Venezuelan Oil

This report in the Miami Herald analyzes the mixed blessing provided by Hugo Chávez’s generous oil policy towards Caribbean countries, such as Jamaica, Dominican Republic, and Haiti. Though provided on soft terms (1% interest rate), the debts are accumulating. Moreover, cheap oil allowed the receiving countries to postpone and avoid critical and unpopular reforms. Another variable is that the new government in Venezuela may want to reduce or even eliminate the generous program in order to address its own economic need. In any case, serious adjustments are ahead. It’s estimated that Jamaica could incur a cost of $600 million if it loses cheap Venezuelan oil.

http://www.miamiherald.com/2013/04/04/v-fullstory/3323947/venezuelan-oil-program-uncertainty.html