Beijing North Vehicle Group Corporation — a subsidiary of NORINCO — reschedules outstanding debt obligations of the Cuban Government

In 2010, Beijing North Vehicle Group Corporation (北京北方车辆集团有限公司) -- a subsidiary of NORINCO -- and the Government of Cuba signed a debt rescheduling agreement.

Under the terms of the agreement, the borrower agreed to make $13.3244 million in semi-annual principal payments and $4.8163 million in semi-annual interest payments between 2011 and 2025 (on January 1 and July 1 of each year).

However, the imposition of U.S. sanctions on the Government of Cuba prevented it from meeting its repayment obligations under the rescheduling agreement. As of 2020, three semi-annual repayments were overdue (i.e. in arrears).

At that time, NORINCO assessed the probability of default to be 85% and projected a financial loss (due to default) of 56.3%.