Monday, March 10, 2008

Profit and Loss

When it comes to paying its quite considerable overseas debt, the Castro regime has what could only be described as a shocking repayment history.

In fact, the regime has simply refused to make any substantial repayments to anyone anywhere in the West for at least 20 years.

As a result, Cuba currently owes about US$13 billion to capitalist countries and another US$22 billion to the old Soviet Union.

So, here is an intriguing story: a
ccording to this media report, representatives of the Korean Export Insurance Corporation are travelling to Havana this week to recoup US$ 31 million that had been owing to a South Korean tyre manufacturer.

The tyres had been delivered to the island in 2001 (more than seven years ago!), but despite many attempts by the Koreans to “persuade Cuban bureaucrats to pay”, the boys in Havana refused. Until now.

And the reason the Cubans are paying at this stage?

The media reports say it's because they need Korean companies such as LG and Samsung to continue to sell them energy-efficient whitegoods, such as refrigerators and washing machines, on credit.

They also need the Koreans to continue delivering portable power generators – the same generators that are supposed to keep Cuban’s ageing and resources-starved electricity grid from collapsing entirely.


Blogger Laz said...

An excellent post. I made a link to my blog. Thanks.

11:34 am  

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