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

Turkey's Controversial Reform Bill Giving Investors Jitters

Homeland security reform bill will give police new powers in search, seizure, detention and arrests, while restricting the rights of suspects, their attorneys More

Audio Slideshow In Kenyan Prison, Good Grades Are Path to Freedom

Some inmates who get high marks could see their sentences commuted to non-custodial status More

'Rumble in the Jungle' Turns 40

'The Champ' knocked Foreman out to regain crown he had lost 7 years earlier when US government accused him of draft-dodging and boxing officials revoked his license 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.
Victorious Secularists Face Challenge to Form Government in Tunisiai
X
Henry Ridgwell
October 30, 2014 11:39 PM
Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid

More Americas News

Mexican Court Frees Ex-US Marine Jailed on Gun Charges

Sergeant Andrew Tahmooressi had been behind bars since March for bringing guns into the country
More

Mexico Police Investigate Police Link in Shooting Deaths of US Siblings

Deaths of Erica Alvarado Rivera, her brothers and boyfriend as they traveled to visit family is third high-profile case in recent months that links security forces to extrajudicial killings
More

Lawmaker Blasts US Participation in Cuba Ebola Meeting

Mario Diaz-Balart said ALBA, which chaired the meeting, 'was created solely to oppose US interests' and US participation was 'ludicrous'
More

US Coast Guard Rescues 33 Cubans at Sea

Because the overloaded boat did not make landfall, those rescued will be returned to Cuba
More

Western Experts Increasingly Fear Lone Wolf Terror Attacks

Slaying and assault on Canada's parliament building was followed by a hatchet attack on two New York City policemen
More

Search Underway at New Site in Mexico Missing Students Case

This week marked one month since the students went missing after clashing with police in mysterious circumstances
More