Abstract
Context. Commitment to macroeconomic stability has characterized government policies. Over the last three years, real GDP growth has averaged 4.8 percent, one of the highest in the region, while inflation has remained anchored by the exchange rate regime. The external current account deficit has declined, reflecting a smaller oil bill due to both lower oil prices and increased reliance on renewable energy sources. Outlook and Risks. A moderate deceleration in real growth is projected in 2015 followed by a small pickup in 2016, owing to the projected recovery in foreign demand and an increase in election-related spending. Poverty has fallen sharply but unemployment has edged up due in part to a decline in manufacturing activity. The fiscal stance has become modestly more expansionary and, as a result, public debt ratios are expected to stabilize in contrast with the reduction envisaged in previous consultations. Risks are, however, tilted to the downside. A deterioration in the financial terms or levels of the Venezuela oil cooperation could increase pressures to absorb quasi-fiscal spending into the budget. Structurally weak growth in key advanced and emerging economies and a persistent decline in prices of major export products would also negatively impact Nicaragua.
Fund Relations
(As of October 31, 2015)
Membership Status: Joined: March 14, 1946; Article VIII
General Resources Account:
| SDR Million | %Quota | |
|---|---|---|
| Quota | 130.00 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 130.01 | 100.01 |
| Reserve Tranche Position | 0.00 | 0.00 |
| SDR Million | %Quota | |
|---|---|---|
| Quota | 130.00 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 130.01 | 100.01 |
| Reserve Tranche Position | 0.00 | 0.00 |
SDR Department:
| SDR Million | %Allocation | |
|---|---|---|
| Net cumulative allocation | 124.54 | 100.00 |
| Holdings | 103.51 | 83.11 |
| SDR Million | %Allocation | |
|---|---|---|
| Net cumulative allocation | 124.54 | 100.00 |
| Holdings | 103.51 | 83.11 |
Outstanding Purchases and Loans:
| SDR Million | %Quota | |
|---|---|---|
| ECF Arrangements | 69.48 | 53.44 |
| SDR Million | %Quota | |
|---|---|---|
| ECF Arrangements | 69.48 | 53.44 |
Latest Financial Arrangements:
Projected Payments to Fund 2/
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | ||||||
| Principal | 3.77 | 20.90 | 15.60 | 13.22 | 9.54 | |||||
| Charges/Interest | 0.00 | 0.01 | 0.01 | 0.01 | 0.04 | |||||
| Total | 3.77 | 20.91 | 15.61 | 13.23 | 9.58 | |||||
| Forthcoming | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | ||||||
| Principal | 3.77 | 20.90 | 15.60 | 13.22 | 9.54 | |||||
| Charges/Interest | 0.00 | 0.01 | 0.01 | 0.01 | 0.04 | |||||
| Total | 3.77 | 20.91 | 15.61 | 13.23 | 9.58 | |||||
Implementation of HIPC Initiative:
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| I. Commitment of HIPC assistance | Enhanced Framework |
| Decision point date | Dec 2000 |
| Assistance committed | |
| by all creditors (US$ Million) 1/ | 3,308.00 |
| Of which: IMF assistance (US$ million) | 82.20 |
| (SDR equivalent in millions) | 63.54 |
| Completion point date | Jan 2004 |
| II. Disbursement of IMF assistance (SDR Million) | |
| Assistance disbursed to the member | 63.54 |
| Interim assistance | 2.55 |
| Completion point balance | 60.99 |
| Additional disbursement of interest income 2/ | 7.62 |
| Total disbursements | 71.16 |
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
| I. Commitment of HIPC assistance | Enhanced Framework |
| Decision point date | Dec 2000 |
| Assistance committed | |
| by all creditors (US$ Million) 1/ | 3,308.00 |
| Of which: IMF assistance (US$ million) | 82.20 |
| (SDR equivalent in millions) | 63.54 |
| Completion point date | Jan 2004 |
| II. Disbursement of IMF assistance (SDR Million) | |
| Assistance disbursed to the member | 63.54 |
| Interim assistance | 2.55 |
| Completion point balance | 60.99 |
| Additional disbursement of interest income 2/ | 7.62 |
| Total disbursements | 71.16 |
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.
Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.
Definitions:
Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed.
Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances).
Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| Implementation of Multilateral Debt Relief Initiative (MDRI): | ||||
| I. MDRI-eligible debt (SDR Million)1/ | 140.48 | |||
| Financed by: MDRI Trust | 91.79 | |||
| Remaining HIPC resources | 48.70 | |||
| II. Debt Relief by Facility (SDR Million) | ||||
| Eligible Debt | ||||
| Delivery Date | GRA | PRGT | Total | |
| January 2006 | N/A | 140.48 | 140.48 | |
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| Implementation of Multilateral Debt Relief Initiative (MDRI): | ||||
| I. MDRI-eligible debt (SDR Million)1/ | 140.48 | |||
| Financed by: MDRI Trust | 91.79 | |||
| Remaining HIPC resources | 48.70 | |||
| II. Debt Relief by Facility (SDR Million) | ||||
| Eligible Debt | ||||
| Delivery Date | GRA | PRGT | Total | |
| January 2006 | N/A | 140.48 | 140.48 | |
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable
Exchange Rate Arrangements:
In December 1995, the Monetary Board of the central bank approved the unification of the exchange rate system effective January 1, 1996. With the unification of the exchange rate, all previous exchange restrictions on payments and transfers for current international transactions and multiple currency practices were eliminated. The central bank buys/sells any amount of foreign currency from/to financial institutions at the official exchange rate, and implements a crawling peg system. Since December 2004, the monthly crawl has been set at an annual rate of 5 percent. As of November 30, 2015, the official exchange rate was C$27.8128 per U.S. dollar. Nicaragua has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.
