Venezuela’s Maduro secures another $5 billion loan from China for oil sector
CARACAS, Venezuela – Venezuelan President Nicolás Maduro announced China has granted his government a $5 billion loan to boost oil output in the recession-hit OPEC state.
“We have signed a special program for a $5 billion loan to progressively increase oil production in the coming months,” Maduro said on state television Tuesday night in a broadcast from China, where he is on a visit seeking support for Venezuela’s sinking economy.
The two countries will negotiate “joint projects in the areas of reconnecting oil wells and services associated with crude production,” the socialist leader said.
China, a major political and economic ally, also agreed to a gold mining deal and a joint development plan through 2025, he added.
Maduro traveled on Aug. 29 to China and Vietnam, saying the trip was aimed at “seeking support in these difficult times.” His cash-strapped government already had secured a $5 billion loan from China in April.
Venezuela’s state oil giant, PDVSA, the engine of the economy, saw output fall by 4 percent last year, to 2.78 million barrels a day.
The slide in global oil prices — down from around $120 a barrel in June last year to less than $50 now — has exacerbated the crisis gripping Venezuela’s economy, hit by runaway inflation, shrinking reserves and severe shortages of basic goods.
Venezuela, which has the world’s largest proven oil reserves, has borrowed more than $50 billion from China in an oil-for-loans deal struck by Maduro’s late mentor, Hugo Chávez in 2007.
You may be interested
Alert declared once more for Pacific slope due to heavy rainsKatherine Stanley - October 23, 2017
The National Meteorological Institute (IMN) has announced that rains are expected to increase significantly on Costa Rica's Pacific Slope beginning…
Women’s Hackathon takes place in San JoséThe Tico Times - October 23, 2017
More than 200 women from Central America, Mexico and the Dominican Republic gathered in San José over the weekend for…
Road safety in Costa Rica: the law of the jungle must rule no moreRoberto Guzmán - October 23, 2017
In the wake of the killing of another athlete in Costa Rica by a drunk driver, we feel impelled to…