The Cuban government owes Argentina over $3 billion, a debt that has been accumulating since the 1970s. Official figures from the Bank for Investment and Foreign Trade (BICE), which documented this debt after a 2011 capitalization, were reviewed by the newspaper La Nación. The recorded debt stands at $1,278.75 million, but interest has eclipsed the principal, reaching $1,722.06 million as of August this year.
Interest continues to accrue, with an increase of exactly $113.28 million between March of last year and the latest available data from 2025. Following Cuba, the Cooperative Republic of Guyana and the Central African Republic are the next largest debtors to Argentina, though their amounts are significantly smaller.
Guyana originally owed $4.51 million, which has increased to $17.81 million with accrued and compensatory interest. Meanwhile, the Central African Republic owes $43.12 million.
Historical Roots of the Debt
According to La Nación, Cuba became Argentina's primary debtor due to an agreement on August 24, 1973, during Raúl Lastiri's presidency, who continued the agenda of Héctor J. Cámpora, a proxy for Perón. José Ber Gelbard, Lastiri's Minister of Economy, provided Cuba with a $600 million loan to finance the sale of tractors, agricultural machinery, trucks, and vehicles. In return, Argentina would export Fiat 125, Renault 12, Ford Falcon, Ami 8, and Peugeot 404 to the Castro regime.
This export plan commenced under Héctor Cámpora's government, continued through the dictatorship, and extended into Raúl Alfonsín's presidency.
Efforts to Recover the Debt
While Cuba received the credit, it has never fully repaid the amount. Several Argentine administrations have made fruitless attempts to recover the funds. During Raúl Alfonsín's presidency, Cuba made payments of $102 million in 1988 and $98.6 million the following year.
Between January and August 1995, under Carlos Menem's presidency, Argentina sent multiple delegations to Havana to negotiate. On August 25 of that year, the debt was set at $1,278 million, with an interest rate of Libor plus 1.5 percentage points. Negotiations concluded at that point.
When Néstor Kirchner began his presidency, he tasked Foreign Minister Rafael Bielsa with traveling to Havana to initiate collection efforts. Bielsa proposed, in agreement with Economy Minister Roberto Lavagna, to accept technology for medications and disability treatments and to convert part of the debt into bonds within the Argentine market, allowing holders to engage in the Cuban tourism industry. This idea was conceived by Eduardo Sguiglia, the Deputy Secretary for Latin American Affairs. Despite Bielsa's persistent efforts, including a 2003 visit to Cuba where he discussed the matter with Fidel Castro, no progress was made.
Marcos Peña, Chief of Staff under Mauricio Macri, resumed efforts to address the debt. However, just as he was about to travel to Cuba for discussions, a hurricane struck the island, postponing the mission indefinitely.
Understanding Cuba's Debt to Argentina
How much does Cuba owe Argentina?
Cuba's debt to Argentina is over $3 billion, with a principal amount of $1,278.75 million and interest reaching $1,722.06 million as of August 2023.
When did the debt between Cuba and Argentina originate?
The debt originated on August 24, 1973, during Raúl Lastiri's presidency, as part of a financial agreement to support Cuban purchases of Argentine agricultural machinery and vehicles.
What efforts have been made to recover Cuba's debt to Argentina?
Various Argentine administrations have attempted to recover the debt, including proposals to accept technology or convert debt into bonds. However, these efforts have not resulted in a successful repayment.