Venezuela says No to PetroCaribe Hike

The Venezuelan government has assured PetroCaribe beneficiaries that there will be no increase in interest rates to be paid on PetroCaribe loans.

The Venezuelan Government said no decision had been made to increase the interest rates.

Last week, reports emerged that the Venezuela would be increasing the interest rate charged to finance oil purchases by Central American and Caribbean countries under the PetroCaribe deal.

The energy trading Web site, Platts, had quoted an unnamed Venezuelan source as saying that the interest rates on loans under PetroCaribe could be doubled as of October.

Under the PetroCaribe agreement, members can buy oil or refined products from Venezuela at favourable rates and through a long term financing agreement at low interest rates.

PetroCaribe members are Antigua and Barbuda, Honduras, Bahamas, Jamaica, Belize, Nicaragua, Cuba, Dominican Republic, Dominica, St Kitts and Nevis