Nicaragua will strengthen fiscal management, improve tax collection and increase the quality, transparency and efficiency of spending on poverty with the third and final loan of U.S. $ 42.5 million to support policy reforms approved by the Inter-American Development Bank (BID).
Nicaragua's government hopes that this project will result in improvements in the macroeconomic environment, contributing to a positive growth rate and lower poverty rates. With this third loan, the IDB has provided a total of $ 103 million since December 2008 in budget support to accompany the reform of the tax system in Nicaragua.
Finally, the project seeks to improve coverage, quality and targeting of spending to reduce poverty and ensure that aid is focusing on low-income population.
The World Bank approved the loan to support the Government's fiscal program.
The World Bank Board approved a loan for U.S. $ 74.7 million to support the government program designed to address the difficult fiscal situation in the short term and to achieve balanced fiscal accounts, which will bear fruit in the medium and long term, thus, promoting development in the country.