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Overview

Beijing North Vehicle Group Corporation — a subsidiary of NORINCO — reschedules outstanding debt obligations of the Cuban Government

Commitment Year•2010Country of Activity•CubaDirect Recipient Country of Incorporation•CubaSector•Action Relating To DebtFlow Type•Debt rescheduling

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2010

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned companies

  • Beijing North Vehicle Group Corporation

Receiving agencies

Government Agencies

  • Government of Cuba

Loan description

Beijing North Vehicle Group Corporation — a subsidiary of NORINCO — reschedules outstanding debt obligations of the Cuban Government

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2010, Beijing North Vehicle Group Corporation (北京北方车辆集团有限公司) -- a subsidiary of NORINCO -- and the Government of Cuba signed a debt rescheduling agreement. Under the terms of the agreement, the borrower agreed to make $13.3244 million in semi-annual principal payments and $4.8163 million in semi-annual interest payments between 2011 and 2025 (on January 1 and July 1 of each year). However, the imposition of U.S. sanctions on the Government of Cuba prevented it from meeting its repayment obligations under the rescheduling agreement. As of 2020, three semi-annual repayments were overdue (i.e. in arrears). At that time, NORINCO assessed the probability of default to be 85% and projected a financial loss (due to default) of 56.3%.