Venezuela Turmoil Signals End of Oil-for-Jeans Giveaway

For a decade, countries from Guyana to Nicaragua have gained from a program that allowed them to trade for Venezuelan oil using everything from the jeans they produced to the pasta they made. Now, the $8 billion Petrocaribe subsidy, which also allows countries to finance part of their oil purchases at 1 percent for 25 years, is looking less secure as Venezuela faces inflation that’s risen to 63 percent and the world’s widest budget deficit. In response, at least four countries are taking steps to reduce their reliance on Venezuela’s subsidy as crude prices plunge, according to the International Monetary Fund. It’s a move other countries should follow, said David Voght, managing director of energy consultancy IPD Latin America. More…