Denmark praises Nicaraguan fight against corruption

COPENHAGEN, Aug 30 (AFP) - Danish Prime Minister Anders Fogh  Rasmussen said Monday he was impressed by the Nicaraguan  government's efforts to fight corruption, as he and President  Enrique Bolanos inked a deal promising Managua 160 million dollars  in aid over the next five years.

"We do that because we feel confident that President Bolanos and  his government will continue the progress in Nicaragua. We are  strongly impressed by the progress you have already achieved with  regard to improvement of the human rights situation and the combat  of corruption," Rasmussen told reporters following talks between the  two leaders.

"We feel confident that you will ensure still better  government," he added.

The Danish prime minister visited Nicaragua last year, when he  also met with Bolanos.

Rasmussen told the Nicaraguan president on Monday that Denmark  could send more aid to his country if it continued to move towards  democracy and good governance.

"If Nicaragua continues the reform process, I would not exclude  the possibility that we would even increase the level of development  assistance to Nicaragua. President Bolanos and his government have  made a lot of progress," he said.

Bolanos expressed gratitude but said Nicaragua still had  problems, blaming the Sandinistas, today the country's main  political opposition group, for "ruining" the country during their  1979-1990 rule.

"We have a country which was ruined for 11 years. The country  was set back 50 years. To catch up with those 50 years takes some  doing. We have made a strong fight against corruption. We try to  follow the footsteps of Denmark which we know is the number one in  transparency by world standards," he said.

Nicaragua is one of the 13 countries which Denmark prioritizes  for development aid.

The Scandinavian country's parliament recently approved a  revised aid policy for Nicaragua, which amounts to 180 million  kroner (29 million dollars, 24 million euros) per year during the  five-year period of 2004-2009.

In addition to that, Nicaragua also receives Danish aid from a  private sector program as well as a regional aid program aimed at  improving democracy and human rights in Central America.

Nicaragua is the poorest country in Latin America after Haiti,  with more than 40 percent of the population living in poverty and 17  percent living in "extreme poverty", according to the Danish foreign  ministry.

Bolanos was to attend a dinner in his honour hosted by the prime  minister on Monday evening. He was also scheduled to meet with  representatives of parliament and the Danish business sector during  his stay.

The Nicaraguan president is due to leave Denmark on Wednesday.