Article IV Consultation:
The previous consultation was completed by the Executive Board on December 4, 2013 (Country Report No. 13/377).
Safeguards Assessment:
An updated safeguards assessment of the Central Bank of Nicaragua (BCN), required in conjunction with the September 2008 augmentation of access under the PRGF arrangement, was completed in January 2009. The assessment noted continued progress at the BCN in the areas of International Financial Reporting Standards (IFRS) implementation and reserve management operations. Timely publication of the audited financial statements is in place in accordance with the Safeguards Policy. However, while the 2014 financial statements were audited and published on the BCN’s website, the external audit opinion is qualified due to the uncertainty and valuation surrounding government debt. Further, implementation of IFRS remains outstanding. The Safeguards Policy requires strong financial reporting principles and practices that ensure transparency of the bank’s financial statements.
FSAP Participation:
An FSAP update was completed in October 2009, and the Financial System Stability Assessment report for Nicaragua was issued on April 28, 2010.
Technical Assistance:
Nicaragua has received substantial technical assistance. The schedule below details assistance provided since 2013.
| Dept. | Purpose | Time of Delivery |
|---|---|---|
| CAPTAC | Credit Risk Stress Testing | November 2015 |
| CAPTAC | Developing Market Risk Analysis Methodologies | May-July 2015 |
| CAPTAC | Strengthening the Monetary Policy Operational Framework | April 2015 |
| CAPTAC | BOP and IIP Statistics | 2013-2015 |
| CAPTAC | National Account Statistics | 2011-2015 |
| CAPTAC | Simulation Exercise of Banking Resolution | 2013 |
| CAPTAC | Medium-Term Budgeting Framework | 2010-2013 |
| CAPTAC | Customs Administration | 2012-2013 |
| CAPTAC | Strengthening Analysis of Tax Expenditure and Evasion | 2012-2013 |
| CAPTAC | Tax Administration | 2012-2013 |
| FAD | Government Accounting and Fiscal Statistics | June-September 2015 |
| FAD | Advancing Tax Reform to Promote Equity and Growth | December 2014 |
| FAD | Reform of Electricity and Public Transportation Subsidies | April-September 2014 |
| FAD | Public Financial Management | October 2013 |
| FAD | Customs | September 2013 |
| FAD | Public Financial Management | August 2013 |
| FAD | Customs | July 2013 |
| FAD | Public Financial Management | June 2013 |
| FAD | Customs | April 2013 |
| MCM | Debt Management and Domestic Market Development | July-November 2015 |
| MCM | Risk-based Supervision | Sept. 2014-Feb 2015 |
| MCM | Liquidity Stress Testing | July 2014 |
| MCM | Dev. Sectoral and Macroeconomic Reports | October 2013 |
| MCM | Debt Management Strategy | July 2013 |
| MCM | Sovereign Bond Issuance | June 2013 |
| MCM | Risk-based Supervision | June 2013 |
| MCM | Bank Supervision and Regulations | April 2013 |
| MCM | Monetary and Foreign Exchange Policy | January 2013 |
| STA | Financial Soundness Indicators | April 2015 |
| STA | Balance of Payments Statistics BPM6-IIP | June 2013 |
| STA | Balance of Payments Statistics BPM6-Financial Account | March 2013 |
| STA | Nat. Acc. Employment matrix | February 2013 |
| STA | Producer Price Index | February 2013 |
| STA | Export/Import Price Index | January 2013 |
| Dept. | Purpose | Time of Delivery |
|---|---|---|
| CAPTAC | Credit Risk Stress Testing | November 2015 |
| CAPTAC | Developing Market Risk Analysis Methodologies | May-July 2015 |
| CAPTAC | Strengthening the Monetary Policy Operational Framework | April 2015 |
| CAPTAC | BOP and IIP Statistics | 2013-2015 |
| CAPTAC | National Account Statistics | 2011-2015 |
| CAPTAC | Simulation Exercise of Banking Resolution | 2013 |
| CAPTAC | Medium-Term Budgeting Framework | 2010-2013 |
| CAPTAC | Customs Administration | 2012-2013 |
| CAPTAC | Strengthening Analysis of Tax Expenditure and Evasion | 2012-2013 |
| CAPTAC | Tax Administration | 2012-2013 |
| FAD | Government Accounting and Fiscal Statistics | June-September 2015 |
| FAD | Advancing Tax Reform to Promote Equity and Growth | December 2014 |
| FAD | Reform of Electricity and Public Transportation Subsidies | April-September 2014 |
| FAD | Public Financial Management | October 2013 |
| FAD | Customs | September 2013 |
| FAD | Public Financial Management | August 2013 |
| FAD | Customs | July 2013 |
| FAD | Public Financial Management | June 2013 |
| FAD | Customs | April 2013 |
| MCM | Debt Management and Domestic Market Development | July-November 2015 |
| MCM | Risk-based Supervision | Sept. 2014-Feb 2015 |
| MCM | Liquidity Stress Testing | July 2014 |
| MCM | Dev. Sectoral and Macroeconomic Reports | October 2013 |
| MCM | Debt Management Strategy | July 2013 |
| MCM | Sovereign Bond Issuance | June 2013 |
| MCM | Risk-based Supervision | June 2013 |
| MCM | Bank Supervision and Regulations | April 2013 |
| MCM | Monetary and Foreign Exchange Policy | January 2013 |
| STA | Financial Soundness Indicators | April 2015 |
| STA | Balance of Payments Statistics BPM6-IIP | June 2013 |
| STA | Balance of Payments Statistics BPM6-Financial Account | March 2013 |
| STA | Nat. Acc. Employment matrix | February 2013 |
| STA | Producer Price Index | February 2013 |
| STA | Export/Import Price Index | January 2013 |
Resident Representative:
Mr. Juan Zalduendo assumed the position of Resident Representative in Nicaragua in March 2013.
