The National Bank of Cuba (BNC) must pay more than 18.1 million pounds sterling (approximately 21.2 million euros) to the investment fund CRF I Limited following a default judgment issued by the Commercial Court of London on July 31, as reported this Monday by Telemundo 51.
The ruling, issued by Judge Mr Justice Andrew Baker, includes £18,034,078.32 in damages and £89,804.96 in legal costs.
The ruling was issued in default because the BNC did not submit any arguments in response to the damage assessment request submitted by CRF, which the court interpreted as a waiver of their right to defend themselves at this stage of the proceedings.
The litigation originates from two commercial loans entered into in 1982 and 1984 by the National Bank of Cuba with European banks —Crédit Lyonnais Bank Nederland and Istituto Bancario Italiano—, denominated in German marks, with the Republic of Cuba as the guarantor.
Cuba stopped paying those obligations in the mid-1980s. CRF I Limited, a fund established in 2009 in the Cayman Islands, acquired those credits in the secondary market and filed its claim in London in February 2020, demanding €72,122,664.70 in unpaid sovereign debt.
The case went through several judicial instances. In April 2023, Judge Sara Cockerill acknowledged CRF as the legitimate creditor of BNC.
The Appeals Court reaffirmed this position in November 2024, and the Supreme Court of the United Kingdom rejected BNC's final appeal on March 31, 2025, clearing the way for the substantive phase.
One of the most significant pieces of information provided by CRF this Monday is that the Cuban regime ignored multiple negotiation attempts before the ruling was made.
The investment fund claimed to have sought to engage in constructive dialogue with the Government and the National Bank of Cuba to address the commercial debt, under terms that are fair for creditors, commercially realistic for Cuba, and able to facilitate the eventual return of the country to international financial markets.
The most recent management effort was an alleged letter sent directly to President Miguel Díaz-Canel on June 22, just weeks before the final ruling.
In that letter, CRF proposed to hold confidential discussions and offered concrete solutions: instruments linked to growth, debt-for-equity swap agreements, and structures designed to preserve Cuba's short-term liquidity. However, they claim that neither the Cuban government nor the BNC responded.
The president of CRF, David Charters, confirmed on July 31 that the fund received no response to its proposals. In his statement, he warned that litigation "was never his preferred option" and that it is still possible to reach a negotiated solution, although he conditioned any agreement on the existence of "a serious and constructive attitude from Cuba and the BNC."
The 10 key moments of the CRF vs. Banco Nacional de Cuba case
This is a complex case that has been developing for decades. To provide the reader with a better understanding of the facts, we have prepared this brief timeline:
1. January 17, 1982. The National Bank of Cuba (BNC) signs its first loan with Crédit Lyonnais Bank Nederland, guaranteed by the Republic of Cuba.
2. January 30, 1984. The BNC takes out a second loan with the Istituto Bancario Italiano, also backed by the Cuban government.
3. Mid-1980s. The government of Fidel Castro suspends the payment of both debts and declares the Cuban external debt "unpayable," leaving the country outside the international credit markets.
4. In 2013. The CRF I Limited fund begins acquiring Cuban debt in the secondary market and initiates negotiations with Havana to seek a restructuring.
5. February 18, 2020. CRF files a lawsuit with the High Court of Justice of England and Wales to claim 72.1 million euros related to these loans and accrued interest.
6. April 4, 2023. Judge Sara Cockerill acknowledges CRF I Limited as a legitimate creditor of the National Bank of Cuba, allowing the litigation to proceed.
7. November 14, 2024. The Court of Appeal of England and Wales confirms the first instance ruling and upholds CRF as the legitimate creditor.
8. March 31, 2025. The Supreme Court of the United Kingdom rejects the final appeal from the BNC, upholding the status of CRF as a creditor and initiating the phase for calculating damages.
9. June 22, 2026. CRF sends a final negotiation proposal to President Miguel Díaz-Canel, offering alternatives for debt restructuring. According to the fund, the Cuban government did not respond.
10. July 31, 2026. The London Commercial Court orders the National Bank of Cuba to pay £18.1 million (approximately €21.2 million) after issuing a default judgment, as the BNC did not present any arguments in the final phase of the proceedings.
The ruling comes amid an unprecedented crisis of Cuba's external debt.
Cuba admitted in January 2026 that it could not normalize the servicing of its external debt in the short term. The accumulated debt with the Paris Club approaches 4.8 billion dollars, while arrears with Brazil exceed 676 million and with Mexico reach 1.5 billion dollars.
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