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The Cuban government reached a new agreement to refinance its debt with the Paris Club, for which it expressed gratitude for "the understanding of the difficult economic situation" the island is experiencing.
The agreement was signed in Havana by Vice Prime Minister Ricardo Cabrisas Ruiz and Bertrand Dumont, president of the Paris Club, reported the regime in Havana on X.
"Cuba thanks member countries for their understanding of the difficult economic situation it is facing," the post notes, alongside a photo of representatives from both sides.
Despite economic problems and international sanctions, Cuba has maintained its commitment to meet its obligations, albeit with revised deadlines.
Since 2023, Cuba has been trying to renegotiate the debt, claiming that it needed a new extension due to an "extraordinarily complex economic situation."
At that time, Cabrisas justified the delays in payments by citing Cuba's inclusion on the list of state sponsors of terrorism, which complicates access to international financing.
This agreement comes three days after U.S. President Joe Biden removed the island from that list.
The Cuban government has restructured its debt with the Paris Club several times in recent years.
According to official reports, by the end of 2022, Cuba's external debt with the Club amounted to 4.827 billion dollars, making it the second largest debt in Latin America, surpassed only by Venezuela.
Despite the magnitude of the debt, Cuban authorities insist that they remain committed to meeting their obligations.
The Paris Club, a forum of 19 industrialized countries, has historically been a key player in restructuring the debts of troubled nations.
The members of the institution include countries such as France, Spain, Italy, Japan, and the United Kingdom, among others.
In 2021, Cuba achieved the forgiveness of part of its debt, allowing it to continue with its financial restructuring strategy while facing the challenges posed by the internal crisis and international sanctions.
Now the agreement with the Paris Club provides a temporary reprieve in a more favorable economic context for the regime, which had several sanctions lifted in the last week of Biden's presidency.
Frequently asked questions about the refinancing of Cuba's debt with the Paris Club
What does the new debt refinancing agreement between Cuba and the Paris Club entail?
The new refinancing agreement means that Cuba has managed to revise the payment terms of its external debt amounting to 4.827 billion dollars with the Paris Club. This agreement offers temporary relief to the Cuban regime, allowing it to reorganize payments in a more favorable economic context following the lifting of several sanctions.
How has Cuba's removal from the list of state sponsors of terrorism affected this debt agreement?
The removal of Cuba from the list of state sponsors of terrorism by the United States has facilitated this debt agreement, as it improved the conditions for access to international financing and eliminated some economic restrictions that hindered Cuba's financial relations with other countries.
What has been the Cuban government's reaction to the new refinancing agreement?
The Cuban government has expressed gratitude to the member countries of the Paris Club for their understanding of the island's difficult economic situation. Cuba has reaffirmed its commitment to fulfill its obligations despite the challenges, reflecting its strategy to maintain good relations with its international creditors.
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