Brazil expecting huge losses from the Cuban dictatorship’s default on $561 million in remaining loans

Brazil is the latest country to learn the hard way that like all socialists, Cuba’s Castro dictatorship is very good at spending other people’s money with no intention of ever paying it back.

Via CiberCuba (my translation):

The president of Brazil’s National Bank of Economic and Social Development (BNDES), Gustavo Montezano, predicted on Thursday that the stoppage in payments on a loan to Cuba will result in a multi-million dollar loss for the institution.

Of the $656 million the bank loaned for the construction of the Port of Mariel, Cuba will not pay the remaining $561 million balance — nearly 86% of the total loan –, the official said during a weekly live social media broadcast with President Jair Bolsonaro.

Montezano was explaining the Cuban debt situation when he was interrupted by Bolsonaro, who wanted to know about the loan guarantees made to Brazil on Cuba’s behalf to approve the loan.

“What does Cuba produce that it needs a first-class port like this? What product is it that Cuba exports? Tobacco? The people have an average salary of $20, do they have the purchasing power to buy imported goods? Why did they need to build a first-class port there? It was certainly all about ideology,” said Bolsonaro.

For those who still wonder why the U.S. shouldn’t do business with Cuba’s Castro regime, the answer is simple: The socialist dictatorship has no money and a six-decade long history of defaulting on loans. While the Castro family has hundreds of millions (if not billions) of dollars stashed away in Swiss bank accounts, the state itself is perpetually broke. The Cuban government must borrow money in order to purchase goods and the likelihood of them paying those loans back are close to zero.

The Cuban dictatorship must borrow from the U.S. in order to purchase from the U.S. The short term result will be increased sales, but the not-so-long-term result will be U.S. taxpayers getting stuck with perhaps billions of dollars in defaulted loans to the socialist regime in Havana.

I don’t know about you, but I’m not willing to have my tax dollars used to pay for defaulted loans made to a corrupt and murderous dictatorship.

1 thought on “Brazil expecting huge losses from the Cuban dictatorship’s default on $561 million in remaining loans”

  1. The very least that foreign enablers of Castro, inc. deserve is to get ripped off–but remember, the people who actually make these loans are NOT risking their own money, otherwise they’d never be so stupid.

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