President Leonel Fernandez’s main objective as he heads to the PetroCaribe summit in Cienfuegos, Cuba is to ratify the PetroCaribe agreement with Venezuela. He is traveling to Cuba today, to attend the 15-nation PetroCaribe summit.
The ratification of the agreement would prevent what Fernandez called “the other storm,” referring to the skyrocketing prices of petroleum on the international market. Fernandez added that PetroCaribe’s offer to the DR was generous, and said that if the price of a barrel of oil reached US$100 the DR would pay 50% as part of the PetroCaribe agreement and the remaining 50% would be deferred for 25 years. Fernandez also explained that the agreement would allow the DR to receive a total of 50,000 barrels of crude per day. Quoted in Hoy, Fernandez said, “The good thing about PetroCaribe is that the oil is being sold at market prices, although it allows the Dominican market to finance it with a two-year grace period and very low interest rates, as if it was on consignment, and with the option of paying over a period of 25 years.”