HAVANA – Spain and Cuba signed an agreement to restructure the latter’s short-term debt, including cancelation of all default interest and part of the principal.
The debt, corresponding to defaults since 2000, amounts to $222 million and is derived from credit insurance coverage export managed by the Spanish agency CESCE.
Spanish Minister of Economy and Competitiveness Luis de Guindos and Cuban Vice President Ricardo Cabrisas signed the agreement at the State Council headquarters in Havana on Monday.
The agreement includes restructuring residual debt payments to a period of 10 years and a three-year grace period for repaying the principal amount.
According to a statement by the Spanish Ministry of Economy, part of the cancelation was formalized directly, while the other part was settled through a Debt Conversion Program involving the creation of a Countervalue Fund in Cuban pesos to finance priority projects for the government agreed by both the countries.
The agreement is the result of July talks between De Guindos and Cabrisas in Madrid and lays the foundation for future bilateral financial ties, the Spanish minister said.