Cuba gets $445 million line of credit from Iran to expand economic ties

Cuba gets $445 million line of credit from Iran to expand economic ties
November 7, 7:43 AMSouth America Policy Examiner Sylvia Longmire

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.

Cuba gets $445 million line of credit from Iran to expand economic ties
(7 November 2009)
http://www.examiner.com/x-17196-South-America-Policy-Examiner~y2009m11d7-Cuba-gets-445-million-line-of-credit-from-Iran-to-expand-economic-ties