Bank-Fund Country Level Joint Managerial Action Plan, 2015-16
| Products | Mission timing | Expected delivery | |
|---|---|---|---|
| A. Mutual information on relevant work programs | |||
| The Fund work program | |||
| Strategy: Since the last IMF-supported program ended in October 2011, the focus has shifted to a relationship based on bilateral surveillance and technical assistance, with close engagement with the authorities facilitated through the Resident Representative office. Technical assistance has been extensive, and has been focused on a range of different topics, including statistics, tax policy, subsidy reform, and financial market development. The last IMF staff visit was in March 2015 and the last Article IV mission took place in October 2015. | |||
| Article IV | October 2015 | Board discussion January 2016 | |
| LEG/MCM TA on deposit insurance | November 2015 | FY2016 | |
| MCM TA (joint with World Bank) on strengthening the public debt office and developing the domestic debt market | Series of missions during 2015/16 | ||
| Staff Visit | April 2016 | ||
| The World Bank work program | |||
| Strategy: The Bank’s ongoing operations and analytical activities with Nicaragua are contemplated under the Country Assistance Strategy (CAS) 2013-2017 with a focus on social welfare through improvement of people’s access to basic services and a heightened concern on issues of productivity, competitiveness, and export diversification. Additionally, the IFC’s strategy focuses on fostering sustainable economic growth, critical infrastructure, and job creation, and helping Nicaragua take advantage of regional integration opportunities. | |||
| The Bank will start working on the first Systemic Country Diagnosis (SCD), expected to be ready by December 2016. The SCD will identifies the most important challenges and opportunities at the country level, and will inform the partnership with Nicaragua as established in the new approach to country engagement—the Country Partnership Framework (CPF). The CPF will take the place of the CAS and guides the Bank Group’s support to a member country. | |||
| A. Lending | |||
| A.1 Strengthening the Public Health Care System | TBD | Approved in June 2015 | |
| A.2 Caribbean Coast Food Security Project | TBD | Approved in February 2015 | |
| B. Technical assistance and analytical work | |||
| B.1. Constraints and Opportunities Analysis: Transformation of the Agricultural Sector | TBD | Final delivery by September 2015 | |
| B.2. Regional Social Expenditure and Institutional Review | TBD | Final delivery by May 2016 | |
| B.3. Regional Enhancing Disaster Risk Management | TBD | Final delivery by June 2016 | |
| B.4. Regional Central America Energy Assessment | TBD | Final delivery by June 2018 | |
| B.5. Regional Trade Facilitation | TBD | Final delivery by April 2017 | |
| B.6. Regional PPP | TBD | Final delivery by June 2019 | |
| B.7. 2016 - 2021 Education Sector Strategy Preparation | TBD | Final delivery by June 2016 | |
| B.8. Central America Migration and Shared Prosperity | In progress | ||
| Products | Mission timing | Expected delivery | |
|---|---|---|---|
| A. Mutual information on relevant work programs | |||
| The Fund work program | |||
| Strategy: Since the last IMF-supported program ended in October 2011, the focus has shifted to a relationship based on bilateral surveillance and technical assistance, with close engagement with the authorities facilitated through the Resident Representative office. Technical assistance has been extensive, and has been focused on a range of different topics, including statistics, tax policy, subsidy reform, and financial market development. The last IMF staff visit was in March 2015 and the last Article IV mission took place in October 2015. | |||
| Article IV | October 2015 | Board discussion January 2016 | |
| LEG/MCM TA on deposit insurance | November 2015 | FY2016 | |
| MCM TA (joint with World Bank) on strengthening the public debt office and developing the domestic debt market | Series of missions during 2015/16 | ||
| Staff Visit | April 2016 | ||
| The World Bank work program | |||
