Active Mixed AidData Chinese Aid

Chinese Government restructures approximately $3.17 billion of the Cuban Government's outstanding debt obligations in 2022 (Linked to Record ID#39195)

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Cuba
Country	Cuba
Start Date	Nov 01, 2022
End Date	Dec 31, 2031
Duration	3,347 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`105794`

Grant Description

In 2016, the Chinese Government reportedly rescheduled 52.8% of the Cuban Government's outstanding debt obligations (worth $3.17 billion). The exact terms of the restructuring are unknown.

However, the Chinese Government reportedly granted the Cuban Government an additional five year grace period (2016-2020) and an interest rate reduction (as captured via Record ID#39195).

The Cuban Government reportedly defaulted on its repayment obligations to the Chinese Government in 2020, 2021, and 2022.

Then, in November 2022, the Chinese Government and the Cuban Government reportedly agreed to another debt rescheduling that postponed repayments by an additional five years (until the end of 2027). However, during the additional five-year grace period, default (penalty) interest will reportedly be charged.

📋 Staff Comments

For the time being, AidData assumes that the November 2022 rescheduling covered $3.17 billion of outstanding debt for two reasons: (i) the 2016 rescheduling reportedly covered $3.17 billion of outstanding debt and suspended the Cuban Government’s repayment obligations from 2016 to 2020, and (ii) the Cuban Government reportedly defaulted on its repayment obligations to the Chinese Government between 2020 and 2022.
On August 7, 2021, the Russian Government and the Cuban Government also signed a debt rescheduling agreement, which President Putin signed into law shortly after Russia’s invasion of Ukraine (on June 11, 2022). The rescheduling agreement postponed the Cuban Government’s repayment obligations until December 15, 2027.

📚 Sources & References

La inserción internacional de la economía cubana: Cuadrando la caja
Cuba: Factores de la compleja coyuntura económica en el primer semestre del 2022 (I)
La deuda externa de la economía cubana en la actualidad
Los problemas de la inserción internacional de la economía cubana a través de los años (III)
Cuba, entre la vida y la deuda
Nuestro dinero: ¿qué hace el Estado con él?
Las finanzas externas de Cuba: entre desafíos y oportunidades
Cuba comenzará a pagar sus deudas a Rusia en rublos
CUBA’S ECONOMY IN TIMES OF CRISIS
EVOLUCION DE LA ECONOMIA MUNDIAL EN EL 2021 Y SU IMPACTO EN CUBA. PERSPECTIVAS DEL 2022
Cuba consigue una reducción de la deuda con China y nuevos fondos
Auxilio estratégico de cuatro países a Cuba
Aristas comerciales-financieras de una gira presidencial
Ministro de Economía de Cuba: Los resultados de la visita a China son muy positivos
America’s Foes Are Joining Forces
La economía cubana en 2023 y perspectivas para 2024 (I)
Western creditors and Cuba pledge to salvage debt deal
Economy 2022: once upon a time in Cuba (I)
El régimen de Cuba incumplirá sus pagos con el Club de París por cuarto año consecutivo
Informe: “La economía cubana: situación en 2017- 2018 y perspectivas para 2019”
Russia postpones Cuba debt payments amid warming relations Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.