According to Guyana-based Kaiteur News the source, who spoke anonymously, said the increase was the result of higher administrative and maintenance costs of the loans.
Since Petrocaribe was created in June 2005, 17 member countries have enjoyed an annual interest rate between 1 per cent and 2 per cent. Beginning in October repayments will be increased to 2 per cent to 4 per cent, the source said.
The increase, however, will not be uniform across all countries and could be lower for poorer nations.
Under the programme, Petrocaribe members can buy oil or refined products from Venezuela at favorable rates and through a long-term financing agreement at the low interest rates.
The source said the planned interest rate increases are permitted under the agreements Venezuela signed with the member nations. He added that no additional increases in rates are contemplated in the near term.
Venezuelan exports an average of 180,000 barrels per day (b/d) to Petrocaribe nations, of which 143,000 b/d is oil and 37,000 b/d is refined product, the source said.
According to the report in the past two years, Petrocaribe countries’ debt for oil purchases has risen to $5.7 billion, with Cuba and Nicaragua accounting for much of that total.
PetroCaribe members are Antigua and Barbuda, Honduras, Bahamas, Jamaica, Belize, Nicaragua, Cuba, Dominican Republic, Dominica, St. Kitts and Nevis, Grenada, St. Vincent and the Grenadines, Guatemala, Saint Lucia, Guyana, Suriname, Haiti and Venezuela.
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