GLOBAL ECONOMY

Venezuela says China has agreed on $5 billion loan to boost oil production

Chinese President Xi Jinping, right, walks with Venezuela's President Nicolas Maduro before their meeting at the Great Hall of the People in Beijing, China, Tuesday, Sept. 1, 2015. (Parker Song/Pool Photo via AP)

Chinese President Xi Jinping, right, walks with Venezuela's President Nicolas Maduro before their meeting at the Great Hall of the People in Beijing, China, Tuesday, Sept. 1, 2015. (Parker Song/Pool Photo via AP)

Venezuelan President Nicolas Maduro says China has agreed to provide a $5 billion loan to boost oil production.

Maduro said Tuesday night during a speech broadcast from Beijing that the loan would be paid back in oil shipments.

China is Venezuela's largest creditor and has loaned it more than $40 billion during the last five years, much of which has been paid back with oil. Venezuela sells China more than 600,000 barrels of oil a day.

The socialist South American country is struggling with a recession and a cash crunch brought about in part by a steep drop in the price of oil, which makes up 95 percent of Venezuela's export earnings.

China has continued to loan Venezuela money as the country's economy struggles and some fear default.

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It is not clear if the money is new financing or part of a deal announced earlier.

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