Surprise! Castro, Inc. owes over $1 billion in unpaid commercial debt

Just when you thought all the debt had already been forgiven, here comes this surprise!

It seems that some delinquent loans got “lost” at the bottom of King Raul’s drawer, so to speak.

So, once again, one of the world’s worst deadbeat nations is in the news for doing what it does best: stealing what belongs to others.

This article should be required reading for every farmer and lobbyist in the U.S. who is pressing for an end to the so-called embargo.

As is well known by “those people” in South Florida — and some other locations — the “embargo” forces Castro, Inc. to pay cash for all its purchases, thereby protecting those Americans who sell it their stuff.

Maybe this is why King Raul has opened that new Institute for the Study of My Brother’s Lunatic Obsessions, so he can pay back the loans with moringa.

From CNBC (a.k.a Castro Needs Better Coverage network)

A creditors group wants Cuba to begin talks on more than $1 billion in unpaid commercial debt from the 1980s — a key hurdle if the country ever hopes to attract large-scale foreign investment.

Signaling the seriousness of its intent, the Cuban London Club creditors committee has retained high-powered American attorney Lee Buchheit of the Cleary Gottlieb law firm.

Buchheit, who is well known for international debt restructurings such as the one for Greece, said Cuba “will need to clean those Augean stables” before major investors will consider putting money into the island.

Julian Adams of Adelante Asset Management, head of the ad hoc London Club Committee of investors who own defaulted Cuban debt, said creditors prefer a negotiated settlement. However, if that does not happen, they could resort to the courts. Measures they could pursue include seizing assets and interrupting Cuba’s international payments and trade.

Adams said the committee put “a good faith offer” on the table in January in an effort to resolve the long-standing issue, which prevents Cuba’s re-emergence into international capital markets. The island has been given 50 days from Feb. 5 to respond.

A representative of Raul Castro’s government did not respond to a CNBC request for comment.

Cuba accumulated billions in unpaid loans and debts under the late Fidel Castro. Mexico, Canada, Australia, France, Italy, Japan and in particular the former Soviet Union, all lent millions, if not billions to the Castro regime in the ’70s and ’80s. Much of it went unpaid for four decades.

About five years ago, the Cuban government began steadily restructuring those loans with creditor countries and received large debt forgiveness. Mexico wrote down 70 percent of nearly half a billion dollars in debt in November 2013. The same year, Russia forgave 90 percent of the $32 billion it said Cuba owed for financial support provided by the then-Soviet Union during the Cold War.

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1 thought on “Surprise! Castro, Inc. owes over $1 billion in unpaid commercial debt”

  1. Castro, Inc. will always find “suckers,” the kind who don’t really care about being paid back because the money lost is no skin off their noses, meaning it was never their own money.

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