The Cuban government is engaged in negotiations with China to restructure its banking, financial, and corporate debts. "In this instance, we also had the chance to update them on three crucial issues. Firstly, the processes we are undertaking between our governments and institutions to reorganize the debts," stated Oscar Pérez-Oliva Fraga, the Minister of Foreign Trade and Foreign Investment, during an interview with Cubadebate. This comes in the wake of Díaz-Canel's recent visit to the Asian giant.
"The governmental debt has already been reorganized, and we are finalizing the details to sign the reorganization of banking and financial debts. The conditions are also set to gradually initiate the restructuring of corporate debt," he specified. The official asserted that this will enhance conditions for engagement, allowing Chinese entrepreneurs to play a more significant role in Cuba's development programs.
"We acknowledged that despite high levels of indebtedness, Chinese businesses continue to support and collaborate with Cuba," he added. Díaz-Canel visited China last week for the 80th anniversary of the victory in the Chinese People's War of Resistance Against Japanese Aggression. Both governments issued a joint statement reaffirming their commitment to "accelerating the building of a China-Cuba Community with a Shared Future."
During the visit, Díaz-Canel met with over 70 Chinese entrepreneurs in Shenzhen, assuring them that the country is open to all proposals. However, this message systematically excludes Cuban residents on the island, who are unable to invest or compete on equal footing. Díaz-Canel urged Chinese businesses to continue contributing to Cuba's "economic development" in the short, medium, and long term, reiterating the official narrative of building a "shared future community," a notion that starkly contrasts with the exclusion of Cubans from their own country's business framework.
In 2021, Cuba's debt to China stood at $4.643 billion, stemming from Chinese initiatives aimed at developing low and middle-income countries, according to a report released on Wednesday. The Asian giant has provided record amounts of international development financing, establishing itself as a key financier for many low and middle-income countries, although the specifics of its grants and loans remain undisclosed. Back in 2011, China forgave a $6 billion debt owed by the Cuban government.
Understanding Cuba's Debt Restructuring with China
What is the current status of Cuba's debt with China?
As of 2021, Cuba's debt to China was $4.643 billion, with efforts underway to reorganize banking, financial, and corporate debts.
How does Cuba's debt restructuring impact its development?
Restructuring the debt aims to improve conditions for economic interaction, allowing Chinese businesses to increase their involvement in Cuba's development programs.
Why are Cuban residents excluded from investment opportunities?
Cuban residents face systematic exclusion from investing or competing on equal terms, limiting their participation in the national business landscape.