Less than a week after Hurricane Felix devastated much of the Northern Autonomous Atlantic Region (RAAN), the Nicaraguan bank LAFISE Bancentro and the US government's Overseas Private Investment Corporation (OPIC) had already hammered out a loan program. Under the deal, OPIC will grant US$7 million to Bancentro, and Bancentro will in turn disburse the money in small sums at a fixed interest rate. But RAAN's former governor, Mirna Cunningham, says the program will have limited reach and further accuses OPIC and LAFISE of opportunism. She suspects that LAFISE's real interests lie in the energy industry. LAFISE's president dismisses the charges and insists that the program – and the hurricane itself – represent an unprecedented opportunity for development in the region.

Former president Álvaro Arzú, who won the mayorship of Guatemala City for the third time with 55% of the votes, has made the Town Hall his personal fiefdom. Arzú's political clout is such that the country's two main political parties, the social-democrat National Unity of Hope (UNE) and far-right Patriot Party (PP) decided not to put forward a mayoral candidate for Guatemala City, as they dared not compete with the almighty mayor. So how could Arzú, of the conservative unionista party win the election despite the persistence of serious urban problems such as a chronic water shortage in working class neighborhoods, a poor public transport network and the absence of an efficient waste processing system? Many argue that Arzú has used his position as mayor to build a small-scale government within the national government with the backing of the powerful García-Granados family. Now Arzú appears to be grooming his son Roberto as his successor to the mayoral throne. With an overwhelming unionista majority in the Twon Hall and no real opponents on the horizon who can stand in his way?

By Louisa Reynolds

One year after the ratification of the US- Dominican Republic - Central America Free Trade Agreement (DR-CAFTA), the purported benefits of the agreement, such as increased foreign investment and exports, have yet to materialize. Far from boosting exports, tax revenues have fallen throughout the region and imports have risen dramatically. Costa Rica , which has yet to sign the treaty and faces an imminent referendum on the issue has maintained high levels of foreign investment and has the highest exports of the region. CAFTA's opponents in Costa Rica see these figures as a clear warning of what could happen if the treaty's advocates get their way.

The US-based Arcadia Foundation recently denounced the Honduran business Cable Color for trafficking in illegal phone calls. Furthermore, Roberto Carmona Borjas, the Foundation's Venezuelan vice-president, announced to the national and international press that the head of Hondutel , Honduras 's state-owned telecommunications company, was possibly paid off to hide these alleged crimes. Cable Color is owned by the political and publishing Rosenthal family and it promptly fired back, accusing the Foundation of having ulterior motives for making its accusations.

By Nicolás Masci

Translated by Matthew Brooke