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China makes effective 5bn dollars loan to Venezuela for 'development plans'

Monday, April 20th 2015 - 23:59 UTC
Full article 34 comments

China has awarded Venezuela 5 billion dollars for unspecified “development plans,” President Nicolas Maduro said on Sunday, approximately three months after an official visit to China. According to published reports, the loan is part of a 10 billion deal to be completed in the following months. Read full article

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  • Skip

    Lifeline!

    Apr 21st, 2015 - 01:37 am - Link - Report abuse 0
  • 313toBioBio

    Coming soon,a chinese financed great wall around the oil in venezuela and soy in argentina to keep this bullshi+ shared socialist future intact.

    Apr 21st, 2015 - 02:51 am - Link - Report abuse 0
  • Troy Tempest

    China is being smart about this.

    They know Venzla is desperate and will agree to any terms.

    The U.S. is already getting oil from Venzla - why should they care to spend more money on an unstable erratic country, run by a man who receives instructions from a straw bird on his hat???

    Apr 21st, 2015 - 06:58 am - Link - Report abuse 0
  • Stevie

    Hahahaha!
    I can assure you the Chinese loans are far more profitable for South America than the IMF/WB ones.
    China wants sort power, and they are getting it.

    No warmongering in the world by you lot will change that, and as you are all bankrupt, there's no way to compete with the Chinese for you.

    Flash those petrodollars!

    I heat Venezuelans uses them as toilet paper...

    Apr 21st, 2015 - 09:33 am - Link - Report abuse 0
  • Condorito

    It takes very special socialist skills to achieve both being broke and being one of the largest oil exporters. Well done Chavez.

    @Skip
    There is a lot more going on than just that. The Chinese want to get in to Venezuela the way the Soviets did with Cuba. Even Castro is not stupid enough to go down that path again.
    Expect Cuba to come in from the cold and a slow down in the FARC peace process .... oh.

    @canto del pajarito 313
    Argentina is only flirting with China. They are not in that deep.

    Apr 21st, 2015 - 09:33 am - Link - Report abuse 0
  • Skip

    Condorito

    I saw what happened to China's attempts at influence, soft power and control in both Burma and Sri Lanka!

    Spectacular failure.

    Will be interesting to see how much China retains in Venezuela after the collapse.

    Apr 21st, 2015 - 10:14 am - Link - Report abuse 0
  • Condorito

    Skip
    I agree, but it is not going to stop them trying.

    Apr 21st, 2015 - 10:27 am - Link - Report abuse 0
  • ChrisR

    @ 4 Breakdowns R Us'
    The only thing that's assured for you is yet another breakdown and by the gibberish contained in that post it won't be too long away.

    What about Vasquez then? He seems to be saying fuck Mercosur in his attempt to cosy up with the enemy: EUROPE!!!!

    What about brotherly love? Oh dear, never mind.

    Venezuela

    The Chin money will just delay the inevitable civil war.

    Does anybody think they will send troops into Venezuela to secure their 'investment' in the oil fields? Can't see it myself.

    Is U$D 5 Bn even enough to put things right given the disasters the military oil field management have presided over? Who knows, who cares?

    Apr 21st, 2015 - 11:08 am - Link - Report abuse 0
  • 313toBioBio

    @8..invade Venezuela? No. they're better using that money to promote a stock bubble at home and to wage an anticorruption campaign. They'd have to invade ecuador, argentina, and nicaragua at the same time.

    Apr 21st, 2015 - 11:17 am - Link - Report abuse 0
  • Stevie

    Chris, Europe isn't the enemy. They are allies in AIIB.

    Founding members even!

    As sson as they open up for agriculture import, we'll be more than happy to trade ;)

    Apr 21st, 2015 - 12:01 pm - Link - Report abuse 0
  • Conqueror

    'As is the rule with Chinese agreements, the loans are contingent on hiring Chinese construction, engineering and/or oil services companies.'

    No venez labour then. Just thousands of Chinese. Admitted to venezuela on an 'or else' basis.

