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As woes grow, Nicaragua may cut Caracas ties

Tuesday, May 12, 2015


About half of Nicaragua's electricity is fueled by oil from Venezuela, which for many years has been highly subsidized. In return, Venezuela gained political influence.

But as oil prices plunged globally last year, the negligible interest rates that Venezuela charged Nicaragua went up. Even as its oil-importing neighbors have seen big savings, Nicaragua's financial woes have actually deepened. And now, many are pressing the country to ease its dependence on its oil-rich friend.



Source: Christian Science Monitor