Cuba Business

Russia to grant Cuba $36million to finance purchases

Posted October 02, 2006 by publisher in Cuba Business.

Russia will provide Cuba with a 10-year $355 mln loan with interest at 4% per year, Russia’s prime minister said Thursday.

Mikhail Fradkov signed a Russian-Cuban intergovernmental agreement earlier Thursday.

He said the credit will be used to finance the delivery of Russian goods and services to the socialist Caribbean country in 2006-08.

Fradkov said the intergovernmental agreement identified seven areas in which the credit will be used: investment cooperation projects, modernization of Cuba’s energy sector, reconstruction of water conservation facilities and railroads, the design and delivery of air navigation systems, and the modernization of the transportation system.

Member Comments

On October 02, 2006, publisher wrote:

Sweet deal for Cuba.

Cuba has defaulted on billions of dollars to Russia but I guess that’s not bad credit since they can still get a 4% rate.

So, Raul and Fidel, you can’t blame the Embargo too much if Russia is financing more purchases.