Cuba fails to pay its debt once again, begs for delay

From our Bureau of Constantly Forgiven Deadbeat Socialist Dystopias

Once again, for the millionth time –or so– Castro, Inc. is refusing to pay what it owes to those who have lent it money over and over again.

And once again their debt will probably be forgiven or greatly reduced or kicked down the road into the future, when, someday, maybe, it will finally be able to pay a tiny little fraction of what it has borrowed.

Aaaah, the benefits of being a socialist dystopia. Nearly everyone in Europe is willing to give you money you can waste, mismanage, spend on repression, or stash away in your overseas vaults.

From Granma Ooh-La-La (Agence France Presse) via Macau Business

Cuba has asked the Paris Club of major creditors for a delay in repaying its debt until 2022, citing the impact of the coronavirus pandemic on its economy, diplomatic sources told AFP on Wednesday.

In a letter sent to 14 Paris Club countries to whom Cuba owes money including Britain, Canada, France and Japan, Deputy Prime Minister Ricardo Cabrisas proposed “a moratorium for 2019, 2020 and 2021 and a return to paying in 2022,” a diplomatic source revealed.

Two other diplomats subsequently confirmed the information. All sources spoke to AFP on condition of anonymity due to the sensitive nature of the matter.

Havana missed more than $30 million in reimbursements in 2019.

In February, it committed to settling that debt by May, but the virus crisis has now put paid to those plans.

According to one source, the letter stipulates that Cuba would reassess its economic situation in 2021 to see if it could resume repayments.

The agreement with the Paris Club is crucial for Cuba, which has been subjected to punishing US sanctions since 1962.

After an easing of tensions under Barack Obama, sanctions have been ramped up under the administration of US President Donald Trump. 

In 2015, Havana renegotiated its debt with 14 Paris Club countries, wiping out $8.5 billion from an $11 billion debt, with the repayments restructured gradually until 2033.

Cuba, which has suffered from food and fuel shortages, also benefited from several other creditors writing off debt: $6 billion by China in 2011, $500 million by Mexico in 2013 and $35 billion by Russia in 2014.

Havana is increasingly reliant on the European Union, which has become its main investor with almost $3.5 billion in trade in 2018.

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Mil gracias Club de Paris… mua, mua,mua…. mil besitos… kissy, kissy….

1 thought on “Cuba fails to pay its debt once again, begs for delay”

  1. Truly, there is nothing to see here that hasn’t been seen ad nauseam. Lending Cuba money is asking to lose it, but the people responsible are not risking their personal money, so they don’t care because they don’t care about their own countries. It’s all politics, ideology and playing games. Castro, Inc. is right to use them.

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