This is the conclusion of an International Monetary Fund (IMF) mission visited Managua. Mr. Luis Cubeddu, mission chief for Nicaragua, made the following statement:

Discussions focused in evaluating the economic program agreed in the context of the ECF. Preliminary data through December 2009 indicates that all quantitative targets at end-2009 were met with some margins, in part reflecting the prudent implementation of fiscal and monetary policies. The mission discussed the economic outlook for 2010, as well as the policies needed to maintain macroeconomic stability, as well as to ensure the sustainability of public finances and sound development of the financial system. The mission also evaluated progress in implementing longer-term reforms. In this regard, the mission highlighted the need to make progress towards: (i) evaluating the options to improve the financial situation of the Social Security Institute; (ii) consolidating the reforms in the electricity sector; (iii) improving public financial management; and (iv) strengthening the policy instruments of the Central Bank.

“The discussions between Fund staff and Nicaraguan authorities will continue in the coming weeks, with the objective of reaching an understanding about a set of policies that could be presented for the consideration of IMF management and its Executive Board.”