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Nicaragua: Staff Report for the 2002 Article IV Consultation and Requests for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility and for Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries

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  • International Monetary Fund

Abstract

This paper assesses Nicaragua’s 2002 Article IV Consultation and Requests for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) and for Interim Assistance Under the Enhanced Initiative for Heavily Indebted Poor Countries (HIPC). A key program objective is medium-term fiscal sustainability. This will require a significant reduction of primary spending, while protecting poverty-reducing outlays, and an increase in tax revenues. The IMF staff recommends that the authorities’ request for a new three-year PRGF arrangement and interim HIPC assistance be approved.

Suggested Citation

  • International Monetary Fund, 2003. "Nicaragua: Staff Report for the 2002 Article IV Consultation and Requests for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility and for Interim Assistance Under the Enhanced Ini," IMF Staff Country Reports 2003/024, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:2003/024
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