SANTO DOMINGO.- Dominican Republic will have to pay Venezuela US$4.04 million in interests and capital at yearend, and US$18.7 million next year for fuels bought through president Hugo Chavez’ Petrocaribe oil deal, implemented to help the region’s poorer countries.

According to data from the Hacienda Ministry, whenever the Dominican Petroleum Refinery gets Venezuela’s crude within the Petrocaribe deal, 60 percent of that fuel is paid in cash and 40 becomes Government revenue.

The energy cooperation agreement allows Dominican Republic to buy up to 40 percent of Venezuela’s oil on credit, in a quota of up to 50,000 barrels daily.

Faced with a new round of oil price jumps, Venezuela will host a Petrocaribe summit July 7, which 16 heads of State of member nations will attend, where they’ll analyze the situation and the measures to take to guarantee energy security.

Last month Hacienda minister Vicente Bengoa said US$720 million have been earned with the Petrocaribe deal, which have been spent on subsidies through the State-owned power companies grouped in the CDEEE.

The official said in 2009 government will pay the US$18.7 million with farm products, medicines or with services such as tourism, because the agreement is open to many possibilities.

For Venezuela ambassador Francisco Belisario Landis, Petrocaribe has become a lifesaver for the Caribbean countries, strapped by the rises in the price of a barrel of crude world-wide.

The short term payment of 60 percent of the bill was extended from 30 to 90 days.

Venezuela will accept that part of the bill’s differentiated payment could be done with goods and services.

SOURCE diariolibre.com.do