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Economy / El Salvador

Wary Of Caracas

January 2008 | Ratings Update

President Tony Saca was forced in December to repudiate rumours that his government was planning to sever ties with Venezuela. Security Minister René Figueroa mentioned the possibility that Venezuela was engaged in espionage in El Salvador, and another lawmaker suggested breaking diplomatic relations. The issue, according to Saca, is over allegations that Venezuela is funding the left-wing opposition party FMLN. Although Saca effectively defused the diplomatic dispute, we would not be surprised to see these issues become more prevalent as we head into the 2009 presidential and legislative elections, in which it appears from early polls that the FMLN will

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