Connect to share and comment

Nicaragua does not need IMF funds: central bank

PlacardEnlarge
(Globalpost/GlobalPost)

MANAGUA (Reuters) - Nicaragua does not need funds from an International Monetary Fund program, but it did ask the IMF to act as an advisor for at least two years, central bank President Alberto Guevara said on Thursday as a two-week IMF mission to the country concluded.

Nicaragua had a $120 million financial aid package from the IMF that expired in 2011 and it had been in talks with the Washington-based lender over a new deal.

"We have to keep in mind that we can't invent programs if they're not necessary," said Guevara.

The IMF's deputy director for the western hemisphere, Miguel Savastano, said in August that after almost two years without an economic agreement, Nicaragua did not urgently need an IMF program because it had a solid and stable economy.

The leader of the IMF mission, Przemek Gajdeczka, said in a statement on Thursday that recent economic performance in Nicaragua has been favorable, with economic growth of 5.3 percent on average over the last two years.

"The (Nicaraguan) authorities and the IMF team plan to maintain a close relationship and a continuous and close dialogue," the statement said.

The next mission to Nicaragua is planned for September 2014.

(Reporting by Ivan Castro, additional reporting by Elinor Comlay)

http://www.globalpost.com/dispatch/news/thomson-reuters/130927/nicaragua-does-not-need-imf-funds-central-bank