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Cuba gets $445 million line of credit from Iran to expand economic ties
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Cuban MoT Sierra and Minister Mehrabian (PressTV)
Iran has agreed to increase its existing line of credit to Cuba from 200 million euros to 500 euros, the equivalent of a $445 million increase, said Iran's minister of Industries and Mines Ali-Akbar Mehrabian. According to PressTV, the additional credit is meant to finance quick-return projects.
The Memorandum of Understanding that detailed the credit extension was signed between Cuban and Iranian officials at the end of their 14th joint economic cooperation committee meeting in Havana.
Mehrabian says the line of credit will also provide Cuba with facilities for buying Iranian goods and engineering services. He says Tehran is ready to expand its economic ties with Havana.
Cuba’s economy is in even more dire straits than usual, due to the global economic crisis. The island’s government recently reported its exports had declined by 36 percent in the last year.
Cuba has also been denied credit by several countries and international organizations like the World Bank because of its historical inability to repay loans.
Economic cooperation between Cuba and Iran has been growing steadily in the last few years, adding to the fears of observers who are concerned over Iran’s growing footprint in the Western Hemisphere.
Many others believe Cuba—and other countries in the region with ties to Iran—should be free to engage in agreements with any country in the world, free of international criticism.
Media reports did not indicate what kinds of Iranian goods Cuba might buy with the credit. Engineering services would likely take the form of assistance in repairing Cuba’s crumbling infrastructure.
Reports also did not say what the terms of repayment would be.
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