HavanaIn the dispute over part of Cuba’s old debts, socialist Cuba is once again the focus of the international financial world. The Central Bank (BNC) confirmed its willingness to engage in dialogue on Wednesday, but at the same time made it clear that the investment fund CRF I Limited, registered in the Cayman Islands, is not recognized as a legitimate creditor of Cuban national debt.
At the centre of the legal dispute, which is being heard in London courtrooms, is a claim by CRF for 72 million euros, which consists mainly of loans from the 1980s.
British judge Sara Cockerill ruled last year that the CRF was not considered a creditor of the Cuban state for the purpose of debt collection, but admitted the fund’s claim against the BNC (amerika21 reported). As a result, the case was heard again before the Court of Appeal in London on July 24, 2024.
In a statement issued on July 24, BNC said that since the beginning of the proceedings “brought by the vulture fund before the English courts to claim a right to which it is not entitled,” it has stressed that this company is not its creditor and that there is therefore no reason to support such a position.
“The National Bank of Cuba reiterates its constant willingness to dialogue and fulfill its obligations to its legitimate creditors, which is in no way linked to any entity outside its financial instruments, such as CRF I Limited,” the bank added.
Cuba, which has never been sued for outstanding debt, refuses to recognize the CRF as an assignee and accuses the fund of aggressively pursuing payments through legal channels rather than acting as a “responsible creditor.”
So-called “vulture funds” are known for buying up problematic or defaulted loans and then suing for immediate repayment of the entire amount in international courts. Other Latin American countries such as Argentina have also fought similar cases in the past, often in legal battles lasting years.
The development of this case is being closely followed by the international community as it represents an indicator of the management of sovereign debt and the practices of investment funds.
