If Hugo Chavez Dies Cuba and the Caribbean Economies could Collapse
Venezuelan President Hugo Chavez’s battle with cancer threatens $7 billion of subsidized oil exports that help prop up Cuba’s economy and contain inflation in Caribbean nations. He was hospitalized in Havana after a fourth operation to try and remove cancerous cells from his body.
Chavez created Petrocaribe in 2005. The alliance’s members can buy oil from state-owned Petroleos de Venezuela, or PDVSA, at market prices, paying as little as 5 percent upfront and the remainder over 25 years at 1 percent interest rate.
If Chavez’s successor ends the funding scheme, Caribbean economies still struggling to bolster tourism after the 2008 financial crisis would face further budgetary strains.
What are the chances that Hugo Chavez's successor will end the funding? Is it highly likely?
Thank you for registering with Oilprice.com
You have successfully joined the forum. You can now create topics and converse with other members.