The government of the Bolivarian Republic of Venezuela has taken a decision to reduce by 50%, St. Vincent and the Grenadines’ debt under the PetroCaribe Energy Corporation Agreement.
Francisco M. Perez Santana, Head of Mission at the Embassy of the Bolivarian Republic of Venezuela here in St. Vincent and the Grenadines, said it was agreed with the Venezuelan government to apply a 50% Net Present Value (NPV) to the unexpired long term debt of St. Vincent and the Grenadines, as of September 28, 2017, with a value of US$63, 222, 240.75, which once brought at present value, the amount is contracted to US$31,611,120.37.
Speaking today on WEFM’s Morning programme, Ambassador Perez Santana said the new creditor of this debt is the Bank of the Bolivarian Alliance for the Peoples of Our America (ALBA).
According to the Ambassador, the invoking of the application of the NPV method was discussed during the Technical Seminar on Securitization of Petrocaribe Commitments, held in Caracas on July 17, 2016, with the participation of representatives of PDVSA Petroleo, PDV Caribe, the Eastern Caribbean Central Bank and the Bank of ALBA together with representatives of Eastern Caribbean countries, members of Petrocaribe.
He said this decision was conveyed to Prime Minister Dr. Ralph Gonsalves via a letter.
The Venezuelan Ambassador said it is only necessary now for the corresponding financing contract between St. Vincent and the Grenadines and the bank of ALBA to be signed, maintaining the same payment terms originally arranged under the Petrocaribe Energy Cooperation Agreement.
