After a 14 year hiatus, there are signs that Cuba is ready to re-enter the world of international finance by reopening debt negotiations with the informal group of wealthy creditors known as the Paris Club, Reuters reported yesterday. Any negotiations would involve the restructuring of nearly $18 billion in debt—which does not include about $18 billion worth of Soviet-era debt forgiven by club-member Russia in 2013—and increased transparency on the part of Cuban government officials.
While the Paris Club includes the U.S. amongst its 19 members, the a special working group on Cuba that would participate in debt negotiations excludes the United States. Since 2011, Cuba has restructured its debts with China, Japanese commercial creditors, Mexico, and Russia, meeting its debt repayment obligations to those countries under the new plans.
Although the U.S. will not be able to participate in the debt negotiations, a recent report released by Americas Society/Council of the Americas’ Cuba Working Group details steps that President Obama can take to ensure that the U.S. isn’t excluded in financially supporting Cuba’s emerging non-state sector, despite the constraints of the 54-year-old embargo.