The World - News from Aug. 31, 1987

President Daniel Ortega announced new austerity measures to keep Nicaragua’s economy from sinking deeper into debt and blamed the problem on five years of war against U.S.-backed contras . The package includes higher prices for fuel and public transportation, tighter gasoline rationing and the elimination of 5,000 government jobs, mainly through attrition. Ortega said the measures were “made necessary by the wear and tear Nicaragua’s economy has suffered because of the war of aggression.” Prices of gasoline, diesel fuel, propane gas and aviation gas will increase 100%, effective today.