Cash-strapped Venezuela has received a new pledge of $5 billion in financing from China, President Nicolas Maduro announced Sunday as his country struggles with an economic crisis.
Plummeting global oil prices have caused huge distress for Venezuela, a member of OPEC that relies heavily on its oil revenue to keep its lumbering command economy afloat.
Howevr the bottom line on Venezuela’s collapse is socialist mismanagement of the economy.
Inflation in 2014 reached 68.5 percent in the South American country and many basic goods are in short supply.
China is Venezuela’s largest investor and the second-largest purchaser of its oil. It has been a key ally of Venezuela since Maduro’s predecessor Hugo Chavez came to power in 1999.
In January, Maduro visited Beijing and said China had agreed to more than $20 billion in investments in Venezuela.