China agrees to restructure Cuba’s debt and provides it with new credit

China has agreed to restructure Cuba’s debt, as well as provide new trade and investment credits to the country in difficulties, during a meeting in Beijing between the leaders of the two communist countries.

Cuban Economy Minister Alejandro Gil announced that the other party has also donated $100 million to help his country cope with shortages of basic necessities and the energy crisis exacerbated by Hurricane Ian, which caused devastation in Pinar del Rio province in western Cuba, late September.

Khel’s statement has arrived in an interview with media state, accompanying President Miguel Diaz-Canel on his return home at the weekend from a tour that included Algeria, Russia, Turkey and China.

According to analysts and diplomats, Chinese trade and investment have slowed in recent years due to Cuba’s default on debt payments that preceded its restructuring, a situation exacerbated by the tightening of US sanctions, the pandemic and shortages of the local economy.

“We will find mutually acceptable formulas for debt settlement and restructuring,” Khel added.

Analysts estimate the debt in billion dollars, but there is no official data.

Cuba has not declared its foreign debt since 2019, and it was $19.6 billion.

According to the Cuban government, China is the country’s most important trading partner after Venezuela, although trade volume fell from more than $2 billion in 2017 to $1.3 billion last year.

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