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Venezuela receives new $5 billion loan from China

Published 20/04/2015, 14:38
© Reuters. Venezuela's President Nicolas Maduro waves during his weekly broadcast "en contacto con Maduro" (In contact with Maduro) in Caracas

CARACAS (Reuters) - Venezuela has received a new $5 billion (3.35 billion pounds) loan from China, President Nicolas Maduro said, part of an oil-for-loans deal that has become a key source of financing for the cash-strapped OPEC nation that is struggling with low crude prices.

Under the arrangement created by late socialist leader Hugo Chavez, China provides funding for development projects and Venezuela repays in shipments of oil and fuel.

"We have received $5 billion more to finance development," Maduro said on Sunday during a televised speech.

An official at state oil company PDVSA had told Reuters in March that Venezuela was in talks for two financing deals with China for $5 billion each, one for economic development and the other for oil investment.

China has lent Venezuela more than $45 billion since the two countries set up the oil-for-loans agreement.

© Reuters. Venezuela's President Nicolas Maduro waves during his weekly broadcast "en contacto con Maduro" (In contact with Maduro) in Caracas

Those funds in recent months have helped the OPEC nation shore up its international reserves, which have steadily declined following last year's rout in oil markets.

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