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.