Amid “US Coup”, Venezuela Takes Another $5 Billion Loan From China
The people of Venezuela can rejoice… not so fast. Amid paranoid-sounding (though not unlikely) rantings about US-created coups (and blaming ‘economic’ war for his nation’s Socialist utopia hyperinflation), it appears President Maduro just got another life-line (or more rope to hang himself). After begging China’s leader Xi early in January for moar money (and getting it), China – which is already Venezuela’s biggest creditor with over $50 billion loaned since 2007 – as Reutersreports, is said to plan on signing another $5bn loan to Venezuela for “wide-ranging” projects like “mature oil fields.” So, it appears China is enabling Maduro to hollow out his economy even more.
China is poised to lend Venezuela around $10 billion in coming months, half as part of a bilateral financing deal and the other half for development of oil fields, a senior official at state oil company PDVSAsaid on Thursday.The first $5 billion loan, part of the Joint Chinese-Venezuelan Fund, is due to be signed this month and will be destined for wide-ranging projects in the OPEC country, said the official.
The other separate $5 billion loan is set to be clinched in June and will likely stipulate contracting Chinese companies to boost production in PDVSA’s mature oil fields, the source added.
“China wants to decisively back investments in areas like mature oil fields so that PDVSA can rapidly increase its production,” said the source, who asked not to be identified.
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Maybe it’s time to stock up on condoms and toilet paper?
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