Nicaragua, one of the biggest recipients of Finnish development aid, may soon lose the financial backing of the European donor.
Finland is weighing whether to continue its financial support for Nicaragua, according to Helsingin Sanomat. The government is expected to reach a final decision by next week or early March at the latest, the Helsinki-based newspaper says.
Finnish Minister for International Development Heidi Hautala has hinted the government is likely to end its development cooperation with the Latin American country in line with Finland’s human rights-oriented development policy. Hautala said Finland cannot continue its bilateral assistance to Nicaragua because of the corruption and lack of transparency there, Helsingin Sanomat reports. Finland currently provides about €10 million ($13 million) annually to the country.
Nongovernmental organizations, meanwhile, are expected to continue their programs in Nicaragua.
Aside from pursuing a human rights-based approach to development cooperation, Finland is re-evaluating its budget priorities. Hautala, in a conversation with Devex in December, said Finland was looking at ways to limit the number of its partner countries.
Read more development aid news online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.