News Briefs

Nicaragua and the IMF

The IMF's Poverty Reduction and Growth Facility (PRGF) -- A Factsheet




News Brief No. 02/125
December 13, 2002
International Monetary Fund
700 19th Street, NW
Washington, D.C. 20431 USA

IMF Gives Final Approval of PRGF Arrangement and Interim Assistance for Nicaragua

The Executive Board of the International Monetary Fund (IMF) has given its final approval of a three-year arrangement under the Poverty Reduction and Growth Facility (PRGF) for Nicaragua for SDR 97.50 million (about US$129 million) to support the government's 2002-05 economic program. The Executive Board also gave its final approval of Nicaragua's request for SDR 1.88 million (about US$2.5 million) in interim assistance under the Heavily Indebted Poor Countries (HIPC) Initiative (see Press Release No. 02/53).

The final decisions by the IMF Executive Board were contingent on a decision by the Executive Board of the World Bank on December 11, 2002. That decision concluded that Nicaragua's Poverty Reduction Strategy Paper (PRSP) provided a sound basis for World Bank concessional assistance.

These decisions entitle Nicaragua to the release of SDR 6.97 million (about US$9 million) under the PRGF arrangement, and of SDR 1.88 million (about US$2.5 million) in interim assistance under the HIPC Initiative.




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