Cuba nears deal with Paris Club on 1986 default debt forgiveness
Cuba nears deal with Paris Club on 1986 default debt forgiveness
8:40 pm, December 08, 2015
Reuters
HAVANA (Reuters) — Cuba is near a deal with 15 rich creditor nations of the Paris Club to restructure $16 billion in debt stemming from a 1986 default, with creditors expected to forgive most of the amount owed, diplomats close to the talks said.
The parties will meet in Paris later this week and, after two years of informal discussions, are close to a multilateral deal, the diplomats said.
“Cuba has agreed to pay the principal of around $5 billion owed since its 1986 default in exchange for forgiving $11 billion in service charges, interest and penalties,” said one diplomat from a major creditor nation. “Negotiations are now more about how much time they need to pay it and how much of the money will be reinvested in Cuba.”
Cuba has secured investment agreements from creditors in previous debt negotiations and is seeking similar commitments from the Paris Club nations, the diplomats said.
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