Related videos:
The government of Cuba owes Argentina more than 3 billion dollars from a debt that began to develop in the 1970s.
The updated official amounts from the Bank of Investment and Foreign Trade (BICE), which are recorded in its accounting entries after a capitalization in 2011, were reported by the newspaper La Nación.
The recorded debt is US$1,278.75 million, but the interest exceeds the principal of the debt and, as of August of this year, amounted to US$1,722.06 million, the information specifies
Likewise, interest rates are rising, and between March of last year and the latest available data for 2025, they increased by exactly $113.28 million.
Behind the island, the Cooperative Republic of Guyana and the Central African Republic complete the trio of Argentina's main debtors.
However, the amounts owed by these other debtors are far from the island
Guyana originally owed US$4.51 million, which, with accrued and compensatory interest, amounts to US$17.81 million.
For its part, the Central African Republic owes $43.12 million.
Origin of the debt
The Nation explains that Cuba is Argentina's largest debtor due to a debt that was created on August 24, 1973, during the presidency of Raúl Lastiri, who took over from Héctor J. Cámpora, who was a frontman for Perón.
José Ber Gelbard, Minister of Economy of Lastiri, lent Cuba US$600 million to finance the sale of tractors, agricultural machinery, trucks, and vehicles.
In exchange, Argentina would export Fiat 125, Renault 12, Ford Falcon, Ami 8, and Peugeot 404 to the Castro regime.
The export plan began during the government of Héctor Cámpora, continued under the dictatorship, and extended until the presidency of Raúl Alfonsín, the article specifies.
Attempts to collect the debt
The Cuban government took out the loan but never paid off the total amount. Since then, several Argentine governments have attempted to claim it, without success.
Only during the presidency of Raúl Alfonsín did Cuba make payments of US$102 million in 1988 and US$98.6 million the following year.
Between January and August 1995, during the presidency of Carlos Menem, Argentina sent several missions to Havana to promote reconciliation.
On August 25 of that year, the amount was set at US$ 1,278 million, to which the Libor rate – the benchmark in the British wholesale market – plus 1.5 percentage points was applied. That concluded the negotiations.
For his part, upon taking office, Néstor Kirchner tasked Foreign Minister Rafael Bielsa with traveling to Havana to initiate collection efforts.
The official presented a proposal agreed upon with the Minister of Economy, Roberto Lavagna, which included accepting technology for medications and treatment of disabilities, and converting part of the debt into bonds within the Argentine market that would allow their holders to participate in the Cuban tourism industry.
The latter was an idea from the Undersecretary for Latin American Affairs, Eduardo Sguiglia. Bielsa tried to collect the debt until the end of his term, but without results.
The chancellor even traveled to Cuba in October 2003 and discussed the matter with Fidel Castro, who reportedly referred him to Francisco Soberón, president of the Central Bank. However, the negotiations stopped at that point.
Marcos Peña, the chief of staff for Mauricio Macri, resumed the task. Just as he was about to travel to discuss the matter, a hurricane struck the island and the mission was suspended.
Frequently Asked Questions about Cuba's Debt to Argentina
How much does Cuba owe Argentina and what is the origin of the debt?
Cuba owes Argentina more than 3 billion dollars, a debt that originated in 1973 during the presidency of Raúl Lastiri. 600 million dollars were loaned to finance the sale of agricultural machinery and vehicles. The Cuban regime has made partial payments, but the interest has exceeded the original capital.
Why hasn't Cuba paid its debt to Argentina?
The Cuban regime has claimed a lack of liquidity as a reason for not paying the debt, although leaked documents show that GAESA, a Cuban military conglomerate, has over 18 billion dollars in reserves. This suggests that a lack of willingness, rather than capacity, could be the reason behind the non-payment.
What attempts has Argentina made to collect the debt from Cuba?
Argentina has tried several times to reclaim the debt, from sending missions to Cuba to proposing to accept medical technology as part of the payment. However, all attempts have failed. The debt remains outstanding, and interest continues to accrue.
How does Cuba's debt affect its relationship with other countries?
The debt with Argentina is just one part of the broader issue Cuba faces with its international creditors. The Cuban regime has defaulted on debt restructuring agreements with several countries, which has impacted its credibility and economic relations. The situation has raised questions about Cuba's transparency and willingness to pay.
Filed under: