Cuba Prioritizes Foreign Debt Despite Hard Year

By Aurelio Pedroso  (Progreso Semanal)

HAVANA TIMES – Cuban banking authorities have just paid US $2.6 billion in debt owed to the Paris Club, that conglomerate of 14 wealthy countries.

The news has not been given by Cuba’s official media, perhaps out of modesty, which is what I can think of right now. It was instead the Reuters news agency that launched it around the world. And it seems that is true because otherwise a denial would have been issued by the Central Bank.

The payment represents a great effort on the one hand; and on the other, the seriousness and punctuality (occurred about 20 days before the expiration date) demonstrated by Cuba, precisely at a time when the country’s coffers are not in such a happy state. The payment occurs at a time of lesser imports of Venezuelan oil combined with the low amount of Cuban export products, and to top it all off, the nightmare of hurricane Irma, whose effects will be present during 2018.

Under these conditions, our commitments to Australia, Austria, Belgium, Canada, Denmark, Finland, France, the United Kingdom, Italy, Japan, the Netherlands, Spain, Sweden and Switzerland have been honored.

This agreement with the Paris Club was signed in 2015 and so far the payments have been on time, after we were forgiven the figure of $8.5 billion.

We will start a new year with the belt tighter with forecasts that don’t exactly bring a smile to the day to day. We’ll see what our economists and analysts say as we reach the time to summarize this mischievous year.

23 thoughts on “Cuba Prioritizes Foreign Debt Despite Hard Year

  • October 28, 2017 at 5:50 pm

    I respectfully propose that the idea of “perfect” should not be used in any of our conversations. Only one perfect person has ever walked the earth.
    Its all relative my friend. Better to put them on a spectrum.

  • October 28, 2017 at 11:07 am

    Nice semantic diversion.
    Let me put into your persective….no principle difference between Obama and Trump?
    By the way, Dan. It’s “principle” not “principal.”

  • October 28, 2017 at 11:04 am

    “In Cuba they have elections.”
    Thank you. I still can’t stop laughing.

  • October 28, 2017 at 10:59 am

    How many days’ work does it take a Cuban – on average – to earn the equivalent of $6?

  • October 28, 2017 at 10:45 am

    Thank you for clarification as I could not reconcile above article $$s with Cuba Paris Club $$s agreement. So my take away is Cuba had to repay roughly $60M annually over 18 years.

  • October 25, 2017 at 2:21 pm

    In Cuba they have elections. Not the two party process that you have in the USA. What they have in Cuba is, to my mind, an imperfect process.
    In the USA they have elections. I would venture to say that it is also an imperfect process.
    Now if you are arguing that the US electoral process is a better, less imperfect or a more democratic process than they have in Cuba, I wouldn’t necessarily altogether disagree.
    But neither process is perfect.
    As for my (supposed??) countryman Winston Churchill….
    He had serious faults too.

  • October 25, 2017 at 9:08 am

    I see no argument from you as to temporary stewardship.
    You do however, express your dislike of ELECTED officials, which is allowed and encouraged in my country. Not so in Cuba. Whatever you or I feel about Trump – which is more similar than not – he was still (temporarily) elected by the citizens of the US and will be shown the door by the same.
    To quote one of your supposed countrymen: “Democracy is the worst form of government, except for all the others.”

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