Cuba acknowledges difficulties in repaying its external debt and is asking for "understanding" from its creditors

The Cuban regime acknowledged to its main international creditors that it is facing serious difficulties in meeting its external debt payments and requested "understanding" in light of the deep economic and financial crisis that the island is experiencing.

According to a report from EFE, a delegation led by First Deputy Prime Minister Óscar Pérez-Oliva met in Paris with representatives of the Paris Club, where they explained Cuba's economic situation and attributed the blame to U.S. sanctions, which were tightened during President Donald Trump's second term, stating they are “the main obstacle” to the country's development.

The creditors of the Paris Club —including France, Spain, Japan, Canada, the United Kingdom, Switzerland, and other European countries— acknowledged Cuba's "efforts" to meet its financial commitments and emphasized the importance of maintaining the "constructive ties established."

In January 2025, both parties agreed to amend the terms of the agreement signed in 2015 and revised in 2021, due to the Cuban government's inability to meet its obligations.

According to the creditors' group statement, the new agreement offered Havana "more favorable conditions" to address its economic difficulties and maintain financial relationships between the parties.

The historic 2015 agreement eliminated $8.5 billion of a total debt of $11 billion, with the commitment that Cuba would pay the remainder by 2023.

However, the island has partially defaulted on payments since 2019, and in 2020, it declared itself unable to meet them during the pandemic, requesting a two-year moratorium on about 200 million dollars in arrears.

The Paris Club only accepted a one-year extension, with the possibility of renegotiation, as EFE reminded.

In mid-2021, the parties once again extended the deadline for the commitments, but the situation has not improved.

The Cuban economy has experienced a contraction of 15% over the past five years, facing serious liquidity problems and a shortage of foreign currency, while businesses and citizens increasingly encounter restrictions on accessing cash.