Rich but rash
To challenge the World Bank and the IMF, China will have to imitate them
XI JINPING, China’s president, was chummy in public when he met Nicolás Maduro in Beijing in early January (pictured), praising his Venezuelan counterpart as a “good friend of the Chinese people”. Behind closed doors, negotiations must have been far more tense. Chinese banks have lent $50 billion to Venezuela since 2007. With its economy in a deep recession, Venezuela’s ability to repay these debts is in grave doubt. Investors trading Venezuelan bonds would see default as a virtual inevitability but for China’s involvement. Having already lent so much to Venezuela, will it give Mr Maduro yet more to prevent his country from going over the edge?
This article appeared in the Finance & economics section of the print edition under the headline "Rich but rash"
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