Venezuela says China offers $20 bln financing

* Money part of increased bilateral cooperation

* Chavez had been expecting Hu Jintao

CARACAS, April 17 (BestGrowthStock) – Venezuelan President Hugo
Chavez said on Saturday that China was providing his nation
with a long-term, $20 billion financing plan for major projects
in the South American oil-exporter.

“China is going to give financing to Venezuela, to the
Venezuelan people, to the Bolivarian Revolution … over the
long-term and in large volume of some $20 billion,” Chavez said
at a signing ceremony in Caracas.

The Venezuelan leader said the deal was on top of an
existing $12 billion Chinese-Venezuelan investment fund in
which Beijing deposits money in return for forward sales of
oil.

He did not specify what areas the financing were for but
China is increasingly involved in Venezuela’s oil, electricity,
food, construction and technology sectors.

Chavez had been due to host President Hu Jintao this
weekend but the Chinese leader cut short his Latin American
visit due to an earthquake at home.

As well as signing the financing agreement, Chavez and
Chinese officials penned another six accords covering
electricity and oil projects, including ratification of a joint
venture to develop a block in the Orinoco crude belt.

The Junin 4 block is expected to require about $16 billion
investment over three years and eventually produce more than
400,000 barrels per day.

Stock Market Investing

(Reporting by Eyanir Chinea; Writing by Andrew Cawthorne;
Editing by Bill Trott)

Venezuela says China offers $20 bln financing