Chavez loosens terms of oil-supply pact

Venezuelan President Hugo Chavez touted a pact delivering fuel to Caribbean nations and loosened the financing terms to aid countries struggling with high oil prices.

Chavez on Sunday said nations taking part in the Petrocaribe initiative will now be required to pay just 40 percent of the bill within 90 days -- down from the current 50 percent. He said the rest can be paid over the next 25 years at a fixed interest rate of 1 percent as long as oil prices are above $100 a barrel.

"That could compensate for the horrible curve of the jump in oil prices," Chavez said. He added that 70 percent of payments may be deferred, if oil reaches $150 a barrel.

Chavez said Venezuela aims to continue strengthening the Petrocaribe accord and make it into an "anti-hunger shield" for countries in the Caribbean and Central and South America.