Venezuela to get $10 billion loan from China :)

[C130]

UPDATE 3-China to lend Venezuela $10 bln in coming months -source| Reuters

By Corina Pons and Alexandra Ulmer

(Reuters) - China will lend Venezuela around $10 billion in coming months, half as part of a bilateral financing deal and the other half for the development of oil fields, a senior official at state oil company PDVSA said on Thursday.

Fresh funds are a boon for financially squeezed Venezuela and will likely increase market confidence over the OPEC country's ability to meet major debt payments and arbitration awards. Venezuelan bonds rose on Thursday following the news.

However, relief may be tempered as the loans appear largely earmarked and will only go so far in countering the steep tumble in oil prices and Venezuela's severe recession.

The first $5 billion loan, a renewal of the long-standing Joint Chinese-Venezuelan Fund, will be destined for wide-ranging projects, the official said. With a five-year payment term instead of the usual three, the loan will be signed this month and deposited in Venezuela's international reserves in April.

The other "special" $5 billion loan will likely stipulate hiring Chinese companies to boost production in PDVSA's mature oil fields, the source said. That 10-year loan will be signed in June, taken out by Venezuelan state development bank Bandes, and invested in 2015.

"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.



throwing money at a dead horse. not sure how this is going to help Venezuela in the long term or even short term. especially if oil doesn't get back up near $100 a barrel this year.

they are bleeding money.

 

[Lux de Veritas]

UPDATE 3-China to lend Venezuela $10 bln in coming months -source| Reuters

By Corina Pons and Alexandra Ulmer

(Reuters) - China will lend Venezuela around $10 billion in coming months, half as part of a bilateral financing deal and the other half for the development of oil fields, a senior official at state oil company PDVSA said on Thursday.

Fresh funds are a boon for financially squeezed Venezuela and will likely increase market confidence over the OPEC country's ability to meet major debt payments and arbitration awards. Venezuelan bonds rose on Thursday following the news.

However, relief may be tempered as the loans appear largely earmarked and will only go so far in countering the steep tumble in oil prices and Venezuela's severe recession.

The first $5 billion loan, a renewal of the long-standing Joint Chinese-Venezuelan Fund, will be destined for wide-ranging projects, the official said. With a five-year payment term instead of the usual three, the loan will be signed this month and deposited in Venezuela's international reserves in April.

The other "special" $5 billion loan will likely stipulate hiring Chinese companies to boost production in PDVSA's mature oil fields, the source said. That 10-year loan will be signed in June, taken out by Venezuelan state development bank Bandes, and invested in 2015.

"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.



throwing money at a dead horse. not sure how this is going to help Venezuela in the long term or even short term. especially if oil doesn't get back up near $100 a barrel this year.

they are bleeding money.

This is an attack against Monroe Doctrine.

I do not think Venezuela is unsustainable, but on the contrary. I long the collapse of Venezuela economy is a evil plan by their oligarch, as well as recent crude plunge. I suspect one main reason of collapse of Venezuela economic is due to massive capita outflow.

The problem with Hugo Chavez is he is a kind man, but much merciless attacked by the rich. Chavez has not really confiscate the rich wealth and he sincerely wish national conciliation. The rich got to keep their TV and broadcast programs attacking Chavez in daily basis.

Basically, Maduro can stablilize the economy simply by imposing tougher capital control to prevent wealth flight and massive nationalization of wealth.

If Cuba can survive, why not Venezuela with far more resources.

 

[sahaliyan]

This is an attack against Monroe Doctrine.

I do not think Venezuela is unsustainable, but on the contrary. I long the collapse of Venezuela economy is a evil plan by their oligarch, as well as recent crude plunge. I suspect one main reason of collapse of Venezuela economic is due to massive capita outflow.

The problem with Hugo Chavez is he is a kind man, but much merciless attacked by the rich. Chavez has not really confiscate the rich wealth and he sincerely wish national conciliation. The rich got to keep their TV and broadcast programs attacking Chavez in daily basis.

Basically, Maduro can stablilize the economy simply by imposing tougher capital control to prevent wealth flight and massive nationalization of wealth.

If Cuba can survive, why not Venezuela with far more resources.

