Transantiago Loan Rejected

December 2007 | Risk Summary

The Chilean senate has voted against the government's request of a US$90m loan to rescue the capital's Transantiago transport system. Transantiago, which has been mismanaged since its launch in February 2007, is thought to be losing around US$35m a month, and has contributed to the fall in President Michelle Bachelet's approval ratings. If the scheme continues to fail, there are likely to be severe political implications for the ruling Concertación alliance. Furthermore, the loss for Bachelet in the senate indicates that there was now a dominant rightwing faction in congress.

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