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Cuba Facts
is an ongoing series of succinct fact sheets on various topics,
including, but not limited to, political structure, health, economy,
education, nutrition, labor, business, foreign investment, and
demographics, published and updated on a regular basis by the Cuba
Transition Project staff.
CASTRO’S FINANCIAL
SUPPORTERS:
FOREIGN FINANCING TO
CUBA, 2005-2006
|
CREDITORS
(by country of origin)
|
FINANCING*
(Estimated,
in U.S. dollars) |
|
Venezuela
(1) |
$2.055 billion |
|
China
(2) |
$1.1 billion |
|
France
(3) |
$461 million |
|
Netherlands
(4) |
$302 million |
|
Spain
(5) |
$296 million |
|
Iran
(6) |
$255 million |
|
Germany
(7) |
$214 million |
|
Russia
(8) |
$213 million |
|
Japan
(9) |
$107 million |
|
Italy
(10) |
$99 million |
|
Vietnam
(11) |
$98 million |
|
Basque Country – Spain (12)
|
$76 million |
|
Austria
(13) |
$62 million |
|
United Kingdom
(14) |
$27 million |
|
Sweden
(15) |
$19 million |
|
Belgium
(16) |
$14 million |
|
Switzerland
(17) |
$3 million |
|
Portugal
(18) |
$1 million |
|
Other - Undisclosed Origin (19) |
$642 million |
|
TOTAL |
$6.044 billion |
|
*Comprises convertible currency
loans from foreign-based banks, government-to-government bilateral
trade credits, and industry financing by foreign suppliers.
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NOTES
1.
Deferred payment (financed or forgiven by Caracas) on 98,000 bpd of
Venezuelan crude oil and refined petroleum products exported to Cuba
in 2005, with a market value of approximately US$1.8 billion. Cf.
Fabiola Sánchez, “Trade with Venezuela ‘grows every day’,” Associated
Press, Havana, April 11, 2006,
http://www.miami.com/mld/miamiherald/news/world/americas/14313095.htm.
Also includes an additional US$255 million in bilateral trade
financing by Venezuelan state-run banks for non-oil exports to the
island. Cf. “Venezuela, Cuba reinforce
trade ties,” Caracas, El Universal, July 10, 2006,
http://english.eluniversal.com/2006/07/10/en_eco_art_10A742039.shtml.
2. China has provided approximately US$500 million to Havana since
2005 for the acquisition of transportation equipment, machinery, and
consumer goods from Chinese suppliers, and committed a further US$600
million in investment funds for a Sino-Cuban nickel mining and
processing venture. Cf. Marc Frank, “Trade with China Primes Cuba’s
Engine for Change,” The Financial
Times, 29 March 2006,
http://yaleglobal.yale.edu/display.article?id=7189; Reuters,
“China Minmetals to form nickel JV in Cuba,” Hong Kong, September 9,
2005.
3. Short-term financing (typically one year) by French banks as of
December 2005. Cf. Bank for International Settlement (BIS),
“Consolidated Foreign Claims of Reporting Banks on Individual
Countries – Immediate Borrower Basis,”
BIS Quarterly Review, 12
June 2006,
http://www.bis.org/statistics/hcsv/panx9b.csv (accessed July
2006), hereinafter cited as BIS
Quarterly Review, June 2006.
4. Short-term financing by Netherlands-based banks as of December
2005. Cf. BIS Quarterly Review,
June 2006.
5. Short-term financing by Spanish banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
6. In April 2006, the Iranian government established a 200-million
euro trade and investment fund for bilateral projects with Cuba
through the state-run Iran Exports Promotion Bank. Cf. IRNA, “Iran,
Cuba sign investment, trade MoU,” Tehran, April 24, 2006,
http://www.irna.ir/en/news/view/menu-237/0604243886220753.htm.
7. Short-term financing by German banks as of December 2005. Cf.
BIS Quarterly Review, June
2006.
8. Russian banks have issued a government-secured, (12-year loan),
US$213 million loan to Cuba’s state-run aviation sector forthe
purchase of five new airplanes. Cf. Sergey Ryzhkin, “Russian Aircraft
Industry to Supply Cuba,”
Kommersant, April 11, 2006,
http://www.kommersant.com/page.asp?idr=1&id=665363.
9. Short-term financing by Japanese banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
10. Short-term financing by Italian banks as of December 2005. Cf.
BIS Quarterly Review, June
2006.
11. Under a bilateral cooperation accord between political allies,
Vietnam supplies the bulk of Cuba’s imported rice with payment terms
of 450 to 540 days and either interest-free or very low interest
financing. The value of Vietnamese commercial credit for Cuba is
based on 400,000 tons of rice per year at an estimated market price of
US$245 per ton. Cf. Vietnam, Ministry of Foreign Affairs,
“Vietnamese, Cuban businesses meet,”
http://www.mofa.gov.vn/en/nr040807104143/nr040807105039/ns041109112150
(Nov. 9, 2004); Reuters, “Vietnam and Cuba cement ties with trade
agreement,” Havana, October 29, 2002.
12. A consortium of Spanish industrial firms based in the autonomous
Basque Country is providing three-year payment terms to Cuban state-owned
enterprises. Cf. EFE, “Empresas
españolas negocian contratos con Cuba por 180 millones de euros,”
Havana, 5 May 2006, Cubanet,
http://www.cubanet.org/CNews/y06/may06/05o4.htm.
13. Short-term financing by Austrian banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
14. Short-term financing by U.K.-based banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
15. Short-term financing by Swedish banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
16. Short-term financing by Belgian banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
17. Short-term financing by Swiss banks as of December 2005. Cf.
BIS Quarterly Review, June
2006.
18. Short-term financing by Portuguese banks as of December 2005. Cf.
BIS Quarterly Review,
June 2006.
19. Short-term financing to Cuba by banks of undisclosed origin.
Cf. BIS Quarterly Review,
June 2006.
The CTP can be contacted at P.O. Box
248174, Coral Gables, Florida 33124-3010, Tel: 305-284-CUBA (2822),
Fax: 305-284-4875, and by email at
ctp.iccas@miami.edu. The CTP Website is accessible at
http://ctp.iccas.miami.edu. |
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