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Russia’s Federation Council ratifies agreement on 90% debt relief for Cuba

The remaining 10% will be paid within 10 years

A view of Havana ITAR-TASS/Andrei Babushkin

A view of Havana

© ITAR-TASS/Andrei Babushkin

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Part of the indebtedness, which is not written off, is 10% that, as it was agreed, will be invested in Cuban economy. We are interested in these investments to be as effective as possible

Sergei Lavrov

Russia's Foreign Minister

How Cuba will pay the debt

The agreement envisages that 90% of the indebtedness ($32 billion) will be written off.

The remaining 10% (over $3.5 billion) will be paid within 10 years in twenty equal 6-month payments in accordance with the schedule. The first payment is expected on October 25, 2014 года, and the last — April 25, 2024. The payments will be transferred to a special US dollar account opened by Vnesheconombank (VEB) in the National Bank of Cuba.

These funds are meant to be used for funding investment projects in Cuba, including environmental initiatives chosen by Cuba in accordance with the plan of economic and social development. Russia’s state-controlled oil company Zarubezhneft and electricity trader Inter RAO UES have already displayed interest in the projects.

Tags

Foreign policy Federation Council Cuba VEB Trade & Cooperation

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