Tuesday, September 20, 2005

Nicaragua's Government in the Emergency Room

Daniel Ortega, leader of left wing opposition Sandinista party announced a deal to buy Venezuelan oil at a 40% discount.

You read well, the Nicaraguan opposition party signed a deal with a foreign government and a badly needed one.

This defiant move has put American friendly President Bolaño in an unenviable position.

National electricity company Fenosa is rationing power since the Supreme Court banned higher rates. Without extra revenue Fenosa can’t afford fuel to generate power. The Supreme Court is controlled by an opposition coalition.

There are two ways to solve the energy crisis. To increase rates or to take Chavez’s oil.

Since President Bolaño is not friends with Chavez he can only ask congress to approve higher bills. That will dent his popularity and increase Ortega’s.

Daniel Ortega just gave a mortal blow to the government, with a little help from his Venezuelan friend.


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