Russia Grants $355 Mln Loan to Fidel Castro

Kommersant ^ | Sep. 30, 2006

[Lukasz]

Russia has given Cuba a $355 million loan, hoping for a better future for Cuba without Fidel Castro. Russia also looks forward to settling Cuba’s $26 billion debt to the USSR which has not been discussed for a long time. Russian Prime Minister Mikhail Fradkov finished his visit on Cuba yesterday where he discussed clearing Cuba’s $166 million debt before Russia. The prime minister, however, did not raise the issue of the $26 billion debt to the Soviet Union. The Russian government believes that this matter should be negotiated only after Fidel Castro’s regime has changed. Fidel Castro’s government stopped any debt payments to Russia in 1999.

Mikhail Fradkov met Cuba’s Vice-President Raul Castro and wished Cuba’s people to see the Commandante well soon. Cuba’s solvency seems to improve as Fidel Castro’s health is worsening. China has recently offered Cuba a large inter-state loan. Meanwhile, Canadian investors have gained the right to develop the nickel deposits that two Russian companies tried to buy three years ago. Venezuela, India, Argentina and Spain are eager to take part in developing oil deposits on the Cuban shelf.

Russia has bough a pass to this club of Cuba-lovers by a new loan. What is more, the time for Cuba to re-pay $166 million debt to Russia has been prolonged by 10 years. Cuba is expected to use the new $355 million loan in the next two years. This loan as Cuba’s old debts is to be cleared in 10 years with 4-year period of grace and a 5-percent annual interest rate.

Apart from solving debts problems, Russia should revive its economic cooperation with Cuba, Mikhail Fradkov believes. Commodity turnover with Russia was only $186 million in 2005, official data show.

[Jack Hammer]

Throwing bad money after worse.

[floridavoter2]

Does anyone think Russia will continue its push toward democracy?? Some would say thats what they are now but Russia seems to want to hold onto its past leanings.

[Eric in the Ozarks]

The concept of "sunk cost" hasn't reached the Kremlin, obviously.

[Leisler]

Why should the slaves of Cuban communism have to pay the old debts of the Communist thugs?

[yankeedame]

The concept of "sunk cost" and "non preforming loans" hasn't reached the Kremlin, obviously.

[Lukasz]

Why should the slaves of Cuban communism have to pay the old debts of the Communist thugs?

I know that for example Poland repaid its communist era debt to US.

[Cheburashka]

Well, there's another $355 million the Russians will never see again.

I am so glad the U.S. has a trade embargo on Cuba. Otherwise we would continuously be hearing from some New York City banker who wants to lend money to Castro, then from his successor who needs a federal bailout when Castro doesn't pay.

Let the Canadians, Europeans, Japanese etc. throw their money down that rat-hole.

[Leisler]

It is an odd, anti-freedom notion. Under this if Germany was just Hitler and slave labor, Hitler dies, and the ex-slaves are responsible?

[Lukasz]

I agree, I would say that if you loan cash to communist or other kind of repressive regime, it is your problem if such regime would collapse…

[Tailgunner Joe]

Putin admires Castro's "authoritative" governing style.

Russia's Putin wishes Castro a happy 80th birthday - "You are well known in Russia as one of the most authoritative and outstanding political leaders today."