Nicaragua president rejects OAS proposal on political crisis
Nicaraguan President Enrique Bolaños on Saturday rejected a proposal of the Organization of American States (OAS) on the country's current political crisis sparked by constitutional reforms.

The president dismissed the proposal as unacceptable as it goes against the "basic democratic principles," presidential aide Ernesto Leal told reporters.

But Leal declined to elaborate on details of the proposal by OAS Secretary General Jose Miguel Insulza.

"What I can say is that it is important to listen to the voice of people," he told reporters after a breakfast meeting between Insulza and Bolaños.

Insulza made no comments as he left the president's office after the meeting.

Government sources said Insulza' proposal calls on Bolaños to live with a more powerful legislature in exchange for peace with the two parties, the leftist Sandinista National Liberation Front and the right-wing Constitutional Liberal Party, which have vowed to impeach Bolaños.

Bolaños, for his part, has proposed a national referendum on lawmakers' efforts to reduce presidential powers, said Leal.

The proposal has been sent to the two parties, which have formed a stanch alliance against Bolaños.

The political crisis began late last year when the National Assembly revised the constitution, stipulating that leaders of public services organs will be appointed by parliament while the president's appointments of ministers and ambassadors should also gain the approval of lawmakers.

The government has repeatedly voiced opposition to the revision, saying it helped the opposition strip the president and the authorities of power.

Bolaños bases his arguments on a resolution of the Central American Court of Justice which considered Nicaragua's constitutional reforms inapplicable, saying they limit the power of the executive branch in appointing ministers and diplomats.

The crisis escalated last week when Congress designated new directors of public services organizations like a mail and phone firm to replace those named by Bolaños. The president ordered police to block the newly named officials from taking office.

The OAS secretary general, who arrived in Managua on Wednesday, could extend his stay until Sunday to continue his mediation mission, although some members of his delegation have already left, said OAS officials.