Guyana’s Debt Compensation Arrangement Written Off Under Petro Caribe Deal With Venezuela

GEORGETOWN, Guyana, CMC – Guyana’s fourth debt compensation arrangement under Petro Caribe, has been written off by Venezuela for rice supplied to the neigbouring country.

Finance Minister Dr. Ashni Singh who made announcement, said so far, the deal has worked well for the country.

“I would say Petro Caribe has worked well for Guyana, we have been extremely prudent in how we manage that mechanism, as you know in Guyana the project has not only resulted in making available financing through our oil purchases, from Venezuela but very importantly has provided a market for rice produced in Guyana.”

When asked, whether the administration is concerned about the Perto Caribe deal given the political situation in Venezuela, Singh told reporters at a recent press conference that the government remains hopeful that Venezuela recognises the significance of the deal and its benefits for both nations.

While acknowledging Venezuela as an important partner under the Petro Caribe deal, the Finance Minister said the administration continues to seek out other viable markets for its rice.

Petro Caribe is an oil alliance of many Caribbean states with Venezuela to purchase oil on conditions of preferential payment. The alliance was launched on June 29, 2005 in Puerto La Cruz, Venezuela.