Nicaragua project 524-0319 · 1991–1993 · financial sector

Program, follow-on to 5240300 and 5240311, to support the Government of Nicaragua's (GON) economic stabilization program, as well as ongoing efforts to reform financial markets, liberalize the foreign trade regime, and privatize state-owned enterprises. The program consists of a cash transfer of $135 million in ESF funds to be disbursed in four tranches. Program funds will be used in the following manner: up to $60 million for imports of petroleum, up to $20 million for imports of goods for the public sector, and the balance for imports of goods for the private sector. Local currency generations will be used to shore up the financial position of the Central Bank. Policy conditions for the first two tranches relate to achieving macroeconomic targets of the stabilization program announced on 3/3/91, specifically, targets for net foreign and domestic assets of the Central Bank, and net credit to the public sector. For the third and fourth tranches, disbursements will also be conditioned on progress in: (1) establishing private financial institutions offering a full range of financial services; (2) liberalizing international trade, to be demonstrated by non-discriminatory licensing

Source: DEC abstract, PD-ABE-100 (1991). The source's own text.