Narrative
Full Description
Project narrative
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
1. 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. 2. 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.