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China to Loan $1bn in Exchange for Ecuador Oil

The state-owned China Development Bank will loan $1 billion to Ecuador to finance energy and infrastruture in exchange for Ecuadoran oil, reports Caijing, a top financial magazine in China. According to the agreement, the loan will be used mostly to help to finance oil, natural gas and potential hydropower projects that could boost energy production. Ecuador will provide mid to long term oil shipments as payment for the loan.

China has spent billions of dollars on energy and mining projects across Latin America in recent years in a bid to gain control over the oil, metals and other natural resources needed to fuel its economy.

Source: Caijing, April 7, 2009