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International Monetary Fund
The Executive Board of the International Monetary Fund (IMF) today completed the fourth and fifth review of economic developments in Nicaragua under the Credit Facility Extended (SCA) and agreed to extend the agreement until December 4th, 2011.
The extension involves a reprogramming of disbursements as provided in the agreement. The conclusion of the reviews enables the immediate disbursement of $ 19.97 million, while the remainder will be disbursed in two equal tranches of approximately $ 8.66 million in 2011. To date we have made disbursements totaling SDR 54.1 million (approximately U.S. $ 84.41 million).
All performance criteria has been me, except the concessions limit which was not achieved due to technical reasons and for which the Executive Board approved a waiver. Nicaragua has made considerable progress in the implementation of the supplementary agenda.
"The Nicaraguan economy is gradually recovering from the effects of global financial crisis. The rebound in activity in 2010 was broad and balanced, exports are rising more quickly than expected and financial systems have maintained their stability and liquidity. It is expected that GDP growth will reach 3% this year.
"The banking system remains strong, but the uncertainty surrounding the economic outlook calls for further strengthening and supervision. The implementation of recommendations in the Sector Assessment Program (FSAP) is to be a key priority, as well as the adoption of stricter regulations for the microfinance sector and cooperatives."
Source: International Monetary Fund
More on this topic
September 2010
The country and the IMF agreed to extend the three-year financial and economic program signed in October 2007 for two more months.
By signing the letter of intent (which must be ratified by the board of the International Monetary Fund-IMF), the economic program will conclude this next December and not on October 4th, as originally planned.
October 2011
The institution will award $8.8 million after approving the Extended Credit Facility agreement .
The agreement referred to was developed by the government and the IMF in line with the macroeconomic program for the period 2007 to 2011.
After having verified compliance with the requirements of the agreement, the IMF has decided to approve it and proceed with disbursements.
September 2010
The president of the central bank announced that they will request a year's extension for the program due to expire in October.
Antenor Rosales, Nicaraguan Central Bank president, indicated that the request to the International Monetary Fund (IMF) is to continue the program, which was signed in 2007, until 2011 (election year).
April 2010
On May, the board of the IMF could approve it and disburse $18 million, out of $35.6 pledged for 2010.
Antenor Rosales, president of the Central Bank of Nicaragua, stated that the Government successfully passed the fourth revision of its macroeconomic program with the International Monetary Fund (IMF), known as Extended Credit Facility (ECF).
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