The Republic of Cuba and the Banco Nacional de Cuba (BNC) are facing legal proceedings before the British High Court of Justice for a debt recovery claim.
according to a note signed by the Superintendency of Central Bank of Cuba (BCC) and published on its website, the claimant is CRF I Limited, a vulture fund incorporated as a trading company offshore in Grand Cayman.
? Informative note from the Superintendence of the Central Bank of Cuba
???https://t.co/R3voJm5ayr@marta_wilson@mayobrebcc@aquinbeta@RosaCantillo8@GarridoYaisel pic.twitter.com/yB7ceePkIW— Central Bank of Cuba (@BancoCentralCub) January 13, 2023
The BCC statement adds: “As is known, vulture funds buy in the secondary market, at auction prices, debts issued by countries, to demand immediate payment of 100% under threat of legal action.”
In the legal proceedings, it is decided whether CRF is a creditor of the BNC and Cuba (in the amount of 72 million euros), something that is refuted by the defendants.
The statement specifies that “the object of this procedure is public debt because it was contracted by the BNC before 1997, when it had functions of the Central Bank.”
And he specifies that “the BNC does not have the power to act on behalf of the Cuban government. Nor to approve the assignment of public debt without the prior authorization of the Ministry of Finance and Prices and the Council of Ministers, given that the BNC cannot, in any case, authorize the assignment of guarantees granted by the State (sovereign guarantees)”.
The note highlights that the BNC and Cuba “have never ignored their debts and have always maintained an interest in negotiating with their legitimate creditors. Both the BNC and Cuba are involved in the procedure and will defend their rights.”
The Superintendence of the BCC indicates that “as a technical body, with autonomy to exercise its functions assigned by Law, related to the inspection, surveillance and control of institutions that carry out financial and banking activities in the country, it will timely inform the results of this process.
On the website of the Central Bank of Cuba is established that the BNC was created by Law No. 13 of December 23, 1948 as the central bank of the State, with organic autonomy, independent legal personality and its own assets.
Finally, it is indicated that this banking institution has been developing an active work in the negotiations and signing of agreements related to the renegotiation of the debt, obtaining new credits with foreign banks and institutions with better financial conditions.
