Finland and Cuba agreed on debt adjustment

A bilateral agreement pertaining to the State Guarantee Fund’s arrears of EUR 37.8 million from Cuba was signed in Havana on 17 March 2016. The arrears stem from export credit guarantees granted 30 years ago.

The agreement was signed by Under-Secretary of State Pirkko Hämäläinen and Vice President of the Council of Ministers of Cuba Ricardo Cabrisas Ruiz. The bilateral agreement complements the arrears clearance negotiated in Paris on 10–12 December 2015. 

According to the agreement, Cuba repays the principal and contractual interest, in total EUR 7.7 million, within 18 years. The late interest that has accumulated is cancelled. However, cancellation of the late interest requires that Cuba repays the principal and interest as agreed. In summer 2015, Cuba paid its old, short-term arrears associated with trade finance contracts. The agreement now concluded continues this favourable trend.

An important step for trade between Finland and Cuba

The agreement that has now been signed is an important step for promoting trade between Finland and Cuba.  “Finnvera has already made guarantees available for small export transactions with Cuba and keeps a close eye on the country’s development as a potential trading partner,” says Senior Adviser Mika Relander.

The State Guarantee Fund is organised under the Ministry of Employment and the Economy. Its receivables stem from export credit guarantees granted by Finnvera’s predecessors. Finnvera manages the receivables on behalf of the fund.

Additional information:
Mika Relander, Senior Adviser, tel. +358 29 460 2725