The Governments of Spain and Cuba have signed the agreement to restructure the short-term debt of the Caribbean country. The commitment has been ratified today in Havana by the Vice President of Cuba, Ricardo Cabrisas, and the Minister of Economy and Competitiveness of Spain, Luis de Guindos. The short-term debt amounts to 201.5 million euros and is derived from export credit insurance with official coverage managed by CESCE on behalf of the State.
The agreement is the result of conversations between the two presidents last July in Madrid and in which the bases were laid for a subsequent ratification. With the renegotiation of the debt and the signing of Memoranda of Understanding in commercial and R & D & I matters, the Spanish Government wants to foster economic and commercial relations between the two economies for mutual use of the opportunities that open after the new stage Politics in Cuba. It is about supporting the already wide presence of Spanish companies on the island through an appropriate framework and the boost to bilateral economic relations.
The agreement with the Cuban authorities consists in the cancellation of all the late payment interest and part of the principal of the debt; the restructuring of the payments of the residual debt to a period of 10 years; and three years of grace for the payment of principal repayment installments. The forgiveness has been formalized partly directly and partly through a Debt Conversion Program, which involves the creation of a Countervaluation Fund in Cuban Pesos to finance projects prioritized by the Cuban Government and agreed by both parties.
The agreement reached allows substantial financial relief to Cuba while contributing to deepening relations between the two nations and the joint daily work of both countries in financing priority projects for the respective authorities.