Page "Economy of Nicaragua" Paragraph 8

Nicaragua faces a number of challenges in stimulating rapid economic growth.

An International Monetary Fund ( IMF ) program is currently being followed, with the aim of attracting investment, creating jobs, and reducing poverty by opening the economy to foreign trade.

This process was boosted in late 2000 when Nicaragua reached the decision point under the Heavily Indebted Poor Countries ( HIPC ) debt relief initiative.

However, HIPC benefits were delayed because Nicaragua subsequently fell " off track " from its IMF program.

The country also has been grappling with a string of bank failures that began in August 2000.

Moreover, Nicaragua continues to lose international reserves due to its growing fiscal deficits.