After the loans were signed, Venezuelan President Mr Hugo Chavez defended his country growing ties with China as vital to his country development. He also dismissed criticisms by opponents who question the mounting loans which are to be paid back in oil shipments.

China has swiftly become Venezuela biggest foreign lender in recent years and had previously agreed to more than USD 32 billion in loans. Venezuelan Energy Minister Mr Rafael Ramirez had said that the new loans would increase oil production involving Chinese and Venezuelan companies from about 100,000 barrels a day to about 330,000 barrels a day.

Officials said the new loans include USD 4 billion to increase oil production as well as USD 1.5 billion for refinery projects and USD 500 million for buying oil drills and other equipment. The deals have received strong criticism from some Chavez opponents who argue that the debt isn't beneficial for Venezuela or for its state oil company Petroleos de Venezuela SA.

Mr Chavez said “I don't know how some Venezuelans can criticize this relationship with China. I think what they're doing is following instructions from the Pentagon and the White House.”

He accused opposition politicians of siding with US imperialism in criticizing his ties with China. The US government however hasn't publicly objected to Venezuela's growing trade relationship with Beijing.

Mr Chavez has sought to boost oil sales to China in the past several years while trying to diversify Venezuela oil clientele. The United States remains the top buyer of Venezuelan oil.

(Sourced from www.chinapost.com.tw)