Cuba, Paris Club reach deal to skip 2021 debt payment
by SOURAV D | VIEW 1121
Cuba, the US-sanction hit beleaguered economy on the Caribbean, had cut a deal with Paris Club of creditors which in effect would suspend an annual debt pay-off for Havana due in November, at least five diplomats familiar with the Paris Club, a group of officials from major creditor countries focused on finding sustainable and co-ordinated solutions for the debt-strapped nations, had unveiled later last week on condition of anonymity. Aside from that, a press agency report had quoted one of the diplomats as saying that the deal was originally rubberstamped back in June this year, but had not been disclosed, while under the financial terms of an amended deal, the Paris Club had annulled a payment due in November at least until next year, illustrating the extent of foreign reserve crises the communist-run country had been grappling with.
In factuality, Paris Club had reached a historic agreement with Cuba back in 2015 under which Havana had been forgiven a whopping $8.5 billion of an $11.1 billion in sovereign debts alongside charges what the Central American nation had defaulted back in 1986s, while Cuba had agreed to pay off the remaining in instalments before 2033, however, had defaulted last year.
Cuba reaches Paris Club deal to skip debt payments until 2022
According to the amended deal as cited by a diplomat in a press agency report, the revised accord that both parties had agreed, stressed a resumption of debt-payments by 2022 with adjustments of payment schedule.
Nonetheless, both parties had said in a statement in June this year, “This agreement provides more time to the Republic of Cuba to honour several payments due under the 2015 Arrangement, while maintaining the present value of these amounts”.
So far, Cuba had fallen short of a $200 million in debt payments.