11 July 2014, 13:37

Putin writes off 90 percent of Cuba's debts to USSR

Putin writes off 90 percent of Cuba's debts to USSR

President of Russia Vladimir Putin has signed a law, in which 90 percent of the debt of the Republic of Cuba to the Soviet Union will be written off, the press service of the Kremlin reports. "Putin has signed a federal law 'On the ratification of the agreement between the government of the Russian Federation and the government of the Republic of Cuba on the regulation of the arrears of the Republic of Cuba to the Russian Federation on loans, granted at the time of the former USSR,' passed by the Duma on July 4, 2014, and approved by the Federation Council on July 9, 2014," the Kremlin said in a statement. 



Earlier, the law was passed by the State Duma and approved by the Federation Council. Cuba will pay the remaining part of the debt (about $3.5 billion) over the next 10 years in equal semi-annual payments.

The first payment must be received on October 25, this year, and the last - on April 25, 2024. Payments will be entered in the dollar account of Vnesheconombank in the National Bank of Cuba.

It is supposed that these funds will be used to finance investment projects in Cuba. Earlier, Zarubezhneft and Inter RAO UES showed interest in these projects.

The Cuban debt includes project covenants that were funded from the state loans of the former USSR, and also interest from the principal debt, accumulated during the period of the loan.

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