The country received an enormous show of support
from the international community in 2004 when the IMF and World Bank
forgave $4.5 billion of Nicaragua's debt. In April 2006, a free-trade
agreement with the U.S. (CAFTA) went into effect.
Former Sandinista president Daniel Ortega won
the Nov. 2006 presidential election with 38% of the vote and took
office in Jan. 2007.
On March 7, 2008, during a summit meeting in the
Dominican Republic, the leaders of Colombia, Ecuador, Venezuela, and
Nicaragua ended their diplomatic dispute over Colombia's raid into Ecuador
that occurred on March 1, 2008.