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The Spanish company EuroSMC S.A., dedicated to the manufacturing of industrial equipment, has broken its silence on the devastating consequences that the Cuban government's non-payment has had for its business.
“It created a hole of over a million euros that almost brought us to ruin”, a spokesperson for the company stated in comments to the newspaper Vozpópuli, confirming that Cuba has not met its obligations since 2017.
The testimony from EuroSMC reveals not only the extent of the non-payment but also the complex institutional framework behind the debt. Although the contracts were signed with Cuban importing companies like Energoimport, it is the International Trade Bank, a state entity, that managed the payments.
“What Cuba has done is generate brand names, but the piggy bank is all the same. It comes from the same place.”, the source stated.
Unlike traders or intermediaries, EuroSMC S.A., based in Madrid, is a manufacturer with complex industrial operations. With a presence in over 100 countries, it designs, manufactures, and markets electrical measurement equipment and power system testing tools used in substations, plants, and energy networks.
With more than 30 years of experience, EuroSMC has been internationally recognized for its technical excellence and certified quality of its products. The lack of payment has not only halted its cash flow but also threatened to shut down a company that has relied on its bilateral relationship with Cuba for years. “We are a manufacturer, not a trader. This has been devastating for us,” they lament.
The case of EuroSMC S.A. is not an isolated one. The Catalan employer's association Foment del Treball recently alerted that Cuba owes over 350 million euros to about 300 Spanish companies, most of which are small and medium-sized enterprises, many of which exported humanitarian goods to the island, such as medical supplies and food.
According to Foment del Treball, more than 15% of the companies affected by payment defaults have had to cease operations. Others are undergoing bankruptcy proceedings or are struggling to survive without access to compensation or international guarantees. Catalonia, historically linked to trade with the island, is the most impacted region, with over 40% of the affected companies.
Debts are concentrated in strategic sectors for the Cuban population, such as healthcare, energy, and food. Despite the seriousness of the situation, the Cuban government has not provided any payment guarantees, citing the lack of foreign currency caused by the economic crisis and the U.S. embargo.
Debt forgiveness amid a corruption scandal
While hundreds of Spanish companies are calling for justice, the government of Pedro Sánchez has partially forgiven Cuba's debt as part of a cooperation agreement. The so-called “debt swap” converts up to 375 million euros into investment projects in Cuba, thereby preventing the regime from repaying the money in cash.
The measure has faced harsh criticism for coinciding with a corruption crisis that directly implicates the Spanish Socialist Workers' Party (PSOE). The former Secretary of Organization of the party, Santos Cerdán, is currently in provisional detention for allegedly leading a network of illegal commissions alongside high-ranking government officials.
For many sectors in Spain, the cancellation of the debt to Cuba is seen as a maneuver to divert attention from the internal political crisis and, at the same time, as an unjustified gesture towards a regime that has systematically failed to meet its commitments.
The historic relationship between Spain and Cuba is facing one of its most delicate moments. The increasing number of affected businesses and the lack of real mechanisms to ensure payments have sown distrust in the island's commercial viability as an economic partner.
In the midst of the institutional silence in Havana, those affected in Spain continue to wait for a response that never arrives. “We have irrevocable letters of credit, fully documented. This does not expire, but no one pays,” EuroSMC lamented with resignation.
The human impact behind this crisis is reflected in lost jobs, factories on the brink of closure, and communities that rely on small businesses now suffocated by a debt that seems to have no foreseeable end.
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