| Strategy: The Bank’s ongoing operations and analytical activities with Nicaragua are contemplated under the Country Assistance Strategy (CAS) 2013-2017 with a focus on social welfare through improvement of people’s access to basic services and a heightened concern on issues of productivity, competitiveness, and export diversification. Additionally, the IFC’s strategy focuses on fostering sustainable economic growth, critical infrastructure, and job creation, and helping Nicaragua take advantage of regional integration opportunities. | |||
| The Bank will start working on the first Systemic Country Diagnosis (SCD), expected to be ready by December 2016. The SCD will identifies the most important challenges and opportunities at the country level, and will inform the partnership with Nicaragua as established in the new approach to country engagement—the Country Partnership Framework (CPF). The CPF will take the place of the CAS and guides the Bank Group’s support to a member country. | |||
| A. Lending | |||
| A.1 Strengthening the Public Health Care System | TBD | Approved in June 2015 | |
| A.2 Caribbean Coast Food Security Project | TBD | Approved in February 2015 | |
| B. Technical assistance and analytical work | |||
| B.1. Constraints and Opportunities Analysis: Transformation of the Agricultural Sector | TBD | Final delivery by September 2015 | |
| B.2. Regional Social Expenditure and Institutional Review | TBD | Final delivery by May 2016 | |
| B.3. Regional Enhancing Disaster Risk Management | TBD | Final delivery by June 2016 | |
| B.4. Regional Central America Energy Assessment | TBD | Final delivery by June 2018 | |
| B.5. Regional Trade Facilitation | TBD | Final delivery by April 2017 | |
| B.6. Regional PPP | TBD | Final delivery by June 2019 | |
| B.7. 2016 - 2021 Education Sector Strategy Preparation | TBD | Final delivery by June 2016 | |
| B.8. Central America Migration and Shared Prosperity | In progress | ||
The table below summarizes the financial relations between Nicaragua and the World Bank (in millions of US dollars).
| Project Name | Total loan or grant | Undisbursed through FY15 | Projected disbursements in FY16 |
|---|---|---|---|
| Second support to the education sector | 25.0 | 7.0 | 4.8 |
| Education sector strategy support | 51.9 | 27.1 | 16.3 |
| Climate adaptation and water (GEF) | 6.0 | 4.2 | 1.3 |
| Caribbean coast food security | 42.0 | 31.4 | 5.6 |
| Public financial management modernization | 25.0 | 24.0 | 8.8 |
| Community and family health care services | 21.0 | 10.8 | 6.5 |
| Strengthening the public health care system | 60.0 | 60.0 | 13.5 |
| Social protection | 19.5 | 6.5 | 3.3 |
| Second land administration project | 40.0 | 14.9 | 5.7 |
| Rural roads infrastructure improvement project | 57.0 | 44.2 | 21.3 |
| Sustainable rural water supply and sanitation sector | 30.0 | 28.5 | 6.4 |
| Project Name | Total loan or grant | Undisbursed through FY15 | Projected disbursements in FY16 |
|---|---|---|---|
| Second support to the education sector | 25.0 | 7.0 | 4.8 |
| Education sector strategy support | 51.9 | 27.1 | 16.3 |
| Climate adaptation and water (GEF) | 6.0 | 4.2 | 1.3 |
| Caribbean coast food security | 42.0 | 31.4 | 5.6 |
| Public financial management modernization | 25.0 | 24.0 | 8.8 |
| Community and family health care services | 21.0 | 10.8 | 6.5 |
| Strengthening the public health care system | 60.0 | 60.0 | 13.5 |
| Social protection | 19.5 | 6.5 | 3.3 |
| Second land administration project | 40.0 | 14.9 | 5.7 |
| Rural roads infrastructure improvement project | 57.0 | 44.2 | 21.3 |
| Sustainable rural water supply and sanitation sector | 30.0 | 28.5 | 6.4 |
Relations with the Inter-American Development Bank
(As of October 15, 2015)
1. In November 2012, the IADB approved its country strategy for Nicaragua for the period 2012–2017. It focused on the following sectors: (i) energy; (ii) transportation; (iii) health; and (iv) comprehensive early childhood development (ECD). The strategy pays particular attention to rural zones where poverty is concentrated, and where there is potential to develop value chains.
2. As of October 15th 2015, the portfolio of approved sovereign-guaranteed loans under execution amounted to US$789.8 million, with an undisbursed balance of US$451.1 million.
3. The existing sovereign guaranteed portfolio focuses on: (i) health, 29 percent; (ii) transport, 28 percent; (iii) energy, 14 percent; and (iv) trade, 12 percent. In the private sector, the IADB has two non-sovereign projects under execution amounting to US$42 million that contribute to the competitiveness of the country.
