Lenders fell Nicaraguan debt by three-quarters

The International Monetary Fund and the World Bank have announced that they are to pardon about three-quarters of Nicaragua's foreign debt, or four-and-a-half billion dollars.

In a statement, the organisations said the move would help reconstruction efforts in Nicaragua following Hurricane Mitch two years ago.

In return, they've called on the government to use the savings to invest in health and education, and carry out further economic reforms.

It's the largest ever debt relief announced under the Heavily Indebted Poor Countries initiative, introduced by international lenders in 1996.

From the newsroom of the BBC World Service