Ministry Denies Petrocaribe Repayments Delayed

KINGSTON — The Ministry of Finance and Planning has refuted the claim of deferment of PetroCaribe interest payments, which appeared in the Financial Gleaner on Friday, December 2, under the headline "Gov't may seek Deferring Payment to Venezuela".

In a release Monday (December 5), the Ministry said that the Government of Jamaica has not sought, and is not seeking, to defer any form of debt payment to Venezuela.

“Jamaica remains current on all external debt payments,” the release said.

“In December 2011, the government paid the current amounts of US$2.6 million, due under the PetroCaribe Agreement, bringing the total amount paid for the calendar year to US$42.2 million,” the ministry explained.

The Financial Gleaner had claimed that “the Jamaican Government could seek a deferment of interest payments to Venezuela, totalling US$44 million, for the current financial year, under the PetroCaribe Development Fund”.

The report also related the claim to Prime Minister Andrew Holness’ trip to Venezuela for the  PetroCaribe summit, following the Latin American and Caribbean summit on integration and development.

PetroCaribe is an oil alliance with Venezuela, which allows Caribbean nations, including Jamaica, to purchase up to 185,000 barrels of Venezuelan oil per day at market value, and pay the remainder through a 25 year financing agreement.

By Balford Henry, JIS Reporter & Editor