Oil Economy Focus Rapid Review
According to Argus, Beijing is lining up a $5bn credit line for Venezuela from China Development Bank. It is tied to unspecified gold mining joint ventures and will be used to boost output at upstream joint ventures. This gold-backed credit will be used to raise crude production mainly at three upstream joint ventures in which Venezuelan state-owned PDVSA and Chinese CNPC are partners. The deal is a welcome lifeline for Venezuela because its crude output has declined significantly and PDVSA is in default on most of its debt. Additionally, China’s government is satisfied with Venezuela’s new economic reforms, which local independent economists say have only deepened the crisis.
LINK TO THE SOURCE ARTICLE: China promises lifeline to Venezuela