    Does anybody know what Madurine's cut is?

    Apr 21st, 2015 - 12:15 pm - Link - Report abuse 0
  • yankeeboy

    The Chinese are terrible investors, they overpay for everything because they don't understand profit.
    Pretty soon they're going to need this U$ as they go into a faster moving deceleration.
    Watch them start dumping all the assets nobody else wanted to buy.

    Apr 21st, 2015 - 12:24 pm - Link - Report abuse 0
  • Troy Tempest

    12 YB

    “The Chinese are terrible investors, they overpay for everything because they don't understand profit.”

    Don't kid yourself - they understand profit.
    I would worry about human rights and environmental damage.

    Apr 21st, 2015 - 12:30 pm - Link - Report abuse 0
  • Stevie

    You guys mean the loan terms were better for South America when borrowing from IMF/WB?

    ;)

    Apr 21st, 2015 - 12:37 pm - Link - Report abuse 0
  • yankeeboy

    13. What i meant is they don't do anything to get profit. They do it for other more strategic purposes. I assume.
    They over pay to get rights or influence.
    That's why they over pay.
    The problem with that no country cares if they buy a mine. Its easy to take it away if they want it back. Buying a company or an oil field means nothing and is buying little influence.
    Being the lender of last resort has its advantages but in the end it won't advance their agenda in the long term.

    Stevie, Please stop interrupting the grown ups. Its rude and you have no idea what you are talking about. Neither the IMF or WB would have loaned to V so the point is moot.

    Apr 21st, 2015 - 01:12 pm - Link - Report abuse 0
  • Stevie

    You guys mean the loan terms were better for South America when borrowing from IMF/WB?

    Answer, yanqui...

    ;)

    Apr 21st, 2015 - 01:24 pm - Link - Report abuse 0
  • yankeeboy

    Stevie, The IMF loans when a country is bankrupt and defaults. The WB loans for poverty reduction.
    This Chinese loan is a “pay day” loan to boost reserves.
    WB/IMF couldn't loan for that even if V asked for it.

    V will default shortly and the Chinese don't have the will or U$ to rescue them.
    Watch and see.

    This “pay day” loan will is merely a short bridge to no where.

    26000 violent deaths a year and mile long queues for toilet paper will eventually get the majority of the population fed up enough to revolt its just a matter of time.

    Apr 21st, 2015 - 01:32 pm - Link - Report abuse 0
  • Stevie

    I'm talking about the terms of the loans, yanqui.
    You mean those were better for South America when borrowing from IMF/WB? Like Plan Brady?

    ;)

    Apr 21st, 2015 - 01:52 pm - Link - Report abuse 0
  • yankeeboy

    Do you know the terms of the Chinese loans that have been made to either Venezuela or Argentina?
    If so please post them.

    Your rabid ideology makes you stupid.
    Can you think critically?

    Apr 21st, 2015 - 02:07 pm - Link - Report abuse 0
  • Stevie

    But of course I do!
    This particular loan, is to be paid back with oil. Like all the other oil for loan deals Venezuela has made with China since, what was it 2006? 7? 8? Can't remember....

    Now you tell me, what where the terms on the Plan Brady?

    Apr 21st, 2015 - 03:41 pm - Link - Report abuse 0
  • yankeeboy

    20. So you don't know the terms. That's what I thought.

    Your ideology makes you stupid.
    What's even worse you work for a hated capitalist company and live in a free market. You must hate yourself.
    Such a hypocrite.
    You make me sick.

    Apr 21st, 2015 - 03:51 pm - Link - Report abuse 0
  • Stevie

    I told you the terms already...

    Plan Brady terms? No?

    ;)

    Apr 21st, 2015 - 04:14 pm - Link - Report abuse 0
  • yankeeboy

    I guess you don't know what “terms” mean, length, interest rate, currency its based on...etc etc etc

    You're not too bright huh?

