## Nicaragua: Enhanced Initiative for Heavily Indebted Poor Countries—Completion Point Document

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**Canonical URL:** [Nicaragua: Enhanced Initiative for Heavily Indebted Poor Countries—Completion Point Document](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0472.pdf)

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### Multilateral creditors and interim assistance
- IDB: assistance provided through the reduction of debt service payments to the IDB during 2001–19 on disbursed and outstanding debt as of end-December 1999. As of October 2003, about US$88 million had been provided as interim assistance.
- OPEC Fund:
  - Assistance under the enhanced HIPC Initiative amounts to US$15 million in NPV terms.
  - US$4 million were provided in 2002 through a concessional loan for US$10 million.
  - Part of these resources were used in 2002 to repay Nicaragua’s arrears toward the OPEC Fund; the remaining amount is being used to meet the repayment of principal and interest amounts on the debt owed to the OPEC.
  - It is expected that the balance of the assistance will be provided once Nicaragua reaches the completion point.
- IFAD and NDF:
  - IFAD: US$7 million (share of assistance under the enhanced HIPC Initiative).
  - NDF: US$3 million (share of assistance under the enhanced HIPC Initiative).
  - Delivery mechanism: reduction of 100 percent of debt service payments starting from the completion point; IFAD’s assistance administered through its own HIPC Trust Fund which will pay debt service on behalf of Nicaragua as it falls due until Trust Fund resources are exhausted. NDF uses a similar mechanism through the HIPC Trust Fund administered by IDA.
  - Estimated delivery horizons: IFAD assistance could be delivered until 2017; NDF assistance could be delivered until 2014.

### Bilateral and commercial creditors — relief and status
- Paris Club:
  - Paris Club creditors’ share of assistance under the enhanced HIPC Initiative amounts to US$0.9 billion.
  - Interim relief provided through a flow rescheduling under Cologne terms in December 2002.
  - Nicaragua has signed bilateral agreements with all Paris Club creditors except Israel.
  - Specific creditor treatments noted:
    - Finland cancelled 100 percent of the outstanding obligations.
    - Netherlands provided similar treatment on ODA debt and the debt consolidated in the December 2002 Agreed Minute.
    - Brazil provided 90 percent of relief through a stock operation.
  - Following completion point, most Paris Club creditors will provide assistance beyond that required under the enhanced HIPC Initiative.
- Non–Paris Club official creditors:
  - Total contribution amounts to US$1.2 billion in NPV terms.
  - Rescheduling agreements signed with the Czech Republic and Mexico before the decision point—considered sufficient for enhanced HIPC purposes.
  - During the interim period, agreements signed with Bulgaria, Guatemala, and Slovakia, accounting for 27 percent of the outstanding debt to non–Paris Club official creditors at end-1999.
  - Guatemala: outstanding debt US$487 million at decision point; swapped with Guatemalan debt to Spain and written down by 89 percent.
  - Bulgaria and Slovakia: debts written down by 90 percent, in line with Paris Club terms.
  - These three countries provided relief beyond the requirements of the enhanced HIPC Initiative.
- Commercial creditors:
  - The document lists commercial creditors in the debt stock table (see key statistics).

### Key debt stock figures (as presented in the table)
- Totals (In millions of U.S. dollars) — columns as shown in source:
  - Total: 6,412 6,956 4,523 4,542
  - Multilateral institutions: 2,154 2,156 1,554 1,556
  - Bilateral and commercial: 4,258 4,799 2,969 2,985
  - Paris Club: 1,625 1,633 1,205 1,194
  - Non-Paris Club official bilateral: 2,362 2,381 1,707 1,713
  - Commercial creditors: 271 785 5778
- Selected creditor entries (as shown in the table):
  - IBRD: 99 101 0
  - IDA: 597 597 252 252
  - IDB: 885 888 535 537
  - IMF: 155 155 113 113
  - CABEI: 3/ 448 448 603 603
  - OPEC Fund: 23 23 21 21
  - Finland: 15 15 88
  - Brazil: 128 128 42 42
  - Spain: 259 270 181 188
  - Guatemala: 487 487 486 486
  - Mexico: 646 457 57 57
  - Slovak Republic: 81 81 27 27
  - Taiwan, Province of China: 215 215 163 163
- Notes from the table:
  - Public and publicly guaranteed debt only.
  - Figures “after hypothetical full use of traditional debt-relief mechanisms.”
  - CABEI: NPV of debt before the application of the US$156 million interim assistance provided by CABEI through the 1997 Debt Relief Agreement.
  - FOCEM: Previous restructuring eliminated the balance of the debt, leaving only interest payments. NPV of debt is positive due to these future interest payments.

*Prepared by IMF and World Bank staff; information as of January 6, 2004.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2004/_cr0472.pdf_