Active Mixed AidData Chinese Aid

CDB offers $5 billion line of credit for oil sector development activities

$5M USD

Funder	China Development Bank (CDB)
Recipient Organization	Government of Venezuela
Country	Venezuela
Start Date	Sep 13, 2018
End Date	Jun 08, 2028
Duration	3,556 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`58395`

Grant Description

CDB offers $5 billion line of credit for oil sector development activities On September 13, 2018, during President Maduro's visit to Beijing, China Development Bank (CDB) agreed in principle to provide a $5 billion line of credit to the Government of Venezuela for invest in oil sector development activities.

At the time, the Venezuelan Minister of Finance said that any borrowings under the line of credit would be repaid in either cash or oil.

According to an EI Universal article published in July 2018, the Venezuelan Minister of Finance characterized the arrangement with CDB as a "special credit...for direct investment projects in production.” An official from Beijing also indicated the two sides would sign ‘3 or 4 new financing [agreements]...that will have a very positive impact on the increase in production of the Orinoco Oil Belt and in other PDVSA production areas’ in the ‘coming weeks.’ Venezuelan government officials subsequently met with CDB officials in October 2018 and November 2018, but its is unclear if any financing agreements were finalized.

📋 Staff Comments

1. A $250 million CDB loan with PDVSA was finalized in July 2018 (as captured via Project ID #69282). However, it is unclear if this loan is related to the the $5 billion line of credit. This issue warrants further investigation.

📚 Sources & References

CAUTIOUS CAPITAL: CHINESE DEVELOPMENT FINANCE IN LAC, 2018
El arte de la deuda: China, más cerca del default que de nuevo financiamiento
China to Lend Venezuela $5 Billion as Maduro Visits Beijing
China to lend Venezuela $5 billion
Venezuela hands China more oil presence, but no mention of new funds
China otorgará crédito por $5.000 millones a Venezuela
委内瑞拉石油交易实现人民币代替美元计价
CHINA DEVELOPMENT BANK AND VENEZUELA JOIN FORCES IN ORDER TO INCREASE OIL PRODUCTION
Venezuela and China agree $4.25bn in 'oil investments'
Venezuela to bump China oil exports to one million barrels a day
PDVSA CONSOLIDATES INVESTMENT PROJECTS WITH CHINA DEVELOPMENT BANK
Consolidated Financial Statements December 31, 2016 With Independent Auditors’ Report Thereon
Vice President Rodríguez holds a strategic meeting with representatives of the China Development Bank (CDB)
GOBIERNO SE REUNIÓ CON REPRESENTANTES DEL BANCO DE DESARROLLO DE CHINA
Banco de Desarrollo de China y Venezuela acuerdan financiamiento para aumentar producción petrolera
Vicepresidenta Ejecutiva sostuvo reunión con representante del Banco de Desarrollo de China
Ministro Simón Zerpa sostuvo encuentro con representante del Banco de Desarrollo de China
习近平同委内瑞拉总统马杜罗举行会谈 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Venezuela

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