Cuba and Italy agree to debt restructuring in an agreement signed Tuesday. The two countries signed four agreements on medium and long term debt.
These signify an important debit swap arrangement which comes as part of the implementation of the Multilateral Agreement Cuba signed with the Ad-Hoc Group of Creditor Nations in the Paris Club, according to a press release of the Cuban government.
The agreements provide a restructuring of debt for Cuba. Cuban Vice President, Ricardo Cabrisas, Italian Deputy Foreign Affairs Minister, Mario Giro, Italian Deputy Minister of Economic Development, Ivan Scalfarotto, and SACE CEO (Italy’s export credit agency) Alessandro Decio were among the individuals in attendance who signed the agreements.
Mr. Giro said it was a good deal for both countries because, “the agreements offer a definitive and sustainable solution to the debt situation of Cuba with Italy and confirm the mutual commitment to strengthen the economic relations between the two countries in a market where our “Made In Italy” still has much growth potential.”
SACE CEO Decio said of the agreement, “Thanks to the reforms and the important steps taken at the international level, a new phase for economic relations with Cuba is starting.”
The agreements involve Cuba’s debt of € 88.6 million, to be converted to a fund for strategic projects with Italian corporation. A bilateral committee was also created to oversee future economic matters between the two nations.
Cuba has now fully normalized its long-term debt with 12 of the 14 members of the Group of Creditor Nations of the Paris Club.
The Cuban government under the leadership of President Raul Castro has been acting upon foreign debt repayment and to elevate the business profile of the Island within the global investment community.