Spain's Council of Ministers has given the green light to a fresh restructuring of Cuba's debt to the Iberian nation, amounting to 193,425,824.70 euros, coupled with 141 million Canadian dollars and 811,000 US dollars. This move is part of the 2025 bilateral addendum to the debt treatment agreement initially signed on May 4, 2016.
According to Spanish media outlets, this operation addresses liabilities stemming from credits provided by the FIEM (Fund for the Internationalization of Spanish Enterprise). A summary of the agreement highlights that the Spanish government, through its Ministry of Economy, Commerce, and Enterprise, is implementing a new approach to manage the outstanding debt Cuba owes Spain, under the bilateral understanding established in 2016.
The decision was made during a session that also included allocations of 2.4 million euros for the search and identification of victims of the War and Dictatorship, along with an additional 350,000 euros directed to international organizations and funds. The document reviewed places this decision within the context of executive measures that the government adopts weekly during the Council of Ministers meetings, impacting various areas of public expenditure.
Debt Forgiveness and Conversion Program
In July, the Spanish government initiated a Debt Conversion Program with Cuba valued at up to 375 million euros. This program aims to transform the owed payments into investment projects on the island, focusing on sectors such as energy, water, and food security. These projects are to be monitored by both governments and involve Spanish companies, adhering to principles of transparency and accountability.
This initiative is part of the 2016 agreement and aligns with a multilateral effort spearheaded by the Paris Club. As of 2020, Cuba's external debt to Spain stood at 1.970,66 million euros, representing nearly two-thirds of the total debt owed by Ibero-America to Spain, which amounts to 3.086,68 million euros. The recent restructuring adds to this history, continuing the existing bilateral framework.
Beneath the surface of "restructuring," this measure seems to hint at a debt forgiveness favoring Cuba. These steps are unfolding at a precarious time for Prime Minister Sánchez's government, which is reeling from corruption scandals that have rocked the upper echelons of the Spanish Socialist Workers' Party (PSOE).
The most severe case involves Santos Cerdán, the former Secretary of Organization for the PSOE and a key figure close to the president. Cerdán has been placed in provisional detention without bail, accused of leading a network involved in illegal commissions alongside other senior officials and advisers of the party.
FAQs on Spain and Cuba's Debt Agreement
What is the total amount of Cuba's debt restructured by Spain?
The restructured debt amounts to 193,425,824.70 euros, along with 141 million Canadian dollars and 811,000 US dollars.
What is the purpose of the Debt Conversion Program initiated by Spain?
The Debt Conversion Program aims to convert debt payments into investment projects in Cuba, focusing on energy, water, and food security, with oversight from both governments.
How does the restructuring align with previous agreements?
The restructuring is part of the bilateral agreement from 2016 and aligns with multilateral efforts led by the Paris Club to manage Cuba's debt.