Fuel Subsidies Announced

June 2008 | Ratings Update

Nicaraguan President Daniel Ortega finally succumbed to popular pressure in May and granted fuel subsidies for the transport sector, thereby ending strikes that had crippled the economy earlier in the month. The government has agreed to provide a subsidy of US$1.30 on every gallon of diesel sold to taxis and buses. The subsidies are unlikely to hurt the government's finances too severely given that Nicaragua receives special funding from Venezuela as a member of the Alternativa Bolivariana para las Américas (ALBA). That said, there is a distinct possibility of further strike action ahead given that the subsidies do not include

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