SA writes off R926,8m owed by Cuba

SA writes off R926,8m owed by Cuba
Cape Town, South Africa
17 April 2008 11:25

The Cabinet has approved the cancellation of a R926,8-million debt owed
by Cuba to South Africa, government communications head Themba Maseko
said on Thursday.

The debt arose out of insurance cover provided to Cuba by the Export
Credit Insurance Corporation of South Africa for the export of diesel
engines and pesticides in 1996, he told a media briefing following
Wednesday's regular Cabinet meeting.

"Given the assessment of Cuba's debt position, government is of the view
that Cuba was not in a position to meet its obligations in the
foreseeable future."

Cuba's debt position had the potential to undermine bilateral economic
relations and detracted the two countries from pursuing mutually
beneficial relations in areas such as biotechnology, pharmaceuticals and
eradicating tuberculosis and malaria in Africa, as well as strengthening
south-south relations, Maseko said. -- Sapa

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