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Nicaraguan Investment Conditionality Act of 2016 This bill directs the President to instruct the U.S. Executive Director at each international financial institution to use U.S. influence to oppose any loan or other fund use for the government of Nicaragua's benefit, other than for basic human needs or to promote democracy, unless the Department of State certifies that Nicaragua is taking effective steps to: (1) hold elections overseen by credible domestic and international electoral observers, (2) promote democracy and an independent judiciary system and electoral council, (3) strengthen the rule of law, and (4) respect the right to freedom of association and expression. The President shall direct the U.S. Permanent Representative to the Organization of American States to use U.S. influence to advocate for an Electoral Observation Mission to be sent to Nicaragua in 2016 and 2017.

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