Presidents Hugo Chavez and Leonel Fernandez signed the reinstatement of the suspended Accord of Caracas at the Presidential Palace on Saturday. In the 6 November agreement, Venezuela commits itself to supply 50,000 barrels of oil or equivalent forms of fuel per day to the Dominican Republic. In a joint press conference held after the signing of the agreement, complements the San Jose Oil Pact that already establishes credits based on 20% of oil sales, the statesmen announced that with world market prices at more than US$30 the barrel, 25% of the bill will be financed at 2% annual interest for 15-year periods, with a grace period of one year to pay the capital. Furthermore, the DR may pay the credits in goods and services. The one-year agreement is automatically renewable.<\/p>\n
In addition, the Venezuelan government also committed to collaborate in the exploration for oil in the DR and train Dominican technicians.<\/p>\n
President Leonel Fernandez described the agreement as “an expression of generosity and solidarity not very common in today’s world, in which market conditions prevail.”<\/p>\n
The DR presently sources fuel from Venezuela at US$40, at a time world market prices are at around US$55 the barrel. The Listin Diario newspaper points out that at the present price level, the agreement could represent savings of US$200 million on the trade balance.<\/p>\n
The DR consumes 140,000 barrels of oil a day, of which 110,000 are imported from Venezuela. These imports were suspended in September 2003 after a clash between former President Hipolito Mejia and President Chavez. The Venezuelan leader complained that former Venezuelan President Carlos Andres Perez was conspiring against him from Dominican territory.<\/p>\n
Following the signing of the agreement, Chavez and Fernandez inaugurated the Plaza Simon Bolivar at Maximo Gomez and Bolivar avenues. As a donation from the government of Venezuela, the plaza was completed in 2002, but was not inaugurated given the conflict between then-President Mejia and President Chavez.<\/p>\n","protected":false},"excerpt":{"rendered":"
Presidents Hugo Chavez and Leonel Fernandez signed the reinstatement of the suspended Accord of Caracas at the Presidential Palace on Saturday. In the 6 November agreement, Venezuela commits itself to supply 50,000 barrels of oil or equivalent forms of fuel per day to the Dominican Republic. In a joint press conference held after the signing … <\/p>\n