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Russia to provide €1.2 bln loan to Cuba to finance construction of four power plant blocks

The loan interest rate will be 4.5% per annum

© TASS/Yuri Smityuk

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MOSCOW, October 20. /TASS/. The Russian Government approved the draft agreement on extension of €1.2 bln loan to Cuba for financing of power units’ construction at Maximo Gomez and East Havana thermal power plants. The relevant decree and the draft agreement were posted on Tuesday on the official legal information website.

"The Russian side will extend a state export credit to the Cuban side in the amount up to €1.2 bln to finance construction of one 200 MW power unit at Maximo Gomez thermal power plant and three power units with capacity of 200 MW each at East Havana thermal power plant," the draft agreement said.

The loan interest rate will be 4.5% per annum. Funds are to be repaid in ten years. "The first installment to repay the credit will be made in one year after commissioning date of each power plant but in any case at the latest of February 1, 2025," the draft agreement said.

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