China is cutting off cash to Venezuela

[FrodosPet]

China is cutting off cash to Venezuela

Venezuela can't pluck leaves off China's money tree anymore.

http://money.cnn.com/2016/09/30/news/economy/china-venezuela-finance/index.html?iid=ob_article_footer

by Patrick Gillespie | September 30, 2016: 12:52 PM ET

After pouring billions into Venezuela over the last decade, China is cutting off new loans to the Latin American nation. It's a major reversal of relations between the two nations, experts say. It also comes at the worst time for Venezuela, which is spiraling into an economic and humanitarian crisis.

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Since 2007, China's state banks loaned Venezuela $60 billion, according to the Inter-American Dialogue. That's more that it loaned to any other Latin American country. China is considered Venezuela's most important creditor.
Of that, Venezuela still owes China approximately $20 billion, experts say, and there's no sign that it can pay back the amount amid its crisis.

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But this year, Venezuela -- which has the world's largest oil reserves -- has seen oil production crash to a 13-year low. Some of its service providers, such as Schlumberger (SLB), have dramatically lowered operations due to unpaid bills from the Venezuelan government.

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[dlwickham]

1. this is major

I can't see how the government survives except by putting the tanks in the streets