CARACAS Nov 7 Venezuela has repaid close to
half of $36 billion borrowed from China through
oil-for-financing agreements, Oil Minister Rafael Ramirez said
The government of President Hugo Chavez has increasingly
relied on China for financing because its borrowing costs in
international capital markets are among the highest in the
"We've received $36 billion through credits with China ...
and of that, we've paid $17.9 billion," Ramirez said during a
A 2007 agreement allowed the Andean nation to borrow $4
billion at a time from China Development Bank, which state oil
company PDVSA pays off in oil and fuel. The agreement was
expanded this year to $8 billion.
A separate agreement provided a $20 billion credit line,
also repayable in oil. Part of those funds are used to buy goods
and services from Chinese businesses.
Venezuela and PDVSA last year issued a combined total of
almost $18 billion in global bonds. Nearly all of this year's
government debt issuance has been local currency bonds sold in
the domestic market.