by setting u a branch office. Guarantees and commitments of a financial nature (CPC 81199**) Foreign exchange (CPC 81333) The minimum share caital for a bank is US$2,000,000 or the equivalent thereof in national currency, wherever the bank is established within the country. This amount may be modified by the Governing Council of the Office of the Suervisor of Banks. Branches of foreign banks must aoint a roxy, who submits the alication to oerate in Nicaragua to the Office of the Suervisor of Banks together with the authentic documentation roving that the bank is authorized to oerate in its country of origin and that the laws of that country allow it to oen branches in Nicaragua. Branches of foreign banks are considered to be domiciled in Nicaragua for all legal uroses and are subject to the laws of the country, without recourse to dilomatic channels in any matter relating to their oerations in the country. A u Branches of foreign banks may not announce or

6 indicate the amount of caital and reserves held by the arent bank without announcing or indicating, at the same time, the assigned caital and reserves of the branch in Nicaragua. The caital of branches of foreign banks authorized to oerate in the country may be registered in accordance with the Law on Foreign Caital Investment of Nicaragua. GA TS SC 63 Su l. 1 Pag (4)Unbound, excet as indicated in the horizontal (4)Unbound, excet as indicated in the horizontal e 6