CIVICUS speaks with Nicaraguan lawyer and activist Juan Barberena about recent legal changes and their impact on civil society in Nicaragua. Juan is a member of the We Build Nicaragua movement and the Political Council of Blue and White National Unity, a coalition of diverse and plural social, political and economic organisations striving for democracy in Nicaragua.

In December 2024, Nicaragua’s parliament passed the Law on the Administration of the Monetary and Financial System, which gives the government of President Daniel Ortega and Vice President Rosario Murillo unprecedented powers over the private banking sector. The law authorises the government to appoint and remove bank directors, supervise all financial operations and abolish banking secrecy. This expansion of state control has raised alarm among the opposition, which warns of the potential use of financial information as a tool for the regime to further accumulate power and repress dissent.

What changes does the new Law for the Administration of the Monetary and Financial System introduce?

This law, passed after a constitutional overhaul that concentrated political power in the hands of the Ortega-Murillo family and suppressed the fundamental rights of Nicaraguans, is another of the changes promoted by the regime since 2021.

The new law covers the functions of the Central Bank, which is responsible for economic and monetary policy, and the Superintendency of Banks and Other Financial Institutions. It strengthens the state’s ability to control the banking and financial system, and therefore the country’s economy, by ensuring that companies linked to the Ortega-Murillo family can maintain their influence and obtain economic benefits, either directly or by acquiring shares.

Among the powers the law grants to the government is the power to request economic and financial information from banking institutions on any legal entity, including civil society organisations (CSOs). This is in addition to the severe restrictions CSOs already face under laws such as the Foreign Agents Regulation Act and the Non-Profit Organisations Regulation Act. Together with the new regulations, these laws reinforce a centralised legal and political system that seeks greater state control over all economic activity.

Do you think that this new law deepens the regime’s authoritarianism?

This law is part of the same process by which the Ortega-Murillo regime has been consolidating its absolute control for years. It has used the armed forces, the national police and the army for repression, even committing crimes against humanity that have been documented by international bodies. Since 2020 it has also passed restrictive laws such as the Law for the Defence of People’s Rights and the Special Law on Cybercrime, which restrict freedom of expression, criminalise dissent and allow the state to access personal data without a court order.

It has also shut down over 5,000 CSOs and imprisoned political opponents, journalists and human rights defenders in the run-up to elections in 2021. More recently, the 2023 constitutional changes redefined the state as a ‘revolutionary state’, abolished the independence of the branches of government, removed basic guarantees of freedoms of expression and movement and the right to a fair trial and stripped more than 400 people of their Nicaraguan nationality.

The regime also passed a law prohibiting the application of international sanctions in Nicaragua, which could collapse the national financial system by isolating banks from international correspondent networks. This will jeopardise financial intermediation, remittances and foreign trade, exacerbating the country’s economic and social crisis.

What strategies of resistance has civil society adopted?

Despite the difficult conditions in Nicaragua, civil society has found ways to adapt and resist. Community networks that have been operating for over 30 years have resisted the regime’s attempts to dismantle them. Many other CSOs that have been persecuted and closed down continue to work from abroad, maintaining links with the country, documenting human rights abuses and exposing the situation to international bodies. They have strengthened their international alliances, which has allowed them to access resources and maintain a presence in international forums to put pressure on the regime and support initiatives inside Nicaragua.

However, the closure of organisations has left important gaps in areas where the state is absent. For example, the dissolution of the Nicaraguan Association of Haemophiliacs left many people without access to specialised medicines and adequate care. This illustrates the devastating social impact political persecution can have.

It is expected the regime will continue to tighten its totalitarian control, further closing civic space and increasing repression to ensure it remains in power. However, this concentration of power is no guarantee of stability. In particular, reforms aimed at ensuring dynastic succession within the Ortega-Murillo family circle could lead to internal tensions.

What should the international community do to support Nicaraguan civil society?

Given that organised civil society in Nicaragua has been dismantled, the international community should focus on supporting CSOs operating from abroad, without endangering those who remain in the country. The organisational capacity of civil society needs to be rebuilt for a future democratic transition. This process will be long and complex, but it is essential for Nicaragua’s recovery.

The international community must adapt its approach to Nicaragua’s authoritarian situation and abandon technocratic strategies designed for contexts of greater openness. It must establish channels of permanent dialogue with civil society to expose the regime’s abuses and coordinate measures to weaken it, including sanctions targeting its economic structures. It should also promote legal action in international tribunals and national courts of universal jurisdiction, and strengthen the Inter-American Human Rights System as an instrument of pressure and accountability.