From our Bureau of Dark Horizons for Deadbeat Tyrannies
Surprise! A left-leaning news network has posted a very clear summary on its website about Castro, Inc.’s upcoming trial in London over the issue of unpaid debt. And this summary is much clearer than any that Tres Fotutos has been able to provide to Babalu’s readers.
This trial concerns $72 million, which is only a small sliver of Castro, Inc.’s $7 BILLION in outstanding loans from the 1970’s and 80’s, but if this British court orders Castrogonia to pay and it fails to do so, the consequences could be catastrophic for the 64-year-old totalitarian dictatorship.
And, ironically, that $7 billion borrowed so long ago, in turn, is only a fraction of Castro, Inc.’s current outstanding debt, which– due to many loan forgiveness deals– is only a fraction of what it has borrowed and refused to pay over the past six decades.
When one considers how much money has been lent to Castro, Inc. since 1959 despite its chronic refusal or inability to pay back what it has borrowed, it’s easy to be astounded. How can this happen? Is there any other communist nation on earth that has received so much aid from capitalist nations? Probably not. The debt forgiven since ’59 should be considered direct aid, since it must amount to hundreds of billions that Castro, Inc. got to spend without ever paying it back. The question then becomes why, why, why?
And one answer that comes to mind is that Castro, Inc., sold its soul to the devil back in 1959, much like Doctor Faustus, violinist Paganini, blues legend Robert Johnson, and some less-well-known people whose skills or good fortune seemed too good to be of earthly origin,
Accusations of bribery, an imprisoned Cuban bank official and Interpol all feature in a high-stakes case against the Cuban government set to start Monday in the United Kingdom’s High Court.
The legal battle is over a portion of Cuba’s unpaid commercial debt dating back to the 1980s. If Cuba loses, it could ultimately cost the island nation billions in long overdue payments — and, in a worst-case scenario, lead to the seizure of government-owned assets such as oil tankers and in-bound wire transfers.
Investment fund CRF1, originally called the Cuba Recovery Fund, is suing Cuba for roughly $72 million in principal and past due interest on two loans it now owns. They were originally granted to the Caribbean island nation by European commercial banks in the 1980s, and were denominated in German Deutschmarks, a currency that no longer exists.
This is the first time Cuba is facing legal action for what is estimated to be about $7 billion in outstanding commercial loans from the 1970s and 1980s. If CRF wins this case on this small slice of that debt, it could lead to further lawsuits from creditors with claims rising into the billions. Any unpaid judgments could lead to asset seizures.
If they don’t reach a deal, Cuba could then face yet another court fight over whether it finally has to pay. If CRF is successful, it could lead to many other creditors filing suit, with claims rising into the billions.
Cuba would be unable to borrow in the international capital markets until its debts are settled.
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