Venezuela and China Made Changes on Oil Agreement

It is reported by the Foreign Media on Tuesday (November 25) that the Venezuela and China made changes on oil-for-loan agreement which signed on the same day. But the terms of the agreement were not changed in essence.
 
Oil-for-loan financing mechanism was originally founded by the President Hugo Chavez of Venezuela who was deceased. Under the agreement, Venezuela will repay the loan by exporting oil and fuel to China.
 
Under the original agreement, Venezuelan will export more quantity of crude oil than that they required repaying to China and China will repay the excessive money to Venezuela later.
 
Last month, the agreement between the two countries has been modified. It canceled the term of requirement that Venezuela should export at least 33 million barrels per day of crude oil to China. And Venezuela should only export the oil according to the maturing loans.
 
It was said that the two sides also raised the prices of a barrel of crude oil. The market price is $ 50 per barrel in the original agreement that negotiated between the two countries before, but the new reference price is not known currently.
 
According to the revised agreement, the two sides also canceled a three-year repayment period for one of the three loans, but the other two repayment period of the loan is still 3 years.
 
Xi Jinping, the Chinese President, has signed a four-billion-dollar oil-for-loan agreement during his one-day visit to Venezuela. The loan was granted to the Joint Chinese-Venezuela Fund. The fund focuses on infrastructure and economic development in Venezuela. Venezuelan officials said the country would export about 100 thousand barrels of crude oil and refined oil to China to repay the loan.