Cuba may revive Paris Club debt negotiations

HAVANA (Reuters) – Cuba and the Paris Club of wealthy creditor nations are working to resume talks over billions of dollars of official debt in a new sign the communist government is interested in rejoining the global economy.

A Paris Club delegation quietly traveled to Havana late last year to meet with Cuban bank officials, who were prepared with various proposals and appeared eager to strike a deal, according to Western diplomats.

Previous negotiations broke off in 2000 and obstacles remain to reviving serious talks, said the diplomats, who spoke on condition of anonymity because they were not authorized to speak publicly.

They said Cuba must first show creditors its books, which so far it has refused to do. Cuba considers its level of foreign reserves a state secret and publishes scant data on its current account and foreign debt, which it last revealed for 2010.

Still, the diplomats have taken Cuba’s readiness to talk as an indication it may be willing to play by the rules of international finance.

Although it is still a long way off, any deal with the Paris Club would significantly reduce Cuba’s debt, improve its reputation in financial markets and allow it to issue new debt.

For the complete report written by Marc Frank from Havana, click here.