ZCZC
BCN-09
CUBA-ECONOMY-DEBT
Cuba says unable to pay off debt commitments in 2019
HAVANA, Dec 22, 2018 (BSS/AFP) – Cuba’s government admitted on Friday that
it won’t be able to pay all its debt commitments in 2019, blaming Hurricane
Irma and United States sanctions for its woes.
“In 2019, we’ll have less credit than the amount of debt we’re planning to
pay,” said finance minister Alejandro Gil during a parliamentary session.
“There will be a level of debt that we won’t be able to pay next year and
this will affect the performance of the economy.
“There is a high level of debt in the economy that creates daily tensions.
“We’ve been looking for specific solutions but it’s affecting the
harmonious performance of the economy.”
Gil insisted that Cuba’s new loans would be marginally lower than the
existing debts it will pay off, meaning that “we won’t be increasing our
level of debt.”
Cuba recently defaulted on a part of its debt with Brazil and is behind in
reimbursing another portion related to the construction of a port and
purchase of food.
Havana blames these delays on the effects of Hurricane Irma, which made
landfall in early September 2017, and a hardening US embargo that hinders its
international financial transactions.
Cuba’s government has said the economy grew by 1.2 percent in 2018.
BSS/AFP/HR/0930