France to Forgive Cuban Debt In Exchange for Development Financing

France to Forgive Cuban Debt In Exchange for Development Financing

According to Reuters, France is expected to sign a deal offering more debt relief to Cuba during Raul Castro’s five day trip to Paris.

Mr. Castro’s visit, which begins on Saturday, is the first trip of a Cuban head of state since his brother, Fidel Castro, visited France in 1995.

Half of the outstanding arrears owed to France will be converted into a 212 million euro joint Cuba-French fund to finance projects in the country.

Currently, there are around 60 French companies operating in Cuba, including construction and shipping companies.

Several development and commercial deals are also expected to be signed during Castro’s trip, the source told Reuters.

France is Cuba’s largest creditor.

In December 2015, a deal was struck between Cuba and the Paris Club to forgive $8.5 billion of Cuba’s $11.9 billion of debt, including a $4 billion debt owed to France in late payments.

France to Forgive Cuban Debt In Exchange for Development Financing was last modified: May 3rd, 2016 by Cuba Journal

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