News / Americas

China Provides $4B to Venezuela in Exchange for Oil

  • Chinese President Xi Jinping attends a meeting with Venezuelan President Nicolas Maduro (not pictured) at Miraflores Palace in Caracas, July 20, 2014.
  • Venezuelan President Nicolas Maduro, left,  presents Chinese President Xi Jinping with a replica of the sword of national hero Simon Bolivar during a ceremony at the National Pantheon in Caracas, July 20, 2014.
  • A Venezuelan child welcomes China's President Xi Jinping at Simon Bolivar airport, in Caracas, July 20, 2014.
  • Chinese President Xi Jinping, second from left, gestures as he is welcomed by his Venezuelan counterpart Nicolas Maduro at the Simon Bolivar airport, in Caracas, July 20, 2014.
  • Chinese President Xi Jinping, left, and Venezuelan President Nicolas Maduro, second from left, attend a ceremony at the tomb of the national hero Simon Bolivar at the National Pantheon in Caracas, July 20, 2014.
  • Chinese President Xi Jinping attends a meeting with Venezuelan President Nicolas Maduro, not pictured, at Miraflores Palace in Caracas, July 20, 2014.

The China-Venezuela Alliance

Reuters

China will provide Venezuela with a new $4 billion credit line under an agreement signed on Monday, with the money to be repaid by oil shipments from OPEC member Venezuela.

The deal was inked during a 24-hour visit to Venezuela by Chinese President Xi Jinping, who is on a tour of Latin America.

The money will go into the Joint Chinese-Venezuela Fund, which focuses on infrastructure and economic development in the South American country.

President Nicolas Maduro said the Venezuelan government would also put $1 billion into the fund, though officials later said that amount was in fact $2 billion.

The government said this weekend the fund has about $40 billion in it, though it was not clear if that included the amounts covered by Monday's agreement.

Officials said the credit would be repaid by shipments of about 100,000 barrels per day of crude oil and products.

No other terms were given.

Under the leadership of late socialist President Hugo Chavez, Venezuela vastly expanded its use of loan-for-oil agreements with China, which helped ease stretched state finances while also improving the cash flow of state oil company PDVSA.

Maduro, who won election last year after Chavez died from cancer, has continued that policy.

“It's a virtuous [financing] formula which does not create onerous debts,” Maduro said. “We've reached the point of no return in a deep relationship with China.”

PDVSA said Venezuela is now sending about 524,000 bpd to China, a figure expected to rise to one million bpd by 2016.

Bilateral trade between Venezuela and China has soared to $19.2 billion annually, compared with just $183 million in 1998, the year Chavez came to power, officials said.

Chinese entities participate in transport, housing, education, electricity, communication and vehicle-assembly projects in Venezuela.

“The Chinese economy continues along solid development lines and is in fine condition to keep growing,” said Xi, who was flying on to Cuba later on Monday. “China will be a cooperation partner for all countries of the world like Venezuela.”

Among 38 accords signed on Monday was also a memorandum of understanding for China's EximBank to lend $1 billion to PDVSA, an agreement for mineral exploration, the purchase of 1,500 Chinese busses and the creation of a new cement factory.

Venezuelan opposition politicians say much of China's loans in the last 15 years have been wasted amid corruption, inefficiency and lack of transparency in public funds.

“If we are the country with the world's biggest oil reserves, why do we have to indebt ourselves with China?” asked one opposition leader, Henrique Capriles, via Twitter, demanding information and accountability on a series of China-funded projects.  

You May Like

Karzai's Legacy: Missed Opportunities?

Afghanistan's president leaves behind a much different nation than the one he inherited, yet his legacy from 13 years in power is getting mixed reviews More

Video Secret Service Chief Under Fire for White House Security Breach

Julia Pierson faces tough questions from lawmakers after recent intrusion at White House, says: 'It is clear that our security plan was not executed properly' More

Frustrated, Liberian Students Want Ebola Fight Role

Thousands have volunteered to go to counties, rural villages to talk to people in their language about deadly virus More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Malaysia Struggles to Stop People Joining Jihadi
X
Mahi Ramakrishnan
September 30, 2014 2:16 PM
Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Iran's Rouhani Skeptical on Syria Strikes

Iranian President Hassan Rouhani expressed skepticism Friday that U.S.-led airstrikes in Iraq and Syria could crush Islamic State militants. From New York, VOA’s Margaret Besheer reports the president was also hopeful that questions about Iran’s nuclear program could be resolved soon.
Video

Video US House Speaker: Congress Should Debate Authorization Against IS

As wave after wave of U.S. airstrikes target Islamic State militants, the speaker of the Republican-controlled House of Representatives says he would be willing to call Congress back into session to debate a formal, broad authorization for the use of military force. VOA’s Michael Bowman reports from Washington, where legislators left town 10 days ago for a seven-week recess.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Video

Video Ebola Robs Liberians of Chance to Say Good-Bye to Loved Ones

In Liberia, where Ebola has killed more than 1,500 people, authorities have worked hard to convince people to allow specialized burial teams to take away dead bodies. But these safety measures, while necessary, make it hard for people to say good bye to their loved ones. VOA's Anne Look reports on the tragedy from Liberia.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

More Americas News

Poll: Record Number of Mexicans Crime Victims in 2013

While government data shows murder rate has fallen in past 2 years, crimes such as kidnapping and extortion, which affect wider swath of the population, rise
More

OAS Asks Members to Take In Guantanamo Detainees

Organization of American States issues appeal for member countries to take in detainees from US military prison
More

Recession Looms Over Venezuela, Official Data Under Wraps

Empty store shelves, closed factory gates and idled construction projects tell their own story
More

US Judge Holds Argentina in Contempt Over Bond Payment Plan

In rare move, District Judge Thomas Griesa says country taking 'illegal' steps to evade his orders in longstanding dispute with hedge funds over defaulted debt
More

Brazil's Rousseff Extends Lead Over Silva in Elections

President Dilma Rousseff's expected victory margin over closest rival Marina Silva has surged to 9 percentage points
More

8 Killed in Peru Quake

The victims of the 4.9-magnitude tremor were all from the mountainous community of Misca, where many homes collapsed in the quake
More