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IMF official examines impact of drop in oil prices on PetroCaribe and Caribbean

Published:Thursday | March 19, 2015 | 1:18 PM

A senior official of the International Monetary Fund (IMF) says the impact of the drop in oil prices globally will affect member countries of the PetroCaribe grouping differently.

Oil prices have dropped to below US$50 a barrel from a high of over US$100 a barrel in June last year.

The IMF's deputy director in the Western Hemisphere Department, Adrienne Cheasty, says if PetroCaribe were to cease, the impact would differ across members countries.

She says governments receiving large flows and without alternative financing sources, like in Nicaragua and Haiti, would be most affected.

And the IMF official adds that governments that have built buffers, like Guyana, or that have alternative financing sources, like the Dominican Republic and Jamaica should be affected less.

PetroCaribe is an oil alliance of many Caribbean states with Venezuela to purchase oil on conditions of preferential payment.