Cuba tells creditors debt grew by $1.1 billion

Cuba tells creditors debt grew by $1.1 billion
Fri Sep 5, 2008 6:12pm EDT
By Marc Frank

HAVANA, Sept 5 (Reuters) - Cuba's central bank has told creditors the
country's foreign debt increased by $1.1 billion in 2007 to $16.5
billion, sources close to Cuban efforts to reschedule some official debt
said this week.

The increase came in Cuba's so-called "active" debt, on which it pays
interest and principal, which rose from $7.8 billion in 2006 to $8.9
billion.

Additional official and bank debt accounted for the increase.

Cuba's active debt includes around $4.5 billion in official debt owed to
other governments, $2.5 billion in supplier debt owed to traders, and
bank debt of $1.86 billion owed to foreign financial institutions.

Cuba's active debt is comprised of money borrowed since the 1991
collapse of the Soviet Union. Its "inactive" debt is the debt it is not
paying interest on and which was built up after Cuba defaulted on its
obligations in the 1980s.

Cuba reported a $488 million balance of payments surplus in 2007, but
higher costs for food and fuel imports this year, and lower prices for
its main export, nickel, have led it to seek some restructuring with
Japan and other creditors.

Cuba is not a member of the International Monetary Fund, World Bank or
other multilateral lending institution.

Cuba last reported its inactive debt as $7.6 billion in 2006.

The central bank said there was little change in that part of the debt,
the sources said.

Venezuela has replaced the Soviet Union as the leader in supplying oil
and finance to Cuba, with China in second place. (Editing by Jeff Franks
and Leslie Adler)

http://www.reuters.com/article/bondsNews/idUSN0519102820080905?sp=true