Cuba in liquidity crunch.(CUBA)

0 Comments | Caribbean Update, July, 2009

Cuba has rolled over 200 million euros in bond issues due in May, as the central bank asked for another year to repay foreign holders of the debt, financial sources in London and Havana said, reports Reuters (June 10, 2009). The move is another sign the nation is suffering a cash crisis, as it struggles with sharp declines in revenues from tourism and key exports.

The two-year eurodenominated bonds of 150 million euros and 50 million euros that were rolled over were issued on the London Stock Exchange on May 3, 2007, at interest rates of 9% and 8.5%, respectively. Stuart Culverhouse, chief economist at London-based brokerage firm Exotix, said there was apparently a high participation rate in the rollover by the bondholders.