OREANDA-NEWS. June 30, 2011. China Development Bank Corp, which was converted from a policy lender into a stockholding commercial bank in 2008, and the government of Ecuador have inked a loan agreement worth USD 2 billion, sources reported.

 The cooperation is in line with China's strategy to deepen its financial ties with the South American nation.

 China, which is seeking to secure energy supplies, has become the biggest loan provider of Ecuador, after the latter defaulted on its global debts in 2008.

 At present, China's loans to Ecuador surpassed USD 6 billion, including USD 1.7 billion to finance 85% of Coca-Codo Sinclair, a hydropower plant to be built by China's Sinohydro Corp in Ecuador. The hydropower plant will supply around 75% of Ecuador's energy demand.

 Ecuador's Finance Minister Patricio Rivera said two weeks ago that the loan will be for eight years, with an interest rate of 6.9%.

 Some insiders close to the situation said that the USD 2-billion loan is related to the sale of 39,000 barrels per day of crude and fuel oil over two years to PetroChina Co Ltd<601857><0857>, China's largest oil producer.

 However, Marco Calvopina, general manager of Ecuador's state-owned oil company Petroecuador, said that the company is in talks on the sale of crude oil and fuel oil to PetroChina, but the negotiation is not connected with the USD 2-billion loan.