Spain agrees on debt conversion program with Cuba

Spain agreed with Cuba on a medium- and long-term Debt Conversion Program of up to €375 million, which will focus on economic growth, as well as social development, investment, and debt relief.

Cuban Minister of Economy, Trade, and Business Carlos Cuerpo traveled to Spain to sign the agreement. He emphasized the importance of this program to “finance sustainable development projects in key sectors such as energy, water, and food security, among others.”

Although this program between Spain and Cuba was agreed upon in 2016, it will be activated in 2025, in line with the multilateral agreement reached within the Paris Club in January.

“This measure represents a significant step in Spain’s commitment to innovative debt relief instruments that are geared toward concrete results and effective cooperation. It is also aligned with the objectives of the 4th International Conference on Financing for Development,” they stated.

It is important to note that these debt conversion programs have the primary objective of boosting economic growth and social development in developing countries “through debt forgiveness and its transformation into high-impact investment projects.”

The funds can be used to finance projects implemented by companies from both countries, and through international organizations and specialized organizations with operational experience in the country.

M.Pino

Source: lamoncloa.gob.es

(Reference image source: Tabrez Syed on Unsplash)

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