Economy July 13, 2018 | 1:53 pm

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Defunct Petrocaribe pact reached 22% of bilateral financing

The late Hugo Chavez created Petrocaribe. Former president Leonel Fernandez signs refinery deal. File.

Santo Domingo.- The Petrocaribe oil deal came to an end as an instrument of support Dominican Republic’s budget, which climbed supply peaks as high as 22% of bilateral financing.

In the last three proposals for the Budget, including 2018, the mention of the financing formula has gone from numerical to literary.

Though short on specific figures, paragraphs explain that that’s the reasons why no tax revenues were estimated based on that pact.

In the 2014 Budget, when the Government defined the financing policy that would sustain it, it allocated RD$26.6 billion that would be contributed by Petrocaribe. This figure is 17% of the estimated external financing for that period.

2014 was the next-to-last year in which the pact, promoted by Venezuela’s Government, served as the main source of bilateral financing for the Dominican Republic. It contributed around US$600.0 million, or 1% of GDP of that time.

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