| Abstract |
In 2009 and 2010, China Development Bank (CDB) extended lines of credit totaling almost $65 billion to energy companies and government entities in Brazil, Ecuador, Russia, Turkmenistan and Venezuela. The loans are secured by revenue earned from the sale of oil at market prices to Chinese national oil companies (NOCs), except in the case of Turkmenistan, which is delivering natural gas at undisclosed prices. These energy-backed loans (EBLs) are distinguished by their large size (up to $20.6 billion), long terms (up to twenty years), the relatively short period of time in which they occurred (over a period of less than two years), and their availability at a time when many companies were cancelling or postponing major investments in oil and natural gas development because of cash flow problems and virtually no other financial institutions were willing to lend such large amounts of capital for such long terms. |
