Foreign investors and businesses in Cuba are getting worried as the state-run banks on the island explain that they have little foreign currency for withdrawals and international transfers. Could the country be near insolvency? On top of low nickel prices, the hurricanes at the end of 2008, and the current global economic downturn, declaring insolvency could be disastrous for the Cuban economy. If Cuba reveals that it is unable to pay its debts on time, it will only drive away foreign businesses and potential future investments—a negative feedback loop.
Cuban authorities have not made any public statement as to the severity of the situation, and indeed rarely comment on economic developments in the country. Now would be a good time to speak up, if businesses should not be worried.
Read the Reuters report here.
Edited by G. John Ikenberry. Proposed Essay Topics 1) American Foreign Policy and the Future of Multilateralism Over the postwar decades, the United States played a leadership role in building multilateral regimes and institutions across a wide range of policy areas. It was a founder of the United Nations and champion of the Bretton Woods […]
U.S.–China Relations: Competition or Cooperation? The U.S. and China stand at the center of today’s most consequential global relationship—one that shapes trade, technology, security, and the future of international leadership.Great Decisions: U.S.–China Relations, a free classroom resource from the Foreign Policy Association, helps students explore the history, tensions, and interdependence between these two nations through […]
Dive into the essential topics shaping our world with Great Decisions 2025 E-book editions! Whether you’re seeking to stay ahead in international trends or join engaging debates, Great Decisions 2025 is your passport to understanding. Find your preferred e-book format and retailer below to get started: Barnes and Noble – Read on your Nook or any compatible device.Kobo – For […]
