Venezuela to Sign Oil Deal with Nicaragua

President Hugo Chavez announced in his weekly radio and TV live address "Alo Presidente" an agreement with Nicaragua to ease the massive power cuts starting next week due to fuel shortage.

Chavez will sign the agreement Tuesday in Caracas with the Mayor of Managua Dionisio Marenco, and issued invitation to ex President Daniel Ortega (1985-1990) among other Sandinista officials.

Venezuela"s state-run PDVSA company will supply fuel to the Asociacion de Municipios de Nicaragua (Amunic), made up of Nicaraguan mayors from the Sandinista National Liberation Front.

Nicaragua gets a 90-day credit facility to pay 60 percent the cost of oil purchased to Venezuela and 25-year deadline to pay for the other 40 percent.

Guatemala´s President Oscar Berger said he is arranging a meeting with Chavez for similar ends adding that all of Central America hopes to turn to Venezuela to escape the world market rocketing fuel prices.