“Petro Caribe” funds being used for various “things” in social sector

Jun 09, 2014 News

– President Ramotar

President Donald Ramotar has said that the funds which are being accumulated from the “Petro Caribe” deal are being used for a variety of issues. According to Ramotar, government currently uses the funds in the social sectors.
He said that the funds have been used to construct a building in Berbice which is used to house people who are less fortunate.
Ramotar said that the funds are also being used to purchase fuel. The President stated also that he could not give details what else it is being used for, but the information could be made available.

President Donald Ramotar

Under former President Hugo Chavez, a lucrative oil-for-rice deal called “Perto Caribe” was signed between Venezuela and 18 other countries including Guyana to delay payments for fuel supplied by Venezuela for a number of years.
Venezuela exports an average of 180,000 barrels of oil per day to Latin American and Caricom countries under the Petro Caribe Deal.
Since Petro Caribe was created in June 2005, 17 CARICOM and Latin American countries have enjoyed an annual interest rate between one per cent and two per cent on fuel credited from Venezuela. It was reported last year that Petro Caribe countries’ debt for oil purchases had risen to US$5.7B.
Finance Minister, Dr. Ashni Singh, last year said that towards the end of 2012, Guyana signed its first debt compensation agreement with Venezuela, which reduced the Petrocaribe debt owed to that country by US$100.8 million, equivalent to the value of rice and paddy shipped from December 2009 to July 2011.
At the end of 2012, Guyana reportedly owed Venezuela US$364M.
Rice is exported to Venezuela with the oil payments used to offset the shipments. However, the oil arrangements may be under threat now and CARICOM states participating would especially be concerned.