4. The pipeline for IADB approvals in 2015 includes five operations in the public sector for US$275.7 million distributed as follows: (i) two operations related to energy for US$105 million, focused on: (a) electrification in rural areas, and (b) a Policy-Based Loan to improve the institutional strengthening of the sector; (ii) one operation in the transport sector for US$90.7 million for the improvement of road infrastructure in rural areas; (iii) US$55 million to improve the infrastructure and systems for trade and border integration, and (iv) US$25 million to increase coverage of broad band connectivity. As of October 15th, three operations for US$120 million have been approved, and the rest of the pipeline will be approved in the last trimester of the year.
IADB Sovereign Guaranteed Loan Portfolio in Nicaragua
As of October 15th 2015 (In millions of US Dollars)
In process of closing
IADB Sovereign Guaranteed Loan Portfolio in Nicaragua
As of October 15th 2015 (In millions of US Dollars)
| Sector | Current Approved | Available Amount |
|---|---|---|
| Transport | 235.7 | 128.2 |
| Health | 196.2 | 131.2 |
| Energy | 128.0 | 62.8 |
| Trade | 55.0 | 55.0 |
| Agriculture and Rural Development | 40.0 | 31.7 |
| Social Investment/ECD | 35.0 | 10.8 |
| Water and Sanitation | 30.0 | 4.7 |
| Urban Development and Housing* | 20.0 | 0.0 |
| Private Firms and SME Development | 20.0 | 17.6 |
| Modernization of the State | 10.0 | 5.9 |
| Environment and Natural Disasters | 10.0 | 0.5 |
| Sustainable Tourism | 10.0 | 2.7 |
| Total | 789.9 | 451.1 |
In process of closing
IADB Sovereign Guaranteed Loan Portfolio in Nicaragua
As of October 15th 2015 (In millions of US Dollars)
| Sector | Current Approved | Available Amount |
|---|---|---|
| Transport | 235.7 | 128.2 |
| Health | 196.2 | 131.2 |
| Energy | 128.0 | 62.8 |
| Trade | 55.0 | 55.0 |
| Agriculture and Rural Development | 40.0 | 31.7 |
| Social Investment/ECD | 35.0 | 10.8 |
| Water and Sanitation | 30.0 | 4.7 |
| Urban Development and Housing* | 20.0 | 0.0 |
| Private Firms and SME Development | 20.0 | 17.6 |
| Modernization of the State | 10.0 | 5.9 |
| Environment and Natural Disasters | 10.0 | 0.5 |
| Sustainable Tourism | 10.0 | 2.7 |
| Total | 789.9 | 451.1 |
In process of closing
IADB Non-sovereign Guaranteed Loan Portfolio in Nicaragua
As of October 15th 2015 (In millions of US Dollars)
IADB Non-sovereign Guaranteed Loan Portfolio in Nicaragua
As of October 15th 2015 (In millions of US Dollars)
| Sector | Current Approved | Available Amount |
|---|---|---|
| Private Firms and SME Development | 30.0 | 30.0 |
| Agriculture and Rural Development | 12.0 | 12.0 |
| Total | 42.0 | 42.0 |
IADB Non-sovereign Guaranteed Loan Portfolio in Nicaragua
As of October 15th 2015 (In millions of US Dollars)
| Sector | Current Approved | Available Amount |
|---|---|---|
| Private Firms and SME Development | 30.0 | 30.0 |
| Agriculture and Rural Development | 12.0 | 12.0 |
| Total | 42.0 | 42.0 |
IADB Disbursement of Sovereign Guaranteed Loan Portfolio in Nicaragua 2010–2014
(In millions of US Dollars)
IADB Disbursement of Sovereign Guaranteed Loan Portfolio in Nicaragua 2010–2014
(In millions of US Dollars)
| Year | Amount |
|---|---|
| 2010 | 147.9 |
| 2011 | 154.8 |
| 2012 | 168.3 |
| 2013 | 154.7 |
| 2014 | 169.7 |
IADB Disbursement of Sovereign Guaranteed Loan Portfolio in Nicaragua 2010–2014
(In millions of US Dollars)
| Year | Amount |
|---|---|
| 2010 | 147.9 |
| 2011 | 154.8 |
| 2012 | 168.3 |
| 2013 | 154.7 |
| 2014 | 169.7 |
IADB Annual Net Flows with Sovereign Guarantee 2010–2014
(In millions of US Dollars)
IADB Annual Net Flows with Sovereign Guarantee 2010–2014
(In millions of US Dollars)
| 2010 | 2011 | 2012 | 2013 | 2014 | |
|---|---|---|---|---|---|
| Repayments | −11.3 | −13.0 | −14.0 | −15.2 | −17.8 |
| Disbursement | 147.9 | 154.8 | 168.3 | 154.7 | 169.7 |
| Net Loan Flow | 136.6 | 141.7 | 154.3 | 139.5 | 151.8 |
| Subscriptions and Contributions | −1.2 | −4.7 | −6.1 | −6.1 | −6.7 |
| Net Capital Flow | 135.4 | 137.1 | 148.2 | 133.4 | 145.1 |
| Interest and Charges | −10.1 | −12.3 | −14.8 | −18.7 | −22.1 |
| Net Cash Flow | 125.3 | 124.8 | 133.4 | 114.7 | 123.0 |
IADB Annual Net Flows with Sovereign Guarantee 2010–2014
(In millions of US Dollars)
| 2010 | 2011 | 2012 | 2013 | 2014 | |
|---|---|---|---|---|---|
| Repayments | −11.3 | −13.0 | −14.0 | −15.2 | −17.8 |
| Disbursement | 147.9 | 154.8 | 168.3 | 154.7 | 169.7 |
| Net Loan Flow | 136.6 | 141.7 | 154.3 | 139.5 | 151.8 |
| Subscriptions and Contributions | −1.2 | −4.7 | −6.1 | −6.1 | −6.7 |
| Net Capital Flow | 135.4 | 137.1 | 148.2 | 133.4 | 145.1 |
| Interest and Charges | −10.1 | −12.3 | −14.8 | −18.7 | −22.1 |
| Net Cash Flow | 125.3 | 124.8 | 133.4 | 114.7 | 123.0 |
Statistical Issues
(As of November 30, 2015)
| Assessment of Data Adequacy for Surveillance | ||
|---|---|---|
| General. Data provision is broadly adequate for surveillance but there are numerous data shortcomings in national accounts, fiscal, debt, and external sector statistics. | ||
