Debt Relief for Nicaragua: Breaking out of the poverty trap
Nicaragua is Latin America's poorest country, with some of the worst indicators for human welfare. It also has the world's highest level of per capita debt, at around US$1,300 per capita, and one of the highest ratios of debt to GDP. Even though Nicaragua consistently fails to service its debt in full, actual debt repayments are two and a half times spending in health and education combined. This diversion of resources is taking place in a situation characterised by extreme poverty.