China forgave debt to Cuba
2022.11.27 09:57
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China forgave debt to Cuba
Budrigannews.com – After a meeting between the leaders of the two communist parties, China has agreed to restructure Cuba’s debt and provide new trade and investment loans to the devastated Caribbean island.
Alexander Gil, Cuba’s Minister of Economic Policy, stated that he had also contributed $100 million to the country’s effort to combat the economic crisis and shortage of basic goods brought on by the hurricane in Iana, which ravaged the western portion of the Pinardel Rio province.
Gil spoke with President Mikhail Diaz Canel in an interview with the official media while he was spending the weekend in Algeria, Russia, Turkey, and China. He was returning home from a tour of these countries over the weekend.
Chinese trade and investment processes, according to analysts and diplomats, have slowed down over the past few years as a result of Cuba’s inability to restructure debt payments, which has been exacerbated by tougher sanctions, the pandemic, and domestic economies’ inefficiency.
Gil stated, “We are locating formulas for debt restructuring and settlement that are mutually acceptable.”
Although there is no official information, analysts estimate the debt to be in the billions.
Cuba last detailed $19.6 billion in unfamiliar obligation in 2019.
Contrary to Venezuela, China is Cuba’s most significant commercial partner, despite the fact that trade turnover decreased from $2 billion in 2017 to $1.3 billion in 2018.
Additionally, several investment construction projects were put on hold.
According to Gil, the Chinese authorities agreed to complete the floating docks, wind power, and sun protection equipment project as soon as possible.
During his talks with Beijing, President Diaz Canel said that his talks with President Xi Jinping, who understands Cuba’s problems, will focus primarily on debt.
The Cuban President stated that a Chinese government colleague had emphasized the need to resolve all of Cuba’s issues, including debt, and that doing so would not impede development.
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