The criminal enterprise commonly known as the Communist Cuban government doesn’t pay its debts. As I mentioned yesterday, in 1985 Fidel Castro called for Latin America to collectively repudiate its foreign debt.
Cuba has been defaulting for a long time (emphasis added),
Cuba last reported its “active” foreign debt, accumulated after it declared a default in the late 1980s, as $13.9 billion in 2011. It no longer reports its “passive” debt from before the default, which economists estimate at $8 billion.
Pavel Vidal, a former Cuban central bank official who now lives in Colombia but follows Cuba’s finances closely, said he estimates the foreign debt is “somewhere between $25 billion and $30 billion” and that a $10 billion reserves figure is plausible.
But there’s a sucker born every minute, so Spain agrees to forgive part of Cuba’s short-term debt. Cuban government won’t have to pay penalties on late payments and some of principal. Madrid and Havana want to bolster joint research and development projects
Cuba’s debts with Spain total about €535.6 million, but this figure had increased five-fold in the last three decades with interest and penalties for late payments.
Good luck with those “joint research and development projects,” guys. Just don’t expect to collect.