MercoPress, en Español

Montevideo, April 20th 2019 - 19:08 UTC

Cuba and Venezuela default on Brazilian development loans

Thursday, December 27th 2018 - 05:27 UTC
Full article 3 comments
Following Venezuela and Mozambique, the Cuban government defaulted on its payments to BNDES, in a credit line insured by the Brazilian Treasury Following Venezuela and Mozambique, the Cuban government defaulted on its payments to BNDES, in a credit line insured by the Brazilian Treasury

After defaults in Mozambique, Venezuela, and Cuba the Brazilian government froze credit lines for new exports, a measure that will affect mostly small and medium-sized businesses. The Brazilian Treasury Department will spend US$ 6 million to reimburse BNDES (National Bank For Economic and Social Development) for Cuba's default

Following Venezuela and Mozambique, the Cuban government defaulted on its payments to BNDES, in a credit line insured by the Treasury in the case of nonpayment.

The amount is from an installment due in July, which Cuba paid partially. The Cubans paid US$ 4 million from the US$ 10 million that were due.

During the Lula and Rousseff administrations, the above mentioned countries hired large Brazilian contractors for infrastructure works.

One example is the modernization of the Mariel Port in Cuba, performed by Odebrecht.  These countries also purchased buses, industrial goods and foodstuffs using the credit line.

When defaults happened, the Brazilian Treasury had to pick up the tab.

The Brazilian government will spend almost US$ 400 million to cover foreign countries' defaults in 2019, and that will cause a shortage of money for new credit lines for Brazilian companies.

Top Comments

Disclaimer & comment rules
  • :o))

    As always, the Brazilians are pleased+eager to foot the bills!

    Dec 27th, 2018 - 03:13 pm +1
  • Jack Bauer

    The “Brazilians”, i.e., the PT........they got their share, so why should they care ?

    Dec 29th, 2018 - 03:33 pm 0
  • :o))

    @JB:

    REF: “During the Lula and Rousseff administrations, the above mentioned countries hired large Brazilian contractors for infrastructure works”:

    Everyone but the govts [past+present] know, how the millions vaporized [still “investigating”?]. That's why there aren't serious efforts made to retrieve the stolen wealth - no pressure on the crooks to return the dough - beyond the laughable attempts of offering generously, the Cosy 5-Star Cells only to a few of the privileged crooks [+ wasting more money in doing so]. With time, the Car-Wash Operation may conveniently evaporate too!

    Jan 04th, 2019 - 09:48 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!