Completed Development AidData Chinese Aid

Chinese Government provides $2.83 billion of debt forgiveness in 2016 (Linked to Record ID#39195)

$2.83M USD

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Cuba
Country	Cuba
Start Date	Jan 01, 2016
End Date	Feb 23, 2033
Duration	6,263 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`54691`

Grant Description

In 2016, the Chinese Government reportedly forgave 42.7% ($2.83 billion) of the Cuban's Government's outstanding debt obligations (worth $6 billion).

The Chinese Government reportedly rescheduled the remaining 52.8% of the Cuban Government's outstanding debt obligations (worth $3.17 billion). The exact terms of the restructuring are unknown. However, one source suggests that 5-years of additional grace was provided as well as an interest rate reduction.

The 2016 debt forgiveness is captured via Record ID#54691. The 2016 debt rescheduling is captured via Record ID#39195.

📋 Staff Comments

The Cuban Government's 2016 debt cancellation agreement with the Chinese Government came shortly after the Cuban Government rescheduled its debts with Paris Club creditors in December 2015. The 2015 Paris Club agreement with the Cuban Government, seen by Reuters, forgave $8.5 billion of the Cuban Government's outstanding debt obligations (worth $11.1 billion). These obligations resulted from debts that the Cuban Government defaulted on in 1986, plus charges. Under the terms of the 2015 agreement, repayment of the outstanding debt in annual installments was back loaded through 2033. In exchange, the Cuban Government agreed to pay the remaining principal ($2.6 billion) that it owed Paris Club creditors since its 1986 default over an 18-year period. The Paris Club is an informal group of creditor governments from Australia, Austria, Belgium, Britain, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Russia, Spain, Sweden, Switzerland and the United States.
As of October 2020, Recardo Cabrisas (Ricardo Cabrisas) was Cuba's chief debt negotiator.
Given that most if not all of the loans that the Chinese Government issued to the Cuban Government between 2000 and 2016 had not reached their maturity dates at the time that this act of debt forgiveness took place, there is a low level of risk that the loans forgiven are captured as separate transactions in AidData's dataset. As such, the risk of double counting is low and AidData has not assigned the transaction to the umbrella category. However, this issue warrants further investigation.
The Chinese Government's 2011 debt restructuring of Cuban debt is captured via Project ID#39195.

📚 Sources & References

Can Cuba Meet its Foreign Debt Repayments?
Cuba Reaches Out to Partners Far and Wide to Hedge Against U.S. Engagement
China condona deuda a Cuba en visita de primer ministro
Firman Cuba y China acuerdos de cooperación en sectores estratégicos
China’s Engagement with Latin America and the Caribbean
Pressured by US sanctions
Cuba struggles to pay its debts
Exclusive: Wealthy creditors give Cuba a pass, but will impose penalties
Exclusive: Cuba nears deal with Paris Club on debt forgiveness
Cuba: What lies beneath the agreements on the debt with the Paris Club and other creditors?
AGREEMENT ON THE DEBT BETWEEN CUBA AND THE GROUP OF CREDITORS OF CUBA
Foreign Finance to Cuba Restarts After Debt Restructuring, ¿Puede Cuba cumplir los acuerdos de pago de su deuda externa?
Los Grandes Retos del Deshielo
Informe: “La economía cubana: situación en 2017- 2018 y perspectivas para 2019”
China: Debt Cancellation
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