Venezuela Receives $5bn Funding from China

Cash-strapped Venezuela has received $5bn in financing from China, President Nicolas Maduro announced on Sunday as his country struggles with an economic crisis.

“We just received $5bn more in financing for development,” Maduro said in a radio and television address.

He did not provide further details on the loan from China, a major political and economic ally of Venezuela.

Plummeting global oil prices have caused huge distress for Venezuela, a member of Opec that relies heavily on its oil revenue to keep its lumbering command economy afloat.

Inflation in 2014 reached 68.5% in the South American country and many basic goods are in short supply.

China is Venezuela’s largest investor and the second-largest purchaser of its oil. It has been a key ally of Venezuela since Maduro’s predecessor Hugo Chavez came to power in 1999.

In January, Maduro visited Beijing and said China had agreed to more than $20bn in investments in Venezuela.

Maduro did not say if the financing announced on Sunday was part of that amount.