50% of the financing that will grant China will be in yuanes

The financing that will grant the Development bank of China will be of $20 millardos, 50% will be in dollars (AP/archivo)

Although the Venezuelan barrel is over the 70 dollars, the Government continues increased his indebtedness, because he will receive from the Development bank of China a first financing by 20 millardos of dollars.

According to official notices corresponding to the company/signature in the agreement that was realised weekend the past, 50% of the credit will be in dollars and 50% rest in yuanes.

The Development bank of China will grant 10 millardos of dollars and 70 millardos of yuanes (that are equivalent to 10.2 millardos of dollars).

The bottom in yuanes will be a pilot test to internationalize the Chinese currency, indicated the experts of the Asian nation, who added that given to the oil potential of Venezuela the agreement he can elevate the position of the Chinese currency in the oil sector.

The authorities have not given to majors details on the financing in the Chinese currency. Consulted analysts indicate that the measurement can have several interpretations, one of them is that when being received the loan in yuanes will have to only buy goods of that country and aims that otherwise, will be necessary to spend dollars for the acquisition of yuanes, which would imply to use the reserves.

In the year the 2006 authorities contemplated the possibility of diversifying the investments of the reserves, and at that time the possibility was analyzed of placing part in yuanes. In the last reform to the law of the emitting institute a change in the composition became of the assets of the being and it settled down that “the reserves could be represented in any assets that are described like reserve, according to criteria recognized internationally”.

Additional

President Hugo Chavez expressed that financing of 20 millardos of dollars creates a “very heavy bottom” and is additional to the resources that came giving, that is to say, the placed ones at heart Chinese, that were created in 2008.

That mechanism in a lapse of two years received resources by 12 millardos of dollars. Of that amount, 8 millardos of dollars were loans of the Development bank of China and 4 millardos of dollars were the contributions that realised the Venezuelan Government through Bandes and the Fonden.

Although it has been indicated that those resources have been destined to projects of energy, land, infrastructure, production and atmosphere, his execution has not been notified.

Before the decision of the Central bank of Venezuela to centralize the exchange operations, in exchange agreement 17 it was notified that the currency purchases that the BCV of the Chinese Bottom realises will carry out to the parity of Versus 4,28. Analysts indicate that this is a way to maximize the flow of box of that mechanism. Part of the projects that finance with the bottom needs to realise payments in local currency.

Before indicated by the authorities, this loan of 20 millardos of dollars it would be first, which implies that more credits will be received.

In January of this year already Petroleums of Venezuela realised managements with the Development bank of China and the Bank of the Spirit Santo of Portugal for the request of a line of credit by 1.5 millardos of dollars, resources that would be destined to the investments of state the oil one. MAH