Important step for normalization of Cuba’s finances

The Paris Club, an informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries, announced a milestone agreement on the $11.1 billion debt between Cuba and its creditors. Both parties agreed an arrangement to clear $2.6 billion of debt in arrears due to the Group of Creditors of Cuba over an 18-year period.

“This accord opens the way to a new era in relations between Cuba and the international financial community,” said Finance Minister Michel Sapin whose country, France, is Cuba’s biggest creditor. Like fellow creditors, France will cancel $4 billion in default interests, showing its strong commitment to developing fruitful business cooperation with Cuba several weeks after United States reopened its embassy in The Havana.