Petro­bras gets $10 bil­lion Chi­nese loan in oil sup­ply deal

The Pak Banker - - COMPANIES/BOSS -

Petroleo Brasileiro SAse­cured a $10 bil­lion loan from the China De­vel­op­ment Bank as the be­lea­guered sta­te­owned oil pro­ducer en­dures the worst crude mar­ket in a gen­er­a­tion and faces more than dou­ble that amount in ma­tu­ri­ties over the next two years.

The life­line is part of a deal to sup­ply crude to the Asian coun­try, Rio de Janeiro-based Petro­bras said in a fil­ing on Fri­day. The amount of crude that will be sup­plied wasn't dis­closed.

China has in­vested in oil­rich na­tions to en­sure sup­plies to the world's big­gest crude mar­ket af­ter the U. S. Sim­i­lar deals have helped Venezuela fund its bal­loon­ing debt. Petro­bras has been mired in Brazil's worst- ever cor­rup­tion scan­dal just as the Latin Amer­i­can na­tion goes through a re­ces­sion, re­duc­ing do­mes­tic de­mand, and oil prices are 70 per­cent lower than in mid- 2014.

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