| National Accounts. The Central Bank of Nicaragua (BCN) changed the base year of the annual national accounts (NA) to 2006 and is finishing the implementation of the complete set of integrated economic accounts by institutional sector in accordance with the recommendations of the System of National Accounts 1993 (1993 SNA) and the classifications and most relevant recommendations of the 2008 SNA for which source data are available. In March 2015, while releasing the 2014 NA data, the BCN revised earlier years, specifically the 2010–13 data. These revisions introduced a number of refinements (i.e., update of trade and producer price indexes, use of a new employment matrix, revised agricultural production, and, in particular, addressed discrepancies between NA and the balance of payments (BOP) trade data in the tax-free zones). However, these revisions led to some discontinuities in the supply and demand series of the GDP with earlier years, complicating the analysis of historical economic activity by sector and subcomponent. Price and Labor Statistics. The consumer price index (CPI) uses expenditure weights derived from a 2006/07 household expenditure survey. The CPI covers Managua and eight other cities and is published monthly. Expenditures (weights) and prices in rural areas are excluded. The producer price index (PPI) (July 2006=100) covers a sample of small and medium-size establishments, as well as goods for processing establishments in the maquila sector. There is also scope for expanding the coverage of the PPI to the service sector. Labor market statistics are scarce and unemployment figures are available irregularly during the year. | ||
| Government Finance Statistics (GFS). Institutional coverage is not in line with international standards, given that extra-budgetary institutions such as public universities and all 153 municipalities, with the exception of Managua, are not included in the accounts of the consolidated public sector. Recording of transactions is mostly on a cash basis but there are inconsistencies; for example, checks are recorded at the moment of issuance rather than when the check is cashed. The Ministry of Finance and Public Credit (MHCP) compiles fiscal statistics with a monthly frequency, and remits these to the BCN for publication on their website and for inclusion into the BCN’s quarterly reports on public finances. Typically these statistics are published with about a 5-week lag. Separately the MHCP produces its own quarterly report on the execution of the budget. Annual financial statements of public enterprises are produced, but are not audited externally or published. Data on the budgetary central government and social security institute are reported for publication in the GFS Yearbook, although with a delay. The monitoring of fiscal performance from the financing side needs significant improvement, and is complicated by some idiosyncrasies in classifying expenditure items in the budgetary central government. There is also a need to strengthen collaboration between the MHCP and the BCN to derive more accurate and timely estimates of external and domestic financing of the nonfinancial public sector, including with respect to the monitoring of domestic public debt in the nonfinancial public sector other than that of the budgetary central government. | ||
| Monetary and Financial Statistics. Monetary statistics are, in general, consistent with the Monetary and Financial Statistics Manual (MFSM, 2000). Nicaragua publishes detailed daily, weekly, and monthly monetary data on its website, and remits monthly monetary data to STA on a timely basis. In 2015, with technical assistance from the Fund, the coverage of monetary statistics was enhanced to include insurance companies and microfinance institutions. However, sectorization is incomplete and data on the microfinance sector does not include the Caja Rural Nacional (Caruna)—the private cooperative handling until now the Venezuela oil collaboration. Moreover there are major differences between the data remitted to STA and the monetary data published on the BCN’s website, which are not consistent with the MFSM 2000. The authorities are planning to report Financial Soundness Indicators (FSI) to STA on a regular basis (quarterly). However, the coverage of the FSI needs to be extended to include all deposit taking institutions. | ||
| External Sector Statistics. Since September 2013, the BOP statistics follow the concepts and definitions set out in the sixth edition of the Balance of Payments Manual (BPM6), within the limits set by the availability of information sources. Resident institutional units are defined in conformity with BPM6’s concepts of economic territory, residency, and center of economic interest. However, coverage of the private sector is incomplete for the current and financial accounts. The BCN is in the process of revising the transactions and positions of FDI and reinvested earnings from private financial and non-financial companies with the information available. However, these efforts are hampered by a low survey response ratio and the submission of inconsistent data by enterprises engaged in FDI. The central bank also needs to cross check enterprise-by-enterprise trade flows, FDI and external debt to assess any discrepancies between merchandise trade and financial associated flows. These efforts will help to address in part the large errors and omissions in the balance of payments which hinder the assessment of the external sustainability. | ||
| Data Dissemination and Quality. Nicaragua has participated in the General Data Dissemination System (GDDS) since February 2005. Data ROSC was published in December 2005. | ||
| Assessment of Data Adequacy for Surveillance | ||
|---|---|---|
| General. Data provision is broadly adequate for surveillance but there are numerous data shortcomings in national accounts, fiscal, debt, and external sector statistics. | ||
