LatinNews Daily Report - 29 August 2012

ECONOMY  | More Chinese loans?  The China-Venezuela bilateral cooperation fund has received a fresh injection of US$6.0bn for works and projects in Venezuela, according to President Hugo Chávez. Of the total, US$4.0bn will be provided by China’s development bank, with the remaining US$2.0bn transferred from Venezuela’s National Development Fund (Fonden), an off-budget oil revenue windfall account. According to a 28 August statement from the foreign ministry in Caracas, the fresh injection was agreed on 10 August.  Back in February China also agreed a US$4.0bn injection into the fund; it is unclear if this latest announcement refers to an additional amount or is simply repeated news of the February loan – President Chávez has a habit of rehashing such statements for political effect. One thing is clear – Venezuela is in hoc to China for some US$40bn and climbing. According to Energy Minister Rafael Ramírez, the state oil company Petróleos de Venezuela (Pdvsa) now sends 640,000 barrels of oil/day to China, of which 264,000b/d is in payment for the loans.

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