IMF Approves $86 Million In Multilaterial Funding

Despite increasing international concerns about Nicaragua’s governance issues, the International Monetary Fund (IMF) – which President Daniel Ortega has long railed against – threw the Sandinista government a much-needed lifeline yesterday by approving the second and third reviews of the country’s economic performance, qualifying Nicaragua to receive a combined total of $85.9 million, with an immediate disbursement of $85.9 million, according the IMF.

The decision by the IMF, which had effectively frozen aid to Nicaragua since the end of 2008, will provide much needed funding to the cash-strapped government, which has already had to cut its 2009 budget on three occasions this year.

The IMF stressed, “Strengthening governance and the business climate will be critical to leverage donor support and improve growth prospects.”