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Jamaica prepared for possible PetroCaribe deal fallout - Rowe

Published:Sunday | October 26, 2014 | 11:01 AM
Financial Secretary Devon Rowe - File

Financial Secretary Devon Rowe says Jamaica is already putting measures in place to cushion any fallout from the Petro Caribe agreement with Venezuela.



The assurance comes amid a warning from professor of Economics and International Business at New York University, Nouriel Roubini, that falling oil prices on the global market could soon bring an end to the agreement.



The PetroCaribe accord was signed in 2005 between Venezuela and several Caribbean countries, allowing regional governments to purchase oil from Caracas at concessionary rates.



Speaking at an International Monetary Fund (IMF) forum in Montego Bay on Friday, Roubini suggested that it was only a matter of time before Venezuela would no longer be able to provide subsidise exports to the Caribbean.



As a result, he said this was something countries in the region must begin to prepare for.



But in responding to the concerns, Rowe indicated that he expected the arrangement to continue, but said Jamaica had already taken steps to broaden its energy base and build reserves in order to compensate for potential shocks.



In addition, he said Jamaica has arranged a deal which allows the government to repay Venezuela in kind and not cash.



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