Costa Rica asks to join Chávez oil group

[struggle4progress]

President Oscar Arias' administration yesterday authorized the Foreign Ministry to formally request Costa Rica's incorporation into the Venezuela-led Petrocaribe initiative as soon as possible.

“We have to see if it will be necessary to wait until the next presidents' meeting in December, or if instead we can benefit from this help as soon as possible, even if we are not full members of Petrocaribe,” Arias said in a press release.

Once accepted, Costa Rica will become the group's 18th member. Despite sour relations between the United States and Venezuela, three members of the Central American Free-Trade Agreement with the United States (CAFTA) – the Dominican Republic, Honduras and Nicaragua – are members of the grouping.

Costa Rica imports 95 percent of its crude oil from Venezuela, but must pay it in full within seven days of receiving it. As a Petrocaribe member, if the price of oil is more than $100 per barrel, Costa Rican will be able to finance 60 percent of the cost of their oil over 25 years, paying 1 percent interest a year and will have 90 days to pay the remainder. If the price reaches $150 per barrel, it will be able to finance 70 percent of the cost of their oil over 25 years, paying 1 percent interest a year with a two-year grace period ...

http://www.ticotimes.net/dailyarchive/2008_07/0717082.htm

[Judi Lynn]

1. It's an offer they're lucky to get! Good for them. n/t