Russia is going to write off 90 percent of Cuba’s $32 billion Soviet-era debt as part of a deal to end a 20-year dispute, according to diplomatic sources cited by Reuters.
Prime Minister Dmitry Medvedev agreed to write off the island’s debt during a visit to Havana in February 2013, stressing details would be finalized by the end of the year.
In October, the two sides announced a refinancing agreement that requires Cuba to pay Moscow $3.2 billion over ten years, and Russia would forgive the remaining $29 billion, which is $20 billion in debt plus service and interest. Between $5-6 billion of Cuba’s remaining foreign debt is non-Soviet.
The deal still needs to be agreed on by Russian lawmakers, and there has been no comment from Cuban or Russian officials.