Nicaragua project 524-0325 · 1992 · macroeconomic foundation for growth

Program to provide balance of payments and debt servicing assistance to help the Government of Nicaragua (GON) to stabilize Nicaragua's economy and enact structural reforms in the areas of exchange market and trade liberalization, financial market reform, and increased competition. A cash grant of $40 million will be provided to the GON for use in servicing debt to multilateral organizations and in financing imports of raw materials, spare parts, other goods. No local currency will be generated. Conditions precedent will include the following. (1) The GON will produce a letter indicating its compliance with the macroeconomic stabilization and recovery program approved by the International Monetary Fund. (2) In the area of exchange market liberalization, the GON will, inter alia, eliminate the requirement that private exporters surrender foreign exchange earnings to the Central Bank, eliminate requirements for Central Bank approval of the purchase of foreign exchange for imports (except for foreign exchange involving the Bank's own or donor resources), and guarantee the right of all investors to purchase foreign exchange and to repatriate current earnings and capital. (3) With r

Source: DEC abstract, PD-ABI-214 (1992). The source's own text.