RIO DE JANEIRO: A Chinese loan of up to $10 billion to Brazil’s Petrobras could pay nearly all its $12 billion in maturing obligations in 2016, easing pressure on the oil company as it struggles to fix its troubled finances by selling assets and slashing spending.
The credit line to Petroleo Brasileiro SA, as state-run Petrobras is formally known, is from China Development Bank and was announced on Friday. It is for $5 billion to $10 billion and can be repaid in cash or oil at China’s request, a source involved in debt talks told Reuters.
Petrobras has about $130 billion in obligations, making it the world’s most indebted oil producer and one of the world’s most indebted non-financial companies.
“The loan increases China’s commi…
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