Shortly after, Sandinistas gave in having reached an agreement with the new government, though many of them left unfulfilled[3] The next year, with continual decline in the economy, Nicaragua takes out a loan of a little over 17 million in SDR on September 23, 1991, and pays this amount off between 1994 and 1996.
This bread controversy as the fund pleaded for the money to be used to increase GDP of the country rather than its outstanding debts.
[5] In 1998, Nicaragua petitions for a loan of 100 million in SDR across 3 years with the goal of eliminating poverty while simultaneously creating financial institutions to further stimulate growth for economic stability.
The only major roadblock of the efforts was the hyper inflation of food products that rose as high as 18.5 percent in December 1998.
[9] In 2002, Nicaragua experienced a financial banking crisis as a result of investor instability in the wake of an election, leading to a massive deceleration of growth to 1 percent.
Furthermore, the Central Bank of Nicaragua (BCN) had to take the majority of the damage and up spending dramatically, thus raising debt.