Published On: Thu, Jan 11th, 2018

No more oil from Venezuela for Haiti because of Trump

Haiti Port au PrincePORT AU PRINCE - Jude Alix Patrick Salomon, the minister of the economy and finance, has revealed that the financial sanctions imposed by the Trump administration against Venezuela, including limiting banking transactions, have resulted in Venezuela no longer sending oil to Haiti since October 2017, because the Bank of the Republic of Haiti (BRH) is no longer able to make payments in foreign currency.

As a result, the PetroCaribe fund is no longer supplied and Haiti is deprived of this important source of low-rate financing, HaitiLibre reported.

Previously, and according to the price of a barrel on the international market, the Haitian government transferred from 40% to 75% of the amounts collected to the PDVSA Petroleo SA, the difference to be paid by Haiti over 25 years at a rate of annual interest of 1% after a grace period of two years.

The percentage retained by Haiti depends on the price per barrel — the higher the price per barrel, the more retained by Haiti and vice versa.

This situation now makes things more difficult in Haiti, which must henceforth obtain fuel in the international market and is more exposed to fluctuations in the spot market, while waiting to find a viable alternative, such as long-term fuel orders, which will require guarantees from Haiti.

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