Spain Utilizes Debt Relief Funds to Supply Food to Cuba

The Spanish government has allocated half a million euros from its debt conversion program with Cuba to purchase food for the Cuban populace. This marks the first instance where such funds have been used for current expenditure, as reported by El País on Monday.

The debt conversion program, initially agreed upon between Spain and Cuba in 2016 and reactivated in June 2025, is the mechanism employed. Through this agreement, Madrid aims to mobilize up to 375 million euros to finance sustainable development projects in sectors such as energy, water, and food security.

Under this arrangement, Spain forgives Cuba's debt repayment in exchange for the funds being directed toward projects monitored by both governments. This essentially transforms them into a donation of Spanish public money.

Although the program typically does not cover current expenses, the bilateral committee responsible for approving investments made a humanitarian exception in February. This decision coincided with increasing U.S. restrictions on Venezuelan oil, which worsened the crisis on the island.

The pilot project, now approved, continues a food assistance program in schools in eastern Cuba, where food supplies are provided by local agricultural cooperatives.

This initiative aligns with the commitment made by President Pedro Sánchez alongside Brazil's President Luiz Inácio Lula da Silva and Mexico's Claudia Sheinbaum at the progressive summit held in Barcelona on April 19.

In a joint statement, the three leaders expressed, "We express our deep concern for the severe humanitarian crisis facing the Cuban people and urge the adoption of necessary measures to alleviate this situation and avoid actions that worsen living conditions or contravene international law."

The decision to utilize the conversion fund for food has sparked discontent among the 200 Spanish companies that form the Platform of Affected by the Cuban Government's Non-Payments, which has accumulated unpaid debts totaling 316 million euros.

Half of these companies are based in Catalonia, with another 20% located in the Basque Country.

Last Tuesday, the Senate rejected a motion from the Plural Group urging the government to assist these companies in recovering their debts. Although Junts, PP, and PNV supported the motion, the remaining groups abstained, and it did not pass.

Socialist spokesman Juan Lobato defended the rejection, stating, "We cannot endorse state compensation for private companies' commercial dealings with the Cuban government. Public funds cannot be allocated to expenses not authorized by law."

The crisis prompting this aid began in January when the Trump administration cut off Venezuela's oil supply to Cuba, depriving the island of its main energy source, leading to economic paralysis and a tourism collapse.

The lack of kerosene forced Iberia to suspend direct flights to Havana between June and September, and eleven more airlines have canceled operations to the island this year.

Meliá, the Spanish hotel group with the most assets in Cuba—36 properties—closed the first quarter operating at 50% capacity and warned that the situation "has significantly impacted the tourism market."

According to the Food Monitor Program, 96.91% of the Cuban population lacks adequate food access, with approximately 4.5 million people at risk of food insecurity, placing the current crisis among the worst since the Special Period of the 1990s.