China refuse to grant further loan to Venezuela

Venezuela is unable to secure loan from China anymore.China is cutting off new loans to the Latin American nation after granting billions worth of loans in the past. It is worst time for Venezuela, which are facing an economic and humanitarian crisis .
"China is not interested any more in loaning more money to Venezuela," says Margaret Myers, a director at Inter-American Dialogue, a Washington research group that tracks loans between China and Latin America.

Since 2007, China's state banks loaned Venezuela $60 billion, according to the Inter-American Dialogue. That's more that it loaned to any other Latin American country. China is considered Venezuela's
most important creditor. Of that, Venezuela still owes China approximately $20 billion, experts say, and there's no sign that it
can pay back the amount amid its crisis.

Venezuela pays back the vast majority of its loans to
China with oil shipments. Last year, Venezuela's state-run oil company, PDVSA, shipped about 579,000 barrels of oil per day to China, according to makethe company's financial audit.
Related: Venezuelans fly to U.S. to buy toilet paper
But this year, Venezuela -- which has the world's
largest oil reserves -- has seen oil production crash
to a 13-year low. Some of its service providers, such
as Schlumberger ( ), have dramatically lowered
operations due to unpaid bills from the Venezuelan
government.
Socialist president Nicolas Maduro has led a regime
that mismanaged Venezuela's resources and
pushed the economy into a crisis, experts say.
China has now run out of patience.
"The Chinese have allowed the Venezuelans to be
stupid," says Derek Scissors, a resident scholar at
the American Enterprise Institute who tracks
Chinese investment around the world. "The Chinese
don't want to allow the Venezuelans to be stupid
anymore."
China's Foreign Ministry did not respond to a request
for comment. Venezuela's finance ministry did not
respond either.
Like the government, Chinese companies too are
losing interest interest in Venezuela. Since 2010, Chinese companies have invested $2.5 billion a year on average in projects in Venezuela. In the first half of this year, they only invested $300 million, according to AEI.

Amid widespread protests for Maduro to resign, his government must now push on without China's help. "In the specific case of Venezuela, it's true that [the Chinese] are not willing to continue acting as the lender of last resort," says Mauro Roca, a Latin American economist at Goldman Sachs. "The country is already in a deep crisis, but things can unravel even more."