Nicaragua has asked Taiwan to waive tens of millions of US dollars in debt, a Taiwanese official said Monday, upping the pressure on Taipei as it tries to keep its remaining allies in central America.
The request comes after Costa Rica shifted its allegiance to China after six decades of close ties with Taipei, sparking fears on the island that its other diplomatic partners in the region, including Managua, could follow suit. "Nicaragua thinks it is qualified to have its debts cut," Taiwan foreign ministry spokesman David Wang told AFP, adding that the request was under consideration.
"No final decision has been made. It will be reviewed on a case by case basis," he added, noting that in recent years, major creditor nations had written off huge debts owed by developing countries.
Wang would not say how much Nicaragua owed to Taiwan, but local newspapers put the figure at around 100 million US dollars. In 1985, then Nicaraguan president Daniel Ortega switched diplomatic recognition to Beijing, but that decision was reversed in 1990 when he was voted out of office.
With Ortega's re-election in November last year, rumours have swirled that Managua could once again move to establish formal ties with Beijing at Taipei's expense.
Local media also pointed out that Nicaragua was absent during a recent vote on Taiwan's latest bid to join the World Health Organisation, which was rebuffed.
Taiwan and China split in 1949 after a civil war and their leaders have since vied for international recognition. Latin America, the South Pacific and Africa have been the main diplomatic battlegrounds for the two sides, which have accused each other of luring allies away with "chequebook diplomacy."