Costa Rica Coffee Guide

Venezuela’s Maduro secures another $5 billion loan from China for oil sector

September 2, 2015

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

OECD urges Costa Rica to maintain fiscal discipline in recovery after pandemic
Costa Rica
477 views
Costa Rica
477 views

OECD urges Costa Rica to maintain fiscal discipline in recovery after pandemic

AFP and The Tico Times - July 16, 2020

The Organization for Economic Cooperation and Development (OECD) on Wednesday urged Costa Rica to maintain rigorous fiscal discipline as seeks…

FIFA reveals official 2022 Qatar World Cup schedule
Costa Rica
351 views
Costa Rica
351 views

FIFA reveals official 2022 Qatar World Cup schedule

AFP - July 15, 2020

Qatar will kick off the 2022 Men's World Cup at the Al Bayt Stadium in Al Khor, organizers announced on…

Costa Rica still plans August airport reopening, Health Ministry says
Costa Rica
4780 views
Costa Rica
4780 views

Costa Rica still plans August airport reopening, Health Ministry says

Alejandro Zúñiga - July 15, 2020

Despite a recent increase in coronavirus cases, hospitalizations and deaths, Costa Rica still plans to reopen its airports for international…