In 1989 Denmark was part of a group of countries that combined to give $20 million to Nicaragua in response to domestic concessions which led to the 1990 general election which ousted the Sandinista National Liberation Front from power.

[3] The Danish development programme assists Nicaragua within four priority sectors: transportation, agriculture, environment and education.

The announcement was made by Danish development cooperation minister Ulla Tørnæs during a visit to the Latin American country where she met president Daniel Ortega.

[3] In 2010 Denmark went on to announce their intention to stop providing all development funds to Nicargaua, though they did not indicate a firm date for this to happen.

This was presented as part of Denmark's overall strategy to stop giving aid to Latin American countries so it can better focus its development budget on Africa.