File photo shows St. Kitts and Nevis Prime Minister Hon. Dr. Demzil L. Douglas (right) and Venezuelan President His Excellency Mr. Hugo Chavez at the First Petro Caribe Summit in Jamaica in June 2005. (Photo by Erasmus Williams)

BASSETERRE, ST. KITTS, JUNE 3RD 2009 (CUOPM) - Guatemala will officially become a member of the Venezuela-led oil association Petrocaribe during the 6th Petro Caribe Summit in St. Kitts next week, the country’s Foreign Minister His Excellency Haroldo Rodas said on Tuesday.

Guatemalan President His Excellency Alvaro Colom will sign a join-in agreement during the 12 June meeting, alongside his Venezuelan counterpart His Excellency Hugo Chavez, news reports from Guatemala quoted Rodas as saying.
 
Petrocaribe, created in June 2005, allows Caribbean and Latin American nations to buy Venezuelan oil or refined products on credit. Only 40 percent of purchases demand in time payment, and the remainder can be paid within 25 years at a 1 percent annual interest rate. Additionally, poor nations can pay parts of the cost with goods or services.
 
Guatemala has been an associate member since July 2008, but has not yet signed the bi-lateral pact or a framework agreement with Venezuela on hydrocarbon purchases. Venezuela has committed to selling Guatemala 20,000 barrels of diesel per day.
 
Costa Rica and Panama are also expected to sign up for the oil alliance at the summit.