The government wanted convenient terms in time frames, repayment schedules and interest rates, but no agreement was reached.
Guatemalan Vice President Roxana Baldetti, reported that the country has ruled out joining the initiative "which allows countries in the zone to buy oil from Venezuela on favorable terms," noted an article in Laprensagrafica.com.
President Mauricio Funes admitted the possibility that El Salvador will enter into an oil agreement with Venezuela and Caribbean nations in order to purchase fuel under more favourable payment terms.
At the same time as making a statement on these issues, Funes said that in principle, he is not think about joining the Alba, an international association of a political nature whose true head is the President Hugo Chavez.
The conditions in Petrocaribe will never be the same: the new government of Venezuela will change preferential credit terms for the purchase of oil.
This was explained by the Vice President of GuatemalaRoxana Baldetti, who has already met with representatives of Petrocaribe. "Back then, the conditions were the sale of up to 20 thousand barrels per day, of which 40% of the value would be paid in 90 days and the remainder within 25 years, with a rate of 1%. Same as offered to Honduras, reported Laprensa.hn.
The Chamber of Agriculture of Guatemala believes that integration to Petrocaribe will not bring advantages and will bring disadvantages.
Jose Molina, president of the Chamber of Agriculture, said that since 2008, when Guatemala joined the program, they have been expressing their total opposition because the project represents an increase in public debt.
The Guatemalan government's intention to join Petrocaribe is generating a heated argument that reveals the political background of the subject, beyond its apparent financial advantages.
Humberto Preti, in his column in Prensalibre.com, reports that "What is being done with Petrocaribe is to set up a state run or semi-state run company which does "the business" and receives the oil with 50% long-term financing with interest rates of 1% per year and with a grace period of two years before starting repayments. The oil is received at current international prices, so there is no advantage in price, but in funding. The oil is to be delivered to a refinery that can process Venezuelan heavy type oil, which is highly sulfurous-, which are those that are outside of Venezuela, in Trinidad and Curacao. Venezuela does the same and imports its own oil derivatives. The only refinery that they had burned down. This refinement has normal costs, so therefore the price of derivatives remains the same and Guatemalans would have no economic advantage. "
They are demanding from the government more transparency in the management of fuel purchases and more information on how the market will be organized with the participation of the Venezuelan entity.
The Chamber of Commerce and Industry of El Salvador has expressed concern about the interference that Petrocaribe and the Venezuelan government could have on El Salvador and has asked the government for greater transparency about how fuelimports will be handled once the agreement enters into force.
Gasoline distributors are concerned about Petrocaribe's recommendation that the Salvadoran government be the sole manager of oil imports.
An urgent appeal to the Government for it to call together companies from the sector and clarify the implications of El Salvador's entry into Petrocaribe, has been the reaction of the distributors of domestic fuels, in light of statements by representatives of Alba Petróleos suggesting that the government should establish an entity to manage the purchase and import of hydrocarbon derivatives purchases.
Under the framework of the Petrocaribe initiative, Honduran producers plan to sell palm oil, milk powder, UHT milk and chicken meat.
According to the president of the National Federation of Farmers and Ranchers (Fenagh), Leopoldo Durán, the Venezuelan government has shown interest in Honduras for the provision of palm oil, milk powder, UHT milk and chicken meat.
In a few weeks there will be an announcement of the arrival of the first shipment from Petrocaribe, but there are still no buyers interested in the fuel.
According to the coordinator of the Energy Cabinet, María Antonieta Guillén, "next week the scope will be defined somewhat, after which perhaps in the last week of August and first week of September there could be a shipment of fuel which Honduras would receive ".
During the VIII Petrocaribe Summit it was reported that the rate of interest on oil bills will be changed, increasing from between 2% to 4%.
The Guatemalan Vice President Roxana Baldetti, explained that Venezuela has modified the interest payment according to oil and oil supplies for more than a dozen Latin American countries. Guatemala's concern is so great that it no longer considers the agreement attractive and could move away from it.
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Cummins Power Generation Inc. is a worldwide provider of electrical generators and power generation systems, components and services in standby power, distributed power generation, as well as auxiliary power in mobile applications to meet the needs of a diversified customer base.
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