| National Accounts. The Central Bank of Nicaragua (BCN) changed the base year of the annual national accounts (NA) to 2006 and is finishing the implementation of the complete set of integrated economic accounts by institutional sector in accordance with the recommendations of the System of National Accounts 1993 (1993 SNA) and the classifications and most relevant recommendations of the 2008 SNA for which source data are available. In March 2015, while releasing the 2014 NA data, the BCN revised earlier years, specifically the 2010–13 data. These revisions introduced a number of refinements (i.e., update of trade and producer price indexes, use of a new employment matrix, revised agricultural production, and, in particular, addressed discrepancies between NA and the balance of payments (BOP) trade data in the tax-free zones). However, these revisions led to some discontinuities in the supply and demand series of the GDP with earlier years, complicating the analysis of historical economic activity by sector and subcomponent. Price and Labor Statistics. The consumer price index (CPI) uses expenditure weights derived from a 2006/07 household expenditure survey. The CPI covers Managua and eight other cities and is published monthly. Expenditures (weights) and prices in rural areas are excluded. The producer price index (PPI) (July 2006=100) covers a sample of small and medium-size establishments, as well as goods for processing establishments in the maquila sector. There is also scope for expanding the coverage of the PPI to the service sector. Labor market statistics are scarce and unemployment figures are available irregularly during the year. | ||
| Government Finance Statistics (GFS). Institutional coverage is not in line with international standards, given that extra-budgetary institutions such as public universities and all 153 municipalities, with the exception of Managua, are not included in the accounts of the consolidated public sector. Recording of transactions is mostly on a cash basis but there are inconsistencies; for example, checks are recorded at the moment of issuance rather than when the check is cashed. The Ministry of Finance and Public Credit (MHCP) compiles fiscal statistics with a monthly frequency, and remits these to the BCN for publication on their website and for inclusion into the BCN’s quarterly reports on public finances. Typically these statistics are published with about a 5-week lag. Separately the MHCP produces its own quarterly report on the execution of the budget. Annual financial statements of public enterprises are produced, but are not audited externally or published. Data on the budgetary central government and social security institute are reported for publication in the GFS Yearbook, although with a delay. The monitoring of fiscal performance from the financing side needs significant improvement, and is complicated by some idiosyncrasies in classifying expenditure items in the budgetary central government. There is also a need to strengthen collaboration between the MHCP and the BCN to derive more accurate and timely estimates of external and domestic financing of the nonfinancial public sector, including with respect to the monitoring of domestic public debt in the nonfinancial public sector other than that of the budgetary central government. | ||
| Monetary and Financial Statistics. Monetary statistics are, in general, consistent with the Monetary and Financial Statistics Manual (MFSM, 2000). Nicaragua publishes detailed daily, weekly, and monthly monetary data on its website, and remits monthly monetary data to STA on a timely basis. In 2015, with technical assistance from the Fund, the coverage of monetary statistics was enhanced to include insurance companies and microfinance institutions. However, sectorization is incomplete and data on the microfinance sector does not include the Caja Rural Nacional (Caruna)—the private cooperative handling until now the Venezuela oil collaboration. Moreover there are major differences between the data remitted to STA and the monetary data published on the BCN’s website, which are not consistent with the MFSM 2000. The authorities are planning to report Financial Soundness Indicators (FSI) to STA on a regular basis (quarterly). However, the coverage of the FSI needs to be extended to include all deposit taking institutions. | ||
| External Sector Statistics. Since September 2013, the BOP statistics follow the concepts and definitions set out in the sixth edition of the Balance of Payments Manual (BPM6), within the limits set by the availability of information sources. Resident institutional units are defined in conformity with BPM6’s concepts of economic territory, residency, and center of economic interest. However, coverage of the private sector is incomplete for the current and financial accounts. The BCN is in the process of revising the transactions and positions of FDI and reinvested earnings from private financial and non-financial companies with the information available. However, these efforts are hampered by a low survey response ratio and the submission of inconsistent data by enterprises engaged in FDI. The central bank also needs to cross check enterprise-by-enterprise trade flows, FDI and external debt to assess any discrepancies between merchandise trade and financial associated flows. These efforts will help to address in part the large errors and omissions in the balance of payments which hinder the assessment of the external sustainability. | ||
| Data Dissemination and Quality. Nicaragua has participated in the General Data Dissemination System (GDDS) since February 2005. Data ROSC was published in December 2005. | ||
Nicaragua: Table of Common Indicators Required for Surveillance
(As of November 30, 2015)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign banks, domestic banks, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis -à-vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).
