The Chinese government confirmed on Tuesday that it granted two loans worth more than USD 20 billion to the government of President Hugo Chávez and that both countries signed oil and energy agreements.
"We hope China and Venezuela to make joint efforts to implement these agreements and take bilateral relations to a higher level," said Chinese Foreign Ministry spokeswoman Jiang Yu, reported Efe.
On Saturday April 17, the Chinese government and a corporate delegation signed seven bilateral cooperation agreements with Venezuela, Jiang said, including a "framework agreement on financing" under which the China Development Bank (CDB) will provide a USD 10 billion loan and other credit amounting to 70 billion Yuan (USD 10.25 billion).
According to Chinese media, the agreements were signed in presence of President Hugo Chávez and a Chinese delegation led by Zhang Guobao, the director of the National Energy Administration, as President Hu Jintao canceled a visit to several Latin American countries due to the Qinghai earthquake.
The fund in Yuan will be a pilot program to internationalize the Chinese currency, Chinese experts say. Given Venezuela's oil potential, the agreement could consolidate the position of the Chinese currency in the oil sector.
"We have signed many agreements on the oil and electrical sectors," the Chinese spokeswoman said.
With the agreements signed on Saturday, China ensures part of Venezuelan oil for its voracious economy, and Venezuela gets huge cash inflow at a time of falling oil prices.
Translated by Gerardo Cárdenas
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.