Banking

Bolivia approves $60m loan with China

(Xinhua)
Updated: 2009-11-19 11:47

The Bolivian government on Wednesday approved a supreme decree authorizing a contract with the People's Bank of China, China's central bank for a $60 million loan, which will be used to improve Bolivia's hydrocarbons sector.

Bolivian Hydrocarbons Minister Oscar Coca told a press conference in the Quemado Palace that the sum of money will go to the extension of domestic gas networks and the purchase of two drilling rigs for state-run oil company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB).

The loan is for a term of 20 years, with an annual interest rate of 2 percent, he said, adding that a part of the loan will be used to finish 100,000 domestic gas networks, and $31 million will go to purchasing two drilling rigs.

Coca also urged the legislative to approve the credit request.

"The legal measure to request this credit was approved by the Cabinet and now we are waiting for the Senate to make it viable as soon as possible," he said.

Bolivia considers China as a strategic cooperation partner. China has offered donations and loans to Bolivia for its social development projects.