(Frontera News, London, 25 August 2016) In December, Paris Club creditor nations hammered out a debt restructuring deal with the Cuban government, which forgives a large portion of monies owed from a default in 1987, while the Cuban government committed to paying off the rest over time. Observers cite these kinds of deals as evidence that the Cuban government is serious about integrating itself fully into the global economy, but some are wondering if the island’s current liquidity crisis will compel it to fall back on its debt service promise. “The Paris Club countries that struck the deal with Cuba have all been encouraging their ECAs (export credit agencies) to open up to doing more business with Cuba,” said Pavel Vidal, a former official at Cuba’s Central Bank now teaching at the Javeriana University in Cali, Colombia. “In fact, the Paris Club deal allowed for individual countries to convert part of the restructured debt into projects and equity. I think the French, Dutch and the Brits have also opened some lines. Europeans are trying to get to the party before the Americans can come in.”
Date
29 August 2016
