Reuters: Exclusive - Cuba's debt deal: Easy terms, but severe penalties if late again
Paris Club creditor nations have forgiven $8.5 billion of Cuba's $11.1 billion debt and restructured payments on the remainder with easy terms but the deal imposes severe penalties if Cuba falls behind again, according to a copy of the accord seen by Reuters.
The French government announced the outlines of the accord on Saturday. The document seen by Reuters offers previously unreported details.
The Cuba Group, made up 14 of the 19 wealthy nations of the Paris Club, said the agreement was an important step in the Communist-run island's efforts to rejoin the international financial community and could lead to more Western credits and investment.
Update: Cuba, Creditors Reach Historic Multi-Billion Debt Deal -- AP
WNU Editor: The U.S. was not involved in these negotiations, but France is the big loser in this debt deal. And while Cuba is probably hopeful that this agreement will mean more loans in the future .... my suggestion is that the credit markets stay away unless Cuba embarks on a serious and radical program to reform its economy .... which they have already hinted will not be happening.
1 comment:
Bam Bam is worried that Cuba won't remain communist after the Castros pass on.
It keeps on getting better and better with Bam Bam.
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