SA writes off R926m of Cuban debt

Fri, 18 Apr 2008

Cabinet has approved the cancellation of a R926.8-million debt owed by Cuba to South Africa, government communications head Themba Maseko said on Thursday.

The debt arose out of insurance cover provided to Cuba by the Export Credit Insurance Corporation of SA for the export of diesel engines and pesticides in 1996, he told a media briefing following Wednesday's regular Cabinet meeting.

"Given the assessment of Cuba's debt position, government is of the view that Cuba was not in a position to meet its obligations in the foreseeable future."

Cuba's debt position had the potential to undermine bilateral economic relations and detracted the two countries from pursuing mutually beneficial relations in areas such as biotechnology, pharmaceuticals, and eradicating tuberculosis and malaria in Africa, and strengthening south-south relations, Maseko said.