Cuba is smaller,and Cuba can survive because Chavez gave them cheap oil,and let the Cuban doctors served in Venezuela to ear the money gave Cuban government.
Chavez's utopia can't survive in real world,capitalism is the only way can survive in the long run

 

[gambit]

This is an attack against Monroe Doctrine.

I do not think Venezuela is unsustainable, but on the contrary. I long the collapse of Venezuela economy is a evil plan by their oligarch, as well as recent crude plunge. I suspect one main reason of collapse of Venezuela economic is due to massive capita outflow.

The problem with Hugo Chavez is he is a kind man, but much merciless attacked by the rich. Chavez has not really confiscate the rich wealth and he sincerely wish national conciliation. The rich got to keep their TV and broadcast programs attacking Chavez in daily basis.

Basically, Maduro can stablilize the economy simply by imposing tougher capital control to prevent wealth flight and massive nationalization of wealth.

If Cuba can survive, why not Venezuela with far more resources.

Did you know that Orinoco crude is considered among the world's shittiest oil ? Did you know that most of the world's refineries that are capable of handling Venezuelan crude are in the US, and that to them, Orinoco crude is low priority ? So yes, we hope Maduro take your advice. That would accelerate Venezuela's descent into Cuba's status.

 

[Hamartia Antidote]

Well Venezuela doesn't have much choice other than China. Too many countries/banks have been burned bad in the past.

Example:
Latin American debt crisis - Wikipedia, the free encyclopedia

 

[C130]

This is an attack against Monroe Doctrine.

I do not think Venezuela is unsustainable, but on the contrary. I long the collapse of Venezuela economy is a evil plan by their oligarch, as well as recent crude plunge. I suspect one main reason of collapse of Venezuela economic is due to massive capita outflow.

The problem with Hugo Chavez is he is a kind man, but much merciless attacked by the rich. Chavez has not really confiscate the rich wealth and he sincerely wish national conciliation. The rich got to keep their TV and broadcast programs attacking Chavez in daily basis.

Basically, Maduro can stablilize the economy simply by imposing tougher capital control to prevent wealth flight and massive nationalization of wealth.

If Cuba can survive, why not Venezuela with far more resources.

monroe doctrine isn't in effect anymore.

hugo policies have done more harm than good. the easy ride is over. he was lucky to come into power when oil shot up from $30 to over $100.

Cuba only survived because of cheap Russia oil then cheap discounted oil from Venezuela. they have very austere policies, but it's not a paradise...that's why thousands of Cubans flee Cuba to the U.S every year.


Cuban runs Venezuela from the shadows. who knows how much wealth they sucked out of Venezuela is in either Cuba or Switzerland accounts.

 

[Echo_419]

Well Venezuela doesn't have much choice other than China. Too many countries/banks have been burned bad in the past.

Example:
Latin American debt crisis - Wikipedia, the free encyclopedia

I hope the Chinese don't burn themselves 10 Billion is a huge amount

 

[Beast]

I hope the Chinese don't burn themselves 10 Billion is a huge amount

Fortunately, China is loaded. 10billion is not a lot. If Venezuela cant paid they can lease a military port or overseas airbase to China as repayment.

 

[Screambowl]

chinese are influencing latin america.

first Argentina, then Venezuelan , next might be mexico

 

[jamahir]

throwing money at a dead horse.

the horse is very much alive... though cia, mossad and co. are trying to ensure the horse bleeds.

 

[C130]

the horse is very much alive... though cia, mossad and co. are trying to ensure the horse bleeds.

really?? care to explain.

 

[Echo_419]

Fortunately, China is loaded. 10billion is not a lot. If Venezuela cant paid they can lease a military port or overseas airbase to China as repayment.

Yeah but still that's 10 billion wasted you could invest that money in a better country

really?? care to explain.

What more could you hear from a Commie

 

[Beast]

Yeah but still that's 10 billion wasted you could invest that money in a better country

How can that be wasted when China military claim a foothold in South America if Venezuela can't repaid? Its called strategic investment.

 

[Echo_419]

How can that be wasted when China military claim a foothold in South America if Venezuela can't repaid? Its called strategic investment.

I was speaking about the Short Term returns

 

[Beast]

I was speaking about the Short Term returns

The only short term return is oil. To maximise venezuela oil is by using mega oil ship to reduce shipping cost of fuel.