China's $7 billion to $14 billion Petrobras loan may help pay most 2016 debt

China's $7 billion to $14 billion Petrobras loan may help pay most 2016 debt

RIO DE JANEIRO- A loan announced Friday from China to Brazil's Petrobras is for $5 billion (S$7 billion) to $ 10 billion, can be paid in cash or oil at China's request and may help pay the bulk of the $12 billion in debt the state-run oil company must repay this year, a source involved in debt talks told Reuters late Friday.

The loan from the China Development Bank was first agreed to in early 2015, and when added to a $ 5 billion CDB loan made in 2009, increases the bank's debt exposure to Petroleo Brasileiro SA as Petrobras is formally known, to as much as $15 billion the source said.

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