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

Video Iran Nuclear Deal Becomes US Campaign Issue

Voters in three crucial battleground states - Florida, Ohio and Pennsylvania - overwhelmingly oppose nuclear deal with Iran More

With IS in Coalition Cross-Hairs, al-Qaida's Syria Affiliate Reemerges

Jabhat al-Nusra has rebounded, increasingly casting itself as a critical player in battle for Syria’s future More

Lessons Learned From Katrina, 10 Years Later

FEMA chief Craig Fugate says key changes include better preparation, improved coordination among state, federal assistance agencies 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.
Colombians Flee Venezuela as Border Crisis Escalatesi
X
August 27, 2015 2:08 AM
Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Is China's Economic Data Accurate?

Some investors say China's wild stock market gyrations have been made worse by worries about the reliability of that nation's economic data. And some critics say the reports can mislead investors by painting an unrealistically-strong picture of the economy. A key China scholar says Beijing is not fudging ((manipulating)) the numbers, but that the economy is evolving quickly from smoke-stack industries to services, and the ways of tracking new economic activity are falling behind the change. V
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Shipping Containers Provide Experimental Housing

Housing prices around the San Francisco Bay area are out of reach for many people, so some young entrepreneurs, artists and tech industry workers are creating their own houses using converted shipping containers. But as VOA's Mike O’Sullivan reports from Oakland, the effort requires ingenuity and dealing with restrictive local laws.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video Technique May Eliminate Drill-and-Fill Dental Care

Many people dread visiting dentists because they're afraid of drills. Now, however, a technology developed by a British firm promises to eliminate the need for mechanical cleaning of dental cavities by speeding a natural process of tooth repair. VOA’s George Putic reports.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.
Video

Video French Experiment in Integrating Roma Under Threat

Plans to destroy France’s oldest slum have sparked an outcry on the part of its Roma residents. As Lisa Bryant reports from the Paris suburb of La Courneuve, rights groups argue the community is a fledgling experiment on integrating Roma who are often outcasts in many parts of Europe.
Video

Video Kenyans Turn to Agriculture for Business

Each year Kenyan universities continue to churn out graduates for the job market despite the already existing high rate of unemployment among youth in the country. Some of these young men and women have realized that agriculture can be as rewarding as any other business or job, and they are resorting to agribusiness in large numbers as a way of tackling unemployment. Rael Ombuor reports for VOA.
Video

Video First Women Graduate Elite Army Ranger School

Two women are making history for the U.S. Army by proving they are among the toughest of the tough. VOA's Carla Babb reports from Fort Benning, Georgia as 94 men and those two women rise as graduates of the difficult Ranger school.

VOA Blogs

More Americas News

Cancer, Transplant Patients Rail at Drug Shortages in Venezuela

Currency controls, slumping production and smuggling have caused acute shortages of medical supplies in the socialist-led nation
More

Guatemalan Prosecutors Urge President to Resign Amid Scandal

Government comptrollers' office also issued a statement saying Perez Molina should resign 'to avoid greater social unrest that could have unpredictable consequences'
More

Bolt Sprints to Double Gold in Beijing

Jamaican's victories take place on track where in 2008 he first made headlines by winning Olympic gold medals in record fashion at Bird's Nest Stadium
More

Red Cross Makes Plea for Documentation on 'Disappeared'

1980s saw disappearance of thousands of people as consequence of political unrest; disappeared now include people who go missing in natural disasters and wars
More

WFP: Haiti Drought Cuts Harvests, Raises Prices, Food Crisis Looms

Drought has led to acute water shortages, shrivelled harvests and raised food prices, weakening fragile food supply and worsening hunger among poor
More

Colombia Rebel Pleads Guilty in US to Hostage-Taking

Diego Alfonso Navarrete Beltran charged along with 18 other FARC members with crimes relating to 2003 kidnappings of Americans Marc D. Gonsalves, Thomas R. Howes, Keith Stansell
More