Reflects the assessment provided in the data ROSC published on December 8, 2005, and based on the findings of the mission that took place during January 11-26, 2005 for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).
Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Nicaragua: Table of Common Indicators Required for Surveillance
(As of November 30, 2015)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting 7 | Frequency of Publication 7 | Memo Items: | ||
|---|---|---|---|---|---|---|---|
| Data Quality – Methodological soundness8 | Data Quality – Accuracy and reliability9 | ||||||
| Exchange Rates | 10/31/2015 | 11/20/2015 | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 10/31/2015 | 11/20/2015 | D | D | D | ||
| Reserve/Base Money | 08/31/2015 | 09/21/2015 | D | D | D | O, LO, LO, LO | LO, O, LO, LO, LO |
| Broad Money | 08/31/2015 | 11/03/2015 | D | D | D | ||
| Central Bank Balance Sheet | 09/30/2015 | 11/03/2015 | M | M | M | ||
| Consolidated Balance Sheet of the Banking System | 08/31/2015 | 11/03/2015 | M | M | M | ||
| Interest Rates2 | 10/22/2015 | 10/22/2015 | D | D | D | ||
| Consumer Price Index | Oct. 2015 | 11/17/2015 | M | M | M | O, LO, LO, LO | LO, LO, LO, O, LO |
| Revenue, Expenditure, Balance and Com position of Financing3 – General Government4 | Sept. 2015 | 11/17/2015 | M | M | M | LO, LNO, LNO, LO | O, O, O, O, LO |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Government | Sept. 2015 | 11/17/2015 | M | M | M | ||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q3 2015 | 11/20/2015 | Q | Q | Q | ||
| External Current Account Balance | Q2 2015 | 9/22/2015 | Q | Q | Q | LO, LO, LO, LNO | LO, LO, LO, LO, LNO |
| Exports and Im ports of Goods and Services | Q2 2015 | 9/22/2015 | Q | Q | Q | LO, LO, LO, LNO | LO, LO, LO, LO, LNO |
| GDP/GNP | Q2 2015 | 11/17/2015 | Q | Q | Q | O, O, O, LO | LO, O, LO, O, LNO |
| Gross External Debt | Q3 2015 | 10/22/2015 | M | M | M | ||
| International Investment Position6 | Q2 2015 | 9/22/2015 | Q | Q | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign banks, domestic banks, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis -à-vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).
Reflects the assessment provided in the data ROSC published on December 8, 2005, and based on the findings of the mission that took place during January 11-26, 2005 for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).
Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Nicaragua: Table of Common Indicators Required for Surveillance
(As of November 30, 2015)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting 7 | Frequency of Publication 7 | Memo Items: | ||
|---|---|---|---|---|---|---|---|
| Data Quality – Methodological soundness8 | Data Quality – Accuracy and reliability9 | ||||||
| Exchange Rates | 10/31/2015 | 11/20/2015 | D | D | D | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 10/31/2015 | 11/20/2015 | D | D | D | ||
| Reserve/Base Money | 08/31/2015 | 09/21/2015 | D | D | D | O, LO, LO, LO | LO, O, LO, LO, LO |
| Broad Money | 08/31/2015 | 11/03/2015 | D | D | D | ||
| Central Bank Balance Sheet | 09/30/2015 | 11/03/2015 | M | M | M | ||
| Consolidated Balance Sheet of the Banking System | 08/31/2015 | 11/03/2015 | M | M | M | ||
| Interest Rates2 | 10/22/2015 | 10/22/2015 | D | D | D | ||
| Consumer Price Index | Oct. 2015 | 11/17/2015 | M | M | M | O, LO, LO, LO | LO, LO, LO, O, LO |
| Revenue, Expenditure, Balance and Com position of Financing3 – General Government4 | Sept. 2015 | 11/17/2015 | M | M | M | LO, LNO, LNO, LO | O, O, O, O, LO |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Government | Sept. 2015 | 11/17/2015 | M | M | M | ||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q3 2015 | 11/20/2015 | Q | Q | Q | ||
| External Current Account Balance | Q2 2015 | 9/22/2015 | Q | Q | Q | LO, LO, LO, LNO | LO, LO, LO, LO, LNO |
| Exports and Im ports of Goods and Services | Q2 2015 | 9/22/2015 | Q | Q | Q | LO, LO, LO, LNO | LO, LO, LO, LO, LNO |
| GDP/GNP | Q2 2015 | 11/17/2015 | Q | Q | Q | O, O, O, LO | LO, O, LO, O, LNO |
| Gross External Debt | Q3 2015 | 10/22/2015 | M | M | M | ||
| International Investment Position6 | Q2 2015 | 9/22/2015 | Q | Q | Q | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign banks, domestic banks, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis -à-vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).
Reflects the assessment provided in the data ROSC published on December 8, 2005, and based on the findings of the mission that took place during January 11-26, 2005 for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).
Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.