Venezuela's Executive Office to seek additional loans from China

A new year has begun and the Venezuelan Government is already facing imbalances in its accounts. In an attempt to meet demands from public institutions, the Government may seek additional loans from China.

With such money, authorities may increase transfers to parallel funds, and would have leeway to put off some economic measures, such as devaluation of the Venezuelan bolivar. 

Following the negotiations conducted at the end of 2012, additional USD 8 billion may be available to the Venezuelan Government through the Venezuela-China Joint Fund during the first half of 2013.

The China Development Bank will disburse some USD 4 billion in the next weeks as agreed during the first quarter of 2012. Further, in the first half of 2013, another credit line amounting to USD 4 billion may be negotiated.  

Venezuela's Finance and Planning Minister Jorge Giordani has pointed out, "Funds from the loan we agreed upon in March (2012) will be disbursed. The second credit line negotiated in 2011 is already being repaid. In the first half of 2013, the third credit line may be negotiated."

Translated by Jhean Cabrera