China has agreed to provide Venezuela with a US$4 billion credit line to be repaid with oil shipments, Reuters reported.
Venezuela, an OPEC member, will repay the credit with shipments of about 100,000 bpd of crude oil and other products. Other terms of the deal have not been publicized.
The deal signed Monday will provide funds to the Joint Chinese-Venezuelan Fund.
The money will be used to build infrastructure and bolster economic development in Venezuela, the story said.
PDVSA, the state-owned Venezuelan oil and natural gas company, told Reuters the country is currently sending 524,000 bpd to China and expects to be sending 1 million bpd by 2016.
China EXIM bank also signed a US$1 billion loan agreement with PDVSA for mineral exportation, the creation of a new cement factory and the purchase 1,500 Chinese buses by Venezeula, Reuters reports.