./.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/BFA/W/32
18 March 1999
(99-1098)
Committee on Budget, Finance and Administration Original:  Spanish
COMMUNICATION FROM NICARAGUA
The following communication has been received from the Minister of Foreign Affairs of
Nicaragua.
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As you are aware, on 4 November 1998 the United Nations General Assembly unanimously
adopted resolution RES/53/1(C) on the strengthening of the coordination of humanitarian and disaster
relief assistance of the United Nations, including special economic assistance to individual countries
or regions.
In that resolution, the General Assembly expressed its deep regret at the loss of human lives
and material losses and the scores of victims in the wake of hurricane Mitch in Central America, and
appealed to all Member States and all organs and bodies of the United Nations system, as well as
international financial institutions and development agencies, to help to ensure the rehabilitation and
recovery of the economy and the affected population in the short, medium and long term.
In the same context, on 1 December 1998 the General Assembly adopted resolution
RES/53/1(D) requesting the international community to continue to provide support and cooperation
to Nicaragua, taking into the account the exceptional circumstances faced by the country, and aware
that, despite the reduction and renegotiation of the heavy burden of the foreign debt achieved with the
collaboration of the international community, Nicaragua continues to be a heavily indebted country, a
fact that negatively affects its ability to ensure real sustainable growth.  It also stresses the need for the
international community to provide Nicaragua with the necessary financial resources consistently and
under favourable conditions, with a view to the effective promotion of its economic growth and
development, the conservation of its natural resources and the strengthening of its democracy.
As you know, the damage caused by hurricane Mitch in our country amounts to
US$1,504 million, according to a preliminary report of the Central Bank of Nicaragua dated16 November 1998.  Added to the needs of the 870,000 victims mentioned in the report, this outstrips
our response capacity for the total reconstruction and rehabilitation of Nicaragua.  The international
community is therefore collaborating with Nicaragua to  meet the most pressing needs and assist in the
transformation of our economy.
In response to this appeal from the United Nations General Assembly, the Organization of
Ibero-American States decided at its Assembly  held in Santiago, Chile on 27-28 November 1998, to
cancel the total debt of the countries affected by hurricane Mitch and also granted a four-year waiver
of their contributions.WT/BFA/W/32
Page 2
In view of the foregoing, I am quite convinced that it is only with the support and solidarity of
Member States and all international bodies and organizations, as well as the financial institutions and
development agencies, that we will be able to set about the economic and social transformation of
Nicaragua.
As you will understand, the critical situation in which we are now placed makes it difficult for
our country to devote resources to other activities that are not included in the national reconstruction
and transformation programme.  Accordingly, taking into account the solidarity displayed by the
organization you head and the invaluable support it has given our country during this emergency, I am
writing to appeal once again to your goodwill towards our country, and through you to request the
competent bodies to cancel all Nicaragua's debt towards your organization.
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