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Weekly Report - 13 May 2010 (WR-10-19)

NICARAGUA : 'Alba' bonuses stall talks with IMF


The IMF last week announced it was suspending talks with the Nicaraguan government regarding the fourth revision of the country's economic programme following President Daniel Ortega's announcement of a monthly US$25 “Christian, socialist, solidarity" bonus for some 120,000 public sector workers. The bonuses are contentious because they will be financed not by the State but rather by the nebulous cooperation from Venezuela which remains outside the budget. While the IMF cited “inflationary" concerns as grounds for its suspension of talks, the opposition considers Ortega's move further evidence of his “autocratic" tendencies.

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