    Apr 21st, 2015 - 04:30 pm - Link - Report abuse 0
  • Stevie

    http://chinaandlatinamerica.com/2014/10/20/cheaper-oil-prompts-changes-to-china-venezuela-loans/

    There you go.
    Oil for loans.
    Current market price.
    Local currency.

    Now, Plan Brady.

    Apr 21st, 2015 - 07:30 pm - Link - Report abuse 0
  • Klingon

    I suspect China will put a refinery in VZ to break that heavy crude. They don't want that nasty contraption stinking up their backyard. Environmental officials can be bought for a few $USD in VZ.

    Apr 21st, 2015 - 08:00 pm - Link - Report abuse 0
  • Briton

    In my opinion, the likes of china is buying soft power to be used when required later,

    but they do say, once bought, all ways in the lenders debt..

    Apr 21st, 2015 - 08:11 pm - Link - Report abuse 0
  • Stevie

    See yanqui? That's why you can't compete with the Chinese. You have canalized the cash of the entire nation into the pockets of a few, and you can't afford to keep up with the Chinese in the battle for soft power. And warmongering is expensive business for the voters. In fact, the only thing you do share as a nation, is a huge debt.

    Which only leaves you the dollar...

    You fail to spot the game. Fight for that dollar, or wave goodbye to your “privileged” lifestyle...

    Apr 21st, 2015 - 08:11 pm - Link - Report abuse 0
  • Conqueror

    @24. What's Plan Brady? Do you mean the Washington Consensus, moron? Yes, we can see that thicko argieland screwed up. AGAIN. Didn't anybody think to use something in short supply in argieland? Intelligence. In fact, the country's adoption of an idiosyncratic fixed exchange rate regime (“convertibility”), which became increasingly uncompetitive, together with its failure to achieve effective control over its fiscal accounts, both ran counter to central provisions of the Consensus, and paved the way directly for the ultimate macroeconomic collapse. The market-oriented policies of the early Menem-Cavallo years, meanwhile, soon petered out in the face of domestic political constraints (including Menem's preoccupation with securing re-election). At what point in time will you get a grip on economics, politics and reality. It's just one with argieland's usual excuse. It's always someone else's fault. When your nuclear reactor blows up and destroys half the country, whose fault will that be?

    Apr 21st, 2015 - 08:19 pm - Link - Report abuse 0
  • ChrisR

    @ 28 Conqueror

    Oh, dear, you have single handedly brought 'Breakdowns R Us' a little closer to the edge of insanity with your post.

    How do you expect him to understand all of the reality of the Brady Plan?

    He is after all an argie troll.

    You are cruel, but I do like you!

    Apr 21st, 2015 - 08:49 pm - Link - Report abuse 0
  • Stevie

    Wow conq! You almost sounded intelligent there!
    My sincerest salutes.
    We can agree or disagree on the causes that led to the default. In all cases, the terms of Plan Brady, didn't benefit Argentina, nor any of its other victims, Uruguay included. It was just another zero-sum approach to US benefits (read pockets of a few, non-US included).
    Chinese loans are different, their game is focused on long term invesrments. They have secured 50B dollars worth of oil from Venezuela since the oil for loan deal started. The have an outspoken intention to fund projects, nonprofit at worst, in order to secure future shipments.

    My point was which deal was the best for South America.

    But again, thank you for at least trying!

    Apr 21st, 2015 - 08:52 pm - Link - Report abuse 0
  • Skip

    Don't forget how those projects must have Chinese workers, managers and materials.

    Apr 21st, 2015 - 09:56 pm - Link - Report abuse 0
  • Briton

    China has enough on its plate,
    what with Turkey and Greece.....lol

    Apr 22nd, 2015 - 06:49 pm - Link - Report abuse 0
  • ChrisR

    @ 32 Briton

    But where's the gravy! :o)

    Apr 22nd, 2015 - 06:52 pm - Link - Report abuse 0
  • Briton

    Couldn't think of one yet,

    Apr 23rd, 2015 - 11:30 am - Link - Report abuse 0

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