Director of the IMF’s Western Hemisphere Department, Alejandro Werner, says the likelihood of a fall-out in financing from the Petro Caribe agreement with Venezuela has increased.
Mr. Werner was speaking on day one of a two-day High Level Caribbean Forum, under the theme Unlocking Economic Growth, hosted by the IMF and the Jamaican government.
The IMF Director says the multilateral anticipates a reduction in oil exports from Venezuela and this will have dire implications for the financing of countries participating in the Petro Caribe agreement.
Mr. Werner says with the heightened probability of a scale down in Petro Caribe, participating Caribbean countries should begin to put contingencies in place.
Mr. Werner also noted that while there will be some relief from recent substantial reductions in the price of oil on the international market, this will be tempered by an expected strengthening in the US dollar.
He says with an expectation of continued strengthening in the US economy and as US interest rates begin to rise, the value of US dollar will increase as investors flock to US assets.