China to lend Venezuela $5 billion

Venezuelan President Nicolas Maduro (L) and China’s President Xi Jinping. File photo: teleSUR

By Caribbean News Now contributor

BEIJING, China — China has agreed to extend a $5 billion credit line to cash-strapped Venezuela, as President Nicolas Maduro headed to Beijing, Bloomberg News reported.

Venezuelan finance minister, Simon Zerpa, told Bloomberg that Venezuela would repay the loan with either cash or oil. The two countries were also expected to sign what Zerpa described as a strategic alliance on gold mining.

Maduro is seeking additional Chinese support to weather an economic meltdown since oil prices collapsed nearly four years ago that has led to civil unrest and the collapse of the country’s currency. Maduro has halted most payments on Venezuela’s foreign debt…

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