Well-known Chinese news site Sina recently reported that Petroleum of Venezuela (PDVSA) announced that China will provide Venezuela with a new loan of around US$10 billion. Half of the loan will be under the China- Venezuela Joint Fund, which will fund various investment plans in multiple fields. This portion of the loan will have a repayment period that will extend from three years to five years. The other half of the loan, with a 10-year repayment period, will be used to hire Chinese companies to help improve oil field development. After the announcement, Venezuela saw a jump in its national bond prices. So far China has provided Venezuela a total of US$45 billion in loans in exchange for low-price oil and other fuels. Most of these loans have been deposited into Venezuela’s infrastructure and economic development funds.
Source: Sina, March 20, 201