Zelaya appointed to Petrocaribe

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Former Honduran President Manuel Zelaya was appointed by President Chavez of Venezuela the head of a new political council in Petrocaribe, founded by Chavez in 2005 and bringing together 18 Caribbean and Central American countries, as he prepared to begin a life of relative obscurity in exile in the Dominican Republic.

Analysts said the appointment by Chavez was more than a gesture of friendship for Zelaya and was likely spurred by Clinton's tour. Venezuelan officials said they would seek to promote democratic ideas in the Petrocaribe region -- an indication that Chavez planned to win over recipients of his cheap oil to extend his anti-U.S. campaign to the region.

Most of the 18 Petrocaribe nations that depend on Venezuela's discounted oil so far have avoided getting involved in Venezuela's ongoing quarrel with the United States over the deployment of U.S. troops in Colombia to control narcotics trade into North America, or over Chavez's efforts to build a diplomatic front against Washington in other Latin American forums.

Under current arrangements, Petrocaribe members are allowed to buy up to 185,000 barrels of oil a day from Venezuela at a discount and only pay a part of the bill upfront. In some cases, Venezuela offers up to 60 percent deferred payment with 1 percent interest.

Lately, however, the finances of Petrocaribe have been the subject of controversy, amid reports that members owe Venezuela very large amounts they have no means of paying with their current meager incomes. The Dominican Republic owes Venezuela more than $1.23 billion -- almost three times the amount it owed Caracas five years ago.

Some of the debts may never be repaid, analysts said. Venezuela tried to punish the Dominican Republic when it recognized Lobo's new government by pulling out of a deal to share ownership of a Dominican refinery.

Other Caribbean countries dependent on Venezuela's discounted oil have also piled up debts to Venezuela, pleading poverty in the aftermath of the global economic downturn. As Venezuela itself grapples with severe energy and water shortages because of a continuing drought, its own financial strength is being tested by poor economic indicators, raising questions about the Petrocaribe-Venezuela partnership.

http://www.upi.com/Science_News/Resource-Wars/2010/03/08/Zelayas-job-disguises-Petrocaribes-financial-woes/UPI-17491268093476/