In recent months, Nicaragua has generated some good news. On the political front, the former president, Arnoldo Aleman, (1997-2002) was sent to prison for 20 years following charges of money-laundering and fraud. Although under house arrest, Mr Aleman was able to wield legislative influence from his home, complicating the efforts of the current president Enrique Bolanos to govern the country. On the economic front, in January Nicaragua was relieved of $5.1bn of debt under the Highly Indebted Poor Country Initiative (HIPC), an IMF-administered programme. The pardon will lower the debt burden to a more manageable $1.4bn, thereby slashing interest payments. In 2003 private analysts estimated that 85 cents of every cordoba, the local currency, paid in taxes to the government was used to pay off the interest and principal of internal and external public debt.
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