Taiwan Mulls Writing Off Nicaragua's Debts But Denies Coercion
Taiwan admitted it is considering writing off some of Nicaragua's debts to Taipei, but denied speculation that Nicaragua made the demand in exchange for keeping diplomatic ties with Taipei.

'We are considering it from the humanitarian point of view, but it has not been decided yet. It is international consensus to help needy countries,' Foreign Ministry Spokesman Wang Chien-yen told reporters.

Wang was responding to a Taiwan newspaper report that Nicaraguan Foreign Minister Samuel Santos mentioned the request to reporters on June 22, after he had conferred a medal on Taiwan's ambassador to Nicaragua Hung Ming-ta.

Nicaragua wants Taiwan to write off the debts in exchange for Managua's temporarily maintaining ties with Taiwan, the China Times said.

The China Times said Nicaragua owes Taiwan us$160 million dollars, and the total debt would be higher if Taipei's loans to Nicaragua extended through the Central American Integration System were also taken into account.

A day earlier, on June 21, Nicaraguan President Daniel Ortega said his government was waiting for Taiwan's reply regarding Managua's request for electricity-generation equipment.

China Times quoted Ortega as saying there would be no change in bilateral ties if the equipment is delivered and put into operation in October, in an apparent allusion to Nicaragua's conditions for continued diplomatic recognition of the island.

Since Costa Rica switched recognition from Taiwan to China on June 1, reports in the Taiwanese press have speculated that Nicaragua also planned to break ties with Taipei to recognize Beijing.

But Nicaraguan Foreign Minister Santos denied it, saying his country treasured its friendship with Taiwan.