Cuba to compensate Spanish firms that stayed loyal in “difficult years”

Cuba to compensate Spanish firms that stayed loyal in "difficult years"
Havana makes pledge to Spain's top trade official as he leads investors'
delegation
JUAN JESÚS AZNAREZ Havana 17 ABR 2015 - 14:47 CEST

The Cuban government has told Spain that it plans to pay compensation to
Spanish companies that continued doing business with the island "in the
difficult years," in spite of the US trade embargo against Havana.

The pledge was made to Jaime García-Legaz, Spain's secretary of state
for trade, who this week has been leading a delegation of Spanish
business people representing 43 companies to Cuba in search of
investment opportunities.

The Economy Ministry approved new financial incentives for people who
want to invest in Cuba
Although he did not mention the names of the companies penalized because
of the US embargo – the Meliá hotel chain was one of them – García-Legaz
said some of the firms lost "a considerable amount" by continuing to
operate in Cuba knowing they could be sanctioned.

"Top government officials have underscored something very important,
which is that they are not going to forget the companies that were
working here during the difficult times," he said during a farewell
reception at the Spanish Embassy in Havana. "I think that says a lot on
their behalf."

Buoyed by the re-establishment of diplomatic relations between the
United States and Cuba and with hopes that the more than 50-year-old
trade embargo will be lifted, some Spanish chains are looking to open
new four- and five-star hotels on the Caribbean island and modernize
their existing facilities.

A massive influx of American tourists is expected in the coming months
when Washington starts lifting more restrictions on the decades-old Cuba
travel ban it imposed on US citizens. But the Cuban government is
unlikely to have enough hotel rooms to accommodate all these new visitors.

Spain's Economy Ministry approved new financial incentives for people
who have wanted to invest in Cuba but lacked the necessary funds,
García-Legaz explained. He described his delegation's visit as "very
productive," and said the final results would be ironed out in the
coming weeks or months. Cuba and Spain also agreed to hold periodic meetings

Along with the Economy Ministry's new incentives, the Bank of Spain has
also lifted restrictions on lenders who finance Spanish investments in Cuba.

Cuba reportedly owes the CESCE (Spanish Company for Insured Credit for
Export) around €2.3 billion, according to Spanish government sources.
CESCE has resumed short-term coverage for Spanish businesses in Cuba
after it stopped covering investors in 2000 because of the size of the debt.

García-Legaz said the final figures over Cuba's debts with Spain and
other nations would be negotiated through the Paris Club. Both
delegations will have two weeks to come up with their own numbers.

Source: Cuba to compensate Spanish firms that stayed loyal in "difficult
years" | In English | EL PAÍS -
http://elpais.com/elpais/2015/04/17/inenglish/1429261322_723624.html