China pledged billions of dollars of financing to Venezuela and Ecuador, two South American energy exporters battered by falling oil prices, as Beijing moved to secure resources and allies in the region.Lebensraum and hot chicas
China has increased its diplomatic clout throughout Latin America by extending over $100 billion in credit to the region since 2005, according to figures from Boston University’s Global Economic Governance Initiative.
which will never get paid back.
They're buying on the cheap...
Beijing has become the biggest foreign financier of both Venezuela and Ecuador, two oil-rich, leftist allies eager to help counter U.S. sway in the region.
Following a meeting with Chinese President Xi Jinping, his Venezuelan counterpart Nicolás Maduro announced bilateral accords that would bring $20 billion in new investment to Venezuela. Ecuador said it secured $7.5 billion in financing.
Both Mr. Maduro and his Ecuadorian counterpart, Rafael Correa, were in Beijing along with officials from various Latin American nations to take part in a regional gathering.
Both Latin countries, highly dependent on oil exports to pay for heavy public spending, were in dire need of a helping hand as crude prices tumble to less than half of their level from several months ago. A barrel of oil sold for about $50 on Wednesday.
Oops
Last week, Venezuela’s central bank released long-delayed figures, revealing the country entered a recession in 2014.
and if you can't believe VZ's Central Bank...well, you can't, actually. It was worse
Venezuela needs oil to average around $117.50 a barrel to balance its 2015 budget, according to Deutsche Bank estimates.
"buy our heavy sulferous crap! It's a bargain at twice the price of everyone else's oil!"
In Ecuador, officials have reported a slowing economy, with growth of 3.4% in the third quarter, down from 5.6% in the July-through-September period in 2013.