Four CARICOM countries cut back reliance on PetroCaribe

By Michelle Nurse Last updated Nov 27, 2014

At least four Caribbean Community (CARICOM) member countries are taking steps to reduce their reliance on Venezuela’s PetroCaribe oil subsidy as crude prices plunge, according to the International Monetary Fund (IMF).

The four countries are Guyana, Haiti, Belize and Jamaica and it’s a move other countries should follow, said David Voght, managing director of energy consultancy IPD Latin America.

The future of the $8 billion PetroCaribe subsidy, which also allows countries to finance part of their oil purchases at 1 percent for 25 years, is looking less secure as Venezuela faces inflation that had risen to 63 percent and the world’s widest budget deficit.