Chinese loans to Venezuela amount to USD 46 billion in four years
Venezuela has been granted 55% of the loans authorized for the region
Twelve Latin American countries received USD 85.8 billion in credits from China from 2005-2012. The amount exceeds the credits granted by the World Bank (USD 53.3 billion) and the Inter-American Development Bank (USD 66.9 billion) during the same period.
The information was disclosed in a comparative analysis conducted by the Faculty of Economics, National Autonomous University of Mexico, on the loans granted by China to Latina American countries. The analysis indicates that Venezuela has received USD 46.5 billion, which is 55% of the total loans granted to the region.
Resources have been directed mainly to government projects, as well and programs of Venezuela's state-owned oil company Pdvsa.
Venezuelan authorities have informed that part of the loans has already been repaid and additional credits are under negotiation to fuel the Venezuela-China Fund.
The report highlights that loans boomed in 2009-2010. In such period, Venezuela and China signed a deal for USD 20 billion payable in 10 years. In the same period, China granted USD 10 billion in loans to Brazil and Argentina.
Translated by Jhean Cabrera
Cristian Fonseca, a businessman in La Candelaria district downtown Caracas, was doing the accounts in his small shop office on Sunday December 21, 2008. The Christmas shopping season kept him working late hours into the night. It was around 11 p.m. and his phone rang. A friend broke the bad news to him over the telephone.