Venezuela, Paraguay Settled Problems, Signed a Deal

Venezuela signed a deal with Paraguay on shipping 18,600 barrels of crude oil per day starting next March on favorable terms.

The pact was signed by Venezuela's state-owned oil company Petroleos de Venezuela (PVDSA) and Paraguay's state oil company Petropar in Asuncion.

Under the renewed deal, the PVDSA will supply 18,600 barrels ofcrude oil per day to Petropar after the agreement comes into effect, while granting export credit to 25 percent of the oil purchased by Petropar, with a 15-year loan on a fixed interest rate of 2 percent.

Talks between the two companies on renewing the pact had been stalled over repayment. The PVDSA asked Petropar to provide letters of credit or a financial guarantee, which was rejected by the Paraguayan company.

Agreement was reached only with the intervention by the presidents of the two countries.