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Petrocaribe interest rate to increase by October

Caracas.– Venezuela will increase the interest rate it charges to finance oil purchases by Central American and Caribbean states participating in the Petrocaribe oil trading agreement, according to unconfirmed reports circulating Friday.

The reports cited a source who claimed the increase was the result “of higher administrative and maintenance costs of the loans.” Petrocaribe members purchase oil or refined products from Venezuela at favorable rates and through a long-term financing agreement at the low interest rates.

The iinitiativeof the late Hugo Chavez, former President of Venezuela, came into effect in June 2005. Through the arrangement, 17 countries, including the Dominican Republic, enjoy an annual interest rate of  between one an two per cent.

Now there is speculation the interest rate will rise to 2-4 percent by October, with poorer states benefiting from a lower rate.

Source: DT

Category: DR News |

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Last updated December 5, 2016 at 9:13 AM
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