Skip to content
Subscriber Only

Venezuela Turmoil Signals End of Oil-for-Jeans Giveaway

Updated on

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.