Add St. Lucia News Online on Whatsapp +1758 712 6700; get major headlines and source us with news tips, photos, and videos

China to lend Venezuela $5 billion

By Caribbean News Now

 Share This On:

(CARIBBEAN NEWS NOW) — China has agreed to extend a $5 billion credit line to cash-strapped Venezuela, as President Nicolas Maduro headed to Beijing, Bloomberg News reported.

Venezuelan finance minister, Simon Zerpa, told Bloomberg that Venezuela would repay the loan with either cash or oil. The two countries were also expected to sign what Zerpa described as a strategic alliance on gold mining.

Maduro is seeking additional Chinese support to weather an economic meltdown since oil prices collapsed nearly four years ago that has led to civil unrest and the collapse of the country’s currency. Maduro has halted most payments on Venezuela’s foreign debt and owes more than $6 billion to bondholders, cutting off most sources of new financing.

China has been a key lender to Venezuela since 2008, when it first provided funds for infrastructure and oil projects in the country, Bloomberg noted.

China has lent an estimated $70 billion in several installments, most to be paid back in oil, according to Asdrubal Oliveros, director of Ecoanalitica, a consulting firm in Caracas.

(0)(0)
This article was posted in its entirety as received by stlucianewsonline.com. This media house does not correct any spelling or grammatical error within press releases and commentaries. The views expressed therein are not necessarily those of stlucianewsonline.com, its sponsors or advertisers.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.