Luxembourg's Ministry of Foreign and European Affairs has announced a freeze on all financial support to Nicaragua due to the current situation in the South American country.

Nicaragua has been a partner country of the Luxembourg Cooperation since the 1990s. The cooperation has always been based on respect for human rights and democratic values and because of the current situation, Luxembourg has taken the necessary measures, including a freeze on disbursements to the government and a freeze on the signing process of the new Indicative Cooperation Program with the Government of Nicaragua. Luxembourg is strengthening its support for civil society and human rights organizations on the ground, and is also focusing on the regional aspects of cooperation in Central America.

Jean Asselborn, Minister of Foreign and European Affairs, and Romain Schneider, Minister of Cooperation and Humanitarian Action, expressed their deep concern over the deteriorating situation in Nicaragua and strongly condemn the escalation of violence, repression and arbitrary detentions. The ministers offer their condolences to the victims and demand that those responsible for the violence be brought to justice.

Like the European Union, Luxembourg calls on the parties in Nicaragua to put an immediate end to the violence and to respect human rights. It also stresses the need to implement all the recommendations of the Inter-American Commission on Human Rights (IACHR).

Luxembourg has decided to financially support the IACHR's strategy aimed at contributing to the peaceful resolution of the crisis in Nicaragua, notably the IACHR Mechanism for the Follow-up of Recommendations (MESENI) and the Interdisciplinary Group of Independent Experts (GIEI).

On 17 July 2018, the High Representative of the European Union for Foreign Affairs and Security Policy and Vice-President of the European Commission, Federica Mogherini, informed the Government of Nicaragua that in response to the request of the participants in the national dialogue, the European Union is ready to accompany and support the national dialogue. This applies in particular to the Commission of Democratization and Electoral Matters, in order to initiate the necessary reforms to implement a timely and fully democratic electoral process. Luxembourg is ready to support the national dialogue within the European framework.