In the latest Brazil news, the country eyes new Investment in Cuba amid debt talks. President Lula visits Cuba to address the US$520 million debt issue.
Lula’s chief foreign policy advisor, Celso Amorim, said, “We can invest in Cuba, even with other countries.”
Brazil has previously funded Cuba and always received repayment. Relations worsening led to Cuba halting payments.
A debt issue now exists. As commonly done among countries, a legal and proper solution, possibly a renegotiation, needs consideration.
The debt comes from a loan from Brazil’s BNDES bank. Construction firm Odebrecht helped use the money to build Mariel Port.
The US$641 million loan came from five deals between 2009 and 2013. A 25-year payback time was part of the deal, sparking debate then.
Amorim points out Cuba missed payments only when relations got rocky. “We now need to find a fair, legal way to handle the debt, maybe by renegotiating,” he stated.
Context
Brazil and Cuba have a history of diplomatic and economic ties. Their relationship dates back decades.
Over the years, Brazil has invested in various Cuban sectors. This includes healthcare, agriculture, and infrastructure.
The Mariel Port project was a significant milestone. It aimed to boost Cuba’s trade capabilities.
However, the project led to disagreements and debates. Critics questioned the fairness of the loan terms and the long repayment period.
Brazil’s BNDES bank often funds international projects. It promotes Brazil’s economic interests abroad.
Odebrecht, the construction firm, also has a global footprint. The company has been involved in projects across Latin America.
Celso Amorim has been a constant figure in Brazil-Cuba relations. He served as foreign minister before becoming a chief advisor.
His role in debt talks shows Brazil’s interest in maintaining ties.