By Mike Cohen | Bloomberg News

South Africa’s Cabinet agreed to cancel 926.8 million rand ($117 million) owed to it by Cuba because the country was unable to repay the debt.

“This debt arose out of the insurance cover which was provided to Cuba by the Export Credit Insurance Corp. of South Africa Ltd. for the export of diesel engines and pesticides in 1996,” government spokesman Themba Maseko told reporters in Pretoria today, following the Cabinet’s bi-monthly meeting.

“Given the assessment of Cuba’s debt position, government is of the view that Cuba was not in a position to meet its obligation in the foreseeable future,” Maseko said.