China granted Cuba a line of credit worth 50 million yuan, about US$6.2 million (euro5.2 million), as part of a pact signed during a visit by a senior Chinese Communist Party official, Cuba’s state-run press reported Tuesday.
The line of credit will be used to buy “general materials” from China and carry out several economic projects, the island’s domestic news agency AIN reported.
The official, Luo Gan, is a member of China’s ruling Politburo Standing Committee and he was meeting with several top Cuban officials including Parliament Speaker Ricardo Alarcon and Vice President Carlos Lage.
Luo said his visit was a “reflection of the profound feeling of friendship between the two countries,” according to AIN.
The two nations established official relations in 1960, making Cuba the first Latin American country to create ties with China.
Cuba’s close relationship with the former Soviet Union sometimes led to tense relations with China when the two large Communist powers were feuding. But since the Berlin Wall fell in 1989, political and commercial ties have steadily strengthened. Chinese President Hu Jintao visited the island last year.