CUBA TO PAY $270 MILLION DEBT USING BOOZE!!!
It is interesting to note that the island nation is now cash-strapped and they want to pay their debts using alcohol beverage (rum) and pharmaceuticals. This is an equivalent of Kenya paying her debts using beers of Tusker from the Kenya Breweries Limited.
A Czech republic newspaper report that last year, the government imported 892 tonnes of Cuba booze at a cost of $17 million. Now, if the Cuban government pays their debt of $270 million using booze, then the Czech Republic will have a stock of rum to last them 15 years.
It is noted that pharmaceuticals may not qualify as a form of payment due to the stringent regulations set by European Union (EU).
During the Soviet era, most communist countries practiced barter trade. For instance, on many occasions Cuba exchanged sugar with soviet fuel.
During the cold war, Cuba accumulated lots of debts. In 1980’s she defaulted on them. The country has been operating under stressful trade conditions including embargoes and being excluded from the World Bank and International Monetary Fund (IMF) since 1960s.
It has been reported by Paris Group that Cuba owes its members an estimated $11 billion. Cuba has to pay these debts before it is admitted in the Bretton Woods organizations. Consequently, She has committed to pay $2.6 billion over the next 18 years. On the other hand, Russia has written-off 90 percent of her debts.
It is going to be merry!