Venezuela will increase the interest rate it charges to finance oil purchases

windeguy

Platinum
Jul 10, 2004
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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
 

Ringo

On Vacation!
Mar 6, 2003
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I read about this a couple of months ago then nothing? So we should see all fuel prices increase by 5% on Friday just to get ahead of the Oct. rate increase and cover the new Jeepetas that everyone will need.

I Just gave dv8 a job tip being a bean counter for Venezuela concerning the beans for oil deal. lol