IMF’s absurd demands on Nicaragua

22 September 2009

Nicaragua complained in July that the IMF made “absurd demands” when it asked the government to end tax exemptions on non-profit entities. The Nicaraguan president’s economic advisor, Bayardo Arce, said: “Catholic and Protestant churches, non-governmental organisations, civil associations that bring donations into the country, which contribute to alleviating the situation of poverty confronting our people, could not continue bringing those donations.” He called the IMF advice on abandoning pension increases “absolutely unacceptable”. Nicaragua signed a PRGF agreement in 2007, and reached staff-level agreement in September with the Fund over its next programme review.