China cuts off Venezuela line of credit.

[GatoGordo]

China closes the credit tap to Venezuela
The country did not receive funds from Chinese institutional banks last year, which note with concern the deterioration of its economic and political crisis

Beijing 2 JUN 2018 - 18:55 CEST
translated from Spanish



China has abruptly ceased the granting of loans to Venezuela coinciding with the deterioration of the economic and political crisis of the Latin American country. For the first time in practically a decade, the Chinese institutional banks did not lend new credit to Caracas last year or until 2018, an indicator that, according to the sources consulted, responds to the growing concern of the Asian giant over the sustainability of its investments and the capacity of the Government of Nicolás Maduro to return the loan.


Beijing, through the China Development Bank (CDB) and the Eximbank , has granted Venezuela loans valued at 62.2 billion dollars between 2005 and 2016, according to data from the annual report of the Inter-American Dialogue study center, becoming the main creditor of a country that has seen its access to international financial markets closed. Caracas, which promised to return the loans in oil shipments, has encountered serious difficulties in meeting its obligations in recent years in the face of falling oil prices and the declining production of its state oil company, Petróleos de Venezuela ( PDVSA).

The Ministry of Foreign Affairs of China, in a statement, affirms that the financial cooperation between both countries "is completely legal" and "works without problems". However, a senior official of the CBD who preferred to remain anonymous in light of the sensitivity of the matter assured this newspaper that "we are following with concern everything that is happening in Venezuela and we are acting in accordance with the situation."

The entity in which it works has rapidly reduced its exposure to the country: 5 billion dollars loaned in 2015, 2.2 billion dollars in 2016 and zero in 2017. Neither have new transactions transcended so far this year, but experts doubt that there are. "It will be difficult to send more money to Venezuela unless things change a lot," explains a manager familiar with the operations of the China-Latin America Cooperation Fund.

-snip-

https://elpais.com/internacional/2018/05/02/actualidad/1525228067_970906.html

The Chinese see the writing on the wall. Chavismo, while a thorn in the side of Uncle Sam, is utterly corrupt, and even countries with deep pockets and big resentments towards the US like China won't keep throwing money down the rat hole.

[comradebillyboy]

1. So much for Socialist Solidarity.

Don't forget the People's Republic of China is still ruled by the Chinese Communist Party.