El Salvador: Alba Petróleos and Politics

The firm Alba Petróleos is owned in 40% by municipalities governed by President Funes' Party, and in 60% by PDV Caribe, a subsidiary of PDVSA of Venezuela.

Thursday, February 21, 2013

An article by Juan Valiente points to the economic growth of Alba Petróleos and the use such growth in El Salvador as a political instrument subordinated to the will of a foreign power.

"... The problem with ALBA Petroleos is the nature of their economic resources. In this mixed company ENEPASA (a decentralized public entity with over twenty-four member municipalities) participates as partner with 40% and PDV Caribe, SA, a subsidiary of PDVSA of Venezuela, with 60%. The money is generated from the purchase of oil and oil products from Venezuela. "

"... It is public money that belongs to another country and with a particular purpose it leaves El Salvador in conditions that are outside of the market. From the fuel sales, PDVSA gives its sister company in the country a very high percentage long-term loan with a laughable rate. The percentages in question are close to 50% with terms of 23 or 25 years and rates close to 1%. "

"... It is public money from another country that is being used to influence domestic politics. Nothing has ever happened like this before. Not even the "demons of imperialism" which attacked the leaders of ALBA Petroleos, used their money so brazenly. Its one thing for a country to have partnerships with the state, and other thing for institutions to promote alternatives to economic development. "

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