Russia to cancel Cuba’s $29 billion of Soviet debt

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 signed a refinancing agreement that requires Cuba to settle 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, according to Reuters. Between $5-6 billion of Cuba’s remaining foreign debt is non-Soviet.

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