The revelation of financial documents from GAESA, the business conglomerate of the Revolutionary Armed Forces, continues to send shockwaves beyond Cuba's borders. A recent investigation by the Miami Herald has not only unveiled the vast reserves of this military corporation—over $14.467 billion stored in undisclosed bank accounts as of March 2024—but has also raised red flags among governments, businesses, and taxpayers who have been consistently told by Havana that there is no money to settle debts.
The U.S.-Cuba Economic and Trade Council, based in New York, has posed a crucial question: has the Cuban regime been deceitful about its actual ability to meet its financial obligations? For this organization, which closely monitors trade relations with the island, the Herald's findings highlight the power of GAESA and challenge decades of official statements' credibility.
In a statement, the Council questioned the true nature of the leaked financial documents: are they indicative of a legitimate yet complex corporate structure, or do they expose a deliberate strategy to conceal wealth, evade payments, and manipulate international creditors?
Contradictory Accounts and Unsettled Debts
The issue becomes even more pressing given that while GAESA amassed multi-billion-dollar reserves, the Cuban regime was in negotiations—or default—on commitments with its closest creditors: Moscow, Beijing, and the Paris Club. Despite Havana's claims of being unable to cover payments or interests, it maintains deposits equivalent to 76% of its primary state corporation's liquidity.
The Council also reminded that since December 2001, U.S. food and agricultural exporters have received about $8 billion in prepayments from Cuba, as required by U.S. trade sanction laws. If there are funds to comply strictly with this legal framework, one must wonder why they aren't used to settle debts with other partners.
International Creditors in Focus
The list of affected entities is extensive. Shareholders of Sherritt International Corporation in Canada are owed $100 million in accounts receivable linked to their mining and energy operations on the island. Likewise, Meliá Hotels International in Spain still manages over 2,300 rooms in Cuba, but had to disaffiliate nearly a thousand in the first half of 2025. Corporate reports cite chronic delays in property maintenance—all owned by GAESA companies—and declining service quality as the cause.
In Spain, taxpayers also have reason to question their government's policy, which converted around $400 million of unpaid debt from Cuba into investments—a move that practically admits the unlikely recovery of the debt in cash.
A Persistent Pattern of Defaults
Havana's history of defaults is long and repetitive. The Council noted that Cuba has failed to honor restructuring agreements worth billions with countries like Canada, China, Japan, Mexico, Russia, and Vietnam, despite massive write-offs and reductions.
The case involving the Paris Club is telling: following a 76% reduction of the debt in 2015, Cuban authorities once again failed to meet the payment schedule. Meanwhile, foreign companies not based in Cuba accumulate hundreds of millions in accounts receivable, constantly facing requests for discounts and postponements.
The Questionable Credibility of Cuba's Government
The documents leave an uncomfortable yet straightforward conclusion: the credibility of the Cuban government and its state enterprises is under scrutiny. If the leaked data is accurate, Cuba could have paid a significant portion of its debts for years but chose to keep the funds under military control, shielded from any civil or international scrutiny.
For creditors and taxpayers worldwide, the leak of the so-called "GAESA Papers" is not just about accounting; it confirms that beyond the embargo or internal crisis, there is a structural issue of transparency and willingness to pay.
The Hefty Burden of Cuban Debt
The controversy over GAESA's multi-billion-dollar reserves unfolds in a country burdened by a substantial history of debts and restructurings with some of the world's leading financial and commercial players. According to the Economist Intelligence Unit, Cuba's total debt—encompassing both public and private obligations—was estimated to be between $28.5 billion and $28.7 billion by the end of 2023.
The Paris Club, which includes the main official creditors, is among the most affected. In 2015, the organization forgave $8.5 billion of Cuba's original $11.1 billion debt, leaving the remainder to be paid by 2033. Yet, Cuba defaulted again, leading to a new restructuring agreement in January 2025, which covers only about 16% of its total external debt.
Other significant creditors have opted for partial write-offs or renegotiations. Russia forgave 90% of a $35 billion historical debt in 2014, leaving a balance of approximately $3.2 billion to be paid over a decade. China forgave $6 billion in 2011, restructured another portion in 2022, and provided an additional $100 million in credits or aid. Mexico forgave 70% of a $487 million debt in 2013, and Vietnam canceled about $144 million in 2018.
Ironically, since 2001, and in strict compliance with the U.S. Trade Sanctions Reform and Export Enhancement Act (TSREEA), Cuba has paid about $8 billion upfront to U.S. agricultural and food exporters. This selective payment ability is one of the aspects that draws the most attention from analysts and creditors, as it contrasts with the refusal to meet financial commitments with other partners.
In this context, revelations about GAESA's reserves not only question the transparency of Cuba's economy but also reignite the debate on whether Havana has exaggerated or manipulated its "inability" to pay while maintaining billions under military control, beyond civil or international oversight.
Understanding Cuba's Debt and Financial Reserves
What is GAESA and why is it significant in Cuba's economy?
GAESA, or Grupo de Administración Empresarial S.A., is a conglomerate controlled by the Cuban military. It holds significant financial reserves and plays a crucial role in the country's economy by managing a wide range of industries, including tourism, retail, and real estate.
Why are GAESA's financial reserves controversial?
The controversy arises from the revelation that GAESA holds significant financial reserves while the Cuban government claims it cannot meet its international debt obligations. This discrepancy raises questions about the regime's transparency and willingness to pay its creditors.
How does Cuba manage its debts with other countries?
Cuba has a history of defaulting on its debts and has engaged in numerous debt restructuring agreements with countries like Canada, Russia, and China. Despite large-scale debt forgiveness from these nations, Cuba has continued to face challenges in meeting its payment schedules.
What impact do GAESA's reserves have on Cuba's international relations?
The revelation of GAESA's reserves affects Cuba's international relations by undermining trust between Cuba and its creditors. It suggests that the Cuban government may have the means to make payments but chooses not to, potentially straining diplomatic and economic ties.