Speaking just hours after Venezuelan Vice “President” Elias Jaua announced that Venezuelan Dictator Hugo Chavez is undergoing “vigorous treatment” to combat his cancer, Chavez announced that it was receiving a $4 billion loan from China. He claims the loan is meant for development projects in the self-induced economically damaged country.
Adding in an additional $2 billion of its own money, one key project they wish to work on is a railway system. As he spoke, giving limited details on the loan and projects, he interrupted himself to announce that the national soccer team was in a close match. Does soccer have higher priority than economic recovery and growth in Dictator Chavez’s nation?
Russ Dallen, head of Carcas capital markets for BBO investment bank has noted that since Chavez went will and have been out of everyday public policy, markets have gone up. Since the announcement of his illness, investors have reacted positively. “The Venezuela bond market is now up 11 percent over the last three weeks,” Dallen said. This would suggest he markets prefer a Chavez absent government and improve the economy. This would make sense as Chavez has driven his nation to one of the poorest levels in South America and one of the highest inflation levels in South America.
Regardless, China continues to support the corrupt Venezuelan government and is giving them a $4 billion loan.