Strikes Over… For Now

May 2008 | Ratings Update

The Nicaraguan government has reached an agreement with the country's transport sector which should bring an end to national strikes over rising fuel prices. The authorities will grant transport companies a discount of USc30 per gallon of diesel for buses, taxis and trucks that operate within Nicaragua. Furthermore, the government has promised to offer preferential prices for transport-related intermediate goods, most notably for lubricating oils and tyres. While such measures could offer temporary relief for the sector, the spike in spending could threaten to deepen an-already sizeable (3.8% of GDP) hole in the fiscal accounts.

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