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Conditionality

News

Debt relief money diverted in Nicaragua

26 May 2003

A new report shows that debt relief in Nicaragua is only partly going to poverty reduction. The expected relief from debt servicing for 2003 is nearly $214 million, however the national budget indicates that only $98.4 million was set aside for poverty reduction expenditure. The report says this is because the government is prioritising – with IMF support – internal debt payments to the private sector. Nicaragua is on the IMF’s Board agenda for June.