A case heard at Britain’s High Court, expected to last eight days, began on 23 January in which CRF I Ltd, registered in the Cayman Islands, is suing the Cuban state and central bank for €72m (£63.5m). It claims it is owed principal and overdue interest on loans dating back to the 1980s.
Cuba does not recognise the claim; it has no relationship with CRF. The loan agreements were originally made in 1982 with the Dutch Crédit Lyonnais and L’Istituto Bancario Italiano, and were denominated in deutschmarks, a currency which no longer exists. CRF purchased the debt in 2009 from Industrial and Commercial Bank of China, in a deal which Cuba asserts was unauthorised.
CRF is part of the London Club of private speculators, ‘vulture funds’, founded in 1976. London Club members purchase weak or defaulted debt, often decades old. They typically wait for the debt to appreciate in value so that it can be sold for a profit, or reach a settlement with the debtor. In times of political and economic crisis for debtors, the creditors smell blood and turn up the pressure. After Cuba ignored attempts by London Club members to offer ‘deals’ on $1.4bn of debt in 2018 and 2020, CRF decided to take its chances in court. If it wins, it could trigger a feeding frenzy by other London club creditors which claim $7bn of historic Cuban debt. Additionally it could lead to further litigation to freeze Cuban assets in Britain.
On 24 January the RCG and RATB joined Cubanos en UK, Papua Militant International, Plataforma 12 de Octubre, Socialist Appeal, the CPB, the YCL and the Communist League to rally outside the High Court and Cuban embassy. We will continue to demonstrate outside the High Court in solidarity with Cuba. No to vulture funds!
Write off third world debt!
FIGHT RACISM! FIGHT IMPERIALISM! 292 February/March 2023
