Britain plans to reopen Cuba export credit coverage

(Journal of Commerce, London, 26 September 2024) Cuba and Britain have agreed to reschedule $27.7 million of short-term debt owed by the communist-ruled island, opening the way for London to resume medium-term export credit cover to Havana.Britain's government-funded Export Credit Guarantee Department, which withdrew medium-term cover in 1983, said the deal was signed in London last week with Cuban central bank President Francisco Soberon. Cuba, which has more than $11 billion in foreign debt, already has such cover with France, Spain and Italy. British businesses have long complained that this put them at a disadvantage to their European competitors. UK Export Finance and the Government of Cuba are working together to identify trade opportunities, particularly related to renewable energy and tourism infrastructure. A number of UK companies have already expressed an interest in potential projects on the island. UKEF can consider short-term (less than 2 years) transactions where payments are secured by a non-confirmed Irrevocable Letter of Credit,