Nicaragua: Lawmakers Approve Aid Package From the IMF

Nicaragua's Parliament passed a bailout from the International Monetary Fund (IMF) for a total of US$183.5 million in order to support reconstruction efforts following the passing of hurricanes Eta and Iota.

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The IMF loan was approved through the Fast Track Financing (IFR) and the Fast Track Credit Facility(RCF) mechanisms taking into account the country's low public debt and the current humanitarian emergency situation. 

President Daniel Ortega has appealed to several international financial organizations in order to raise funds for the recovery of the country where 5,498 people are still evacuated. 

"More resources will flow from the international community to... rebuild our country," Parliament's Economic Commission chairman Walmaro Gutierrez said.

After being hit by the hurricanes Eta and Iota in a 13-day interval, Nicaragua suffered losses of some US$742 million.

The Central American Bank for Economic Integration (CABEI) also approved two loans to Nicaragua for US$443 million. The loans will support the Multi sectorial Program for Economic Reactivation and Social Protection (NIC-Solidaria) and the National Program for Sustainable Electrification and Renewable Energy.

Exposing a preliminary damage report, Finance Minister Ivan Acosta noted that approximately 3 million people were exposed to the two hurricanes, and damages were reported in 56 municipalities.

Some 5,800 homes are totally destroyed and 38,000 are partially damaged, which implies a loss of USD126 million.

Also, US$41 million are quantified in damages to school infrastructure, while the health sector reports US$12 million in losses, including damages to a hospital in Puerto Cabezas where both hurricanes made landfall.