Tuesday, December 29, 2015

Japan to forgive ¥120 billion in claims against Cuba

Japan to forgive ¥120 billion in claims against Cuba
DEC 28, 2015

Japan has decided to give up ¥120 billion in claims for damages against
Cuba that arose from the Caribbean country's overdue debt, according to
informed sources.

The government is looking at resuming yen loans to Cuba, following the
restoration of its diplomatic ties with the United States after a break
of 54 years.

Earlier this month, the Paris Club of major creditor countries agreed to
forgive $11 billion of Cuba's $16 billion in debt to 14 countries,
including Japan, Canada, Britain, Spain and Italy.

Japan's decision will reduce Cuba's debt to Tokyo to ¥60 billion in loan
principal and interest. Japan will now request Cuba to repay the amount
over 18 years, the sources said.

Cuba's debt repayments to Japan are expected to begin in fiscal 2016,
which starts in April. While monitoring the progress, the government
will decide when to restart soft loans to the resource-rich nation,
whose economy is forecast to grow.

Cuba defaulted on its debts in 1986. Damages from the delayed
repayments, for which Nippon Export and Investment Insurance holds
claims, ballooned to ¥120 billion over the three decades.

Source: Japan to forgive ¥120 billion in claims against Cuba | The Japan
Times -

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