 | |
Nicaragua - The Country
click to enlarge |
The Republic of Nicaragua has been a democracy since 1990 and all signs point that this process is continuing. Since 1990, there have been 4 democratic elections and the head of the military has changed every 5 years under civil authority. We see this democratic process continuing in the Presidential elections scheduled in November 2006.
Geographically, Nicaragua is the largest country in Central America with Managua as the Capital. Although, it is one of the poorest countries in the region with a population of 5.5 million people, it also has the lowest crime rate. |
| |
 |
The most recent IMF declarations have found the country essentially complying with its obligations and since January 2004 Nicaragua has qualified under the IMF criteria as a Heavily Indebted Poor Country. The IMF has also indicated that Nicaragua is broadly on track in its Three Year Arrangement under the Poverty Reduction and Growth Facility. Nicaragua's performance under this facility continues to be favorable in the opinion of the IMF. Since January 2004, Nicaragua has achieved forgiveness for 80% of its foreign debt owed to Paris Club nations.
In April 2006, Nicaragua signed the Dominican Republic & Central American Free Trade Agreement (DR-CAFTA) with the USA. Early reports from the Ministry of Industry, Development and Commerce indicate significant gains in revenues, foreign direct investment, and exports as compared to last year.
Currently, Nicaragua imports 100% of its crude and fuel oil requirements for power generation. The estimated cost of these imports in 2005 was $560 million. With energy prices continuing to escalate, the country is in desperate need of alternative sources of energy, particularly for electricity generation in order to meet increasing consumer demand and to foster economic growth.
| |
