Friday, January 27, 2023

Cuba ignores authority of “vulture fund” on public debt

HAVANA ( Associated Press) – Cuba assured Friday it would ignore the rights of an investment firm buying the island’s public debt; The company filed a lawsuit against the island’s national bank before an English court.

In a statement, the superintendence of the Central Bank of Cuba (BCC), the first official since the process became known late last year via foreign media, indicated the case would be worth $72 million.

The trial is taking place in the British High Court and is set to determine whether the complainant, the CRF firm, is a creditor of the Banco Nacional de Cuba (BNC) and Cuba, explained the official note.

The lawsuit was filed by CRF I Limited, a Grand Cayman-based company, while the said BNC served as a central bank until its dissolution in the late 1990s and its replacement by the current BCC.

“The BNC and Cuba have never ignored their debts and have always maintained their interest in negotiating with their legitimate creditors,” he said in a note published on the official CubanDebt website.

The statement described CRF as a “vulture fund”, which is a company that buys second-hand assets at low or auction prices that are deemed difficult to recover.

The publication did not specify who is the initial owner of the loan.

According to the island side, the demand would not proceed because the BNC would not have the power to act on behalf of the Cuban government – ​​which issues public debt – nor to act without the prior consent of the Ministry of Finance and the Council. ministers. Nor is it competent to authorize the operation of guarantees.

Nation World News Desk
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