In an arrangement defined as historic, the Paris Club accepted to write off a substantial part of the debt of more than 11 billion dollars Cuba has owed the members of this group of creditor countries and refinance the rest of the debts. The news, announced on December 14, puts an end to the negotiations both sides had been maintaining to settle a standstill in payments of almost three decades.
“This agreement definitively resolves the question of Cuba’s mid- and long-term debt, which had not been paid since the 1980s,” the Finances Ministry of France stated in a communiqué. France is the country that led the negotiations as the principal creditor.
Out of the total debt of 11.1 billion dollars, the Paris Club exempted Cuba from the payment of the interests accumulated during the period of non-payment, which amounted to 8.5 billion dollars. In exchange, Havana has made the commitment to pay the 2.6 billion dollars of the principal in a period of 18 years.
The French government, in particular, annulled some four billion dollars for outstanding interests of the debts, and which represented the major part of what the Caribbean nation owed this country. The agreement implies that of the 470 million Havana will pay, 230 million will be invested in development projects in Cuba, the Finances Ministry reported.
The Paris Club celebrated the progress achieved by the largest of the Caribbean islands in organising its foreign finances. “This agreement levels the path for a new era in relations between Cuba and the international financial community,” French Finances MinisterMichel Sapin said in the communiqué.
Spain, Cuba’s second largest creditor in the group, decided to write off 1.8 billion dollars of the accumulated interests, but will charge the 590.7 million dollars of the original debt.
The other Paris Club members are Australia, Austria, Belgium, Canada, Denmark, Finland, Switzerland and United Kingdom.
The meeting to seal the agreement took place from December 10 to 12 in the French capital, but was preceded by intense negotiations, including a visit to Havana last March by the president of the Paris Club, Bruno Bézard, to study the renegotiation of the debt and the outstanding payments by Cuba with several countries of that group of creditors.
Under the presidency of Raúl Castro, the Cuban government has set itself the task of organising its external finances with the aim of gaining international credibility. The recent agreement gives continuity to previous restructurings of this Caribbean nation’s debts with other countries, like China, Mexico, Japan and Russia. (2015)
Normas para comentar:
- Los comentarios deben estar relacionados con el tema propuesto en el artículo.
- Los comentarios deben basarse en el respeto a los criterios.
- No se admitirán ofensas, frases vulgares ni palabras obscenas.
- Nos reservamos el derecho de no publicar los comentarios que incumplan con las normas de este sitio.