Identifier
Created
Classification
Origin
08MEXICO676
2008-03-07 18:10:00
CONFIDENTIAL
Embassy Mexico
Cable title:
MEXICO RESTRUCTURES CUBAN DEBT, SRE ESPINOSA TO
how-toVZCZCXRO8982 PP RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM DE RUEHME #0676 0671810 ZNY CCCCC ZZH P 071810Z MAR 08 FM AMEMBASSY MEXICO TO RUEHC/SECSTATE WASHDC PRIORITY 0806 INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE PRIORITY RUEHUB/USINT HAVANA PRIORITY 0117
C O N F I D E N T I A L MEXICO 000676
SIPDIS
SIPDIS
WHA/MEX FOR ELIZABETH WOLFSON
PASS TO WHA/CCA
E.O. 12958: DECL: 03/04/2018
TAGS: ETRD ETTC PREL CU MX
SUBJECT: MEXICO RESTRUCTURES CUBAN DEBT, SRE ESPINOSA TO
VISIT CUBA
REF: MEXICO 6005
Classified By: DEPUTY CHIEF OF MISSION LESLIE BASSETT FOR REASONS 1.4(b
) AND (d)
C O N F I D E N T I A L MEXICO 000676
SIPDIS
SIPDIS
WHA/MEX FOR ELIZABETH WOLFSON
PASS TO WHA/CCA
E.O. 12958: DECL: 03/04/2018
TAGS: ETRD ETTC PREL CU MX
SUBJECT: MEXICO RESTRUCTURES CUBAN DEBT, SRE ESPINOSA TO
VISIT CUBA
REF: MEXICO 6005
Classified By: DEPUTY CHIEF OF MISSION LESLIE BASSETT FOR REASONS 1.4(b
) AND (d)
1. (C) Summary. On February 18, 2008, Mexico Bancomext
announced that an agreement had been reached to refinance the
USD 400 million in debt owed by Cuba. President Calderon had
previous stated that restructuring the debt was important to
strengthening ties between the two countries. Foreign
Secretary Patricia Espinosa will be visiting the island on
SIPDIS
March 13-14. Mexican officials expect trade to increase, but
only gradually, as Mexican exports still view the island with
trepidation. End Summary.
2. (SBU) Officials at the Mexican Trade and Export Bank
(Bancomext) recently announced that an agreement had been
reached to restructure the USD 400 million dollars in debt
owed by the state-owned Bano Nacional de Cuba (BNC). The
money was originally provided for export promotion. The BNC
stopped making repayments in 2002 which led to the closure of
Bancomext's offices in Cuba and an increase in already
present tension in the relationship between then president's
Fidel Castro and Vicente Fox. At its worst point, President
Fox expelled the Cuban representative and recalled the
Mexican ambassador from Havana. In May 2006, also during the
Fox Administration, the Mexican government used Italian
courts to recover $35 million in defaulted debt from a Cuban
escrow account held in Italy. At that time the Mexican
government expressed a willingness to use other third country
court systems to recover additional portions of the debt.
3. (C) Lic, Ricardo Dominguez Guadarrama, Head of the SRE
Department covering Cuba, Haiti, and Dominican Republic
confirmed that Espinosa will be visiting the island on March
13-14. He said that there are no current plans for a visit
by President Calderon but did not rule out a future visit. A
possible reciprocal visit between the Mexican and Cuban
Foreign Affairs Secretaries had been discussed during their
meeting on the peripheries of the UN General Assembly, but
was only recently solidified.
4. (C) Bruno Ferrari, director of export and investment
promotion agency, ProMexico, told Econoffs that, despite the
agreement reached between BancoMext and BNC, he did not
expect a rapid influx in export or investment to Cuba. He
said that, in addition to the breakdown in official
relations, Mexican companies had also experienced problems in
their relations with their Cuban counterparts and that there
exists a level of distrust between both sides that will slow
any new growth. He also said that the lack of development in
the country also contributes to Mexican companies'
trepidation at sending pesos there.
5. (C) Comment: President Calderon, has sought to strengthen
ties between the two nations. As reported in reftel,
Calderon has said that he would seek a more constructive and
less confrontational relationship with Cuba than prevailed
under the Fox administration, a sentiment echoed by Foreign
Secretary Espinosa. The debt resettlement package was step
SIPDIS
one towards improving bilateral relations. However, until
Mexican companies feel that the country is a good investment,
a large increase in trade should not be expected. End
Comment.
Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity and the North American
Partnership Blog at http://www.intelink.gov/communities/state/nap /
GARZA
SIPDIS
SIPDIS
WHA/MEX FOR ELIZABETH WOLFSON
PASS TO WHA/CCA
E.O. 12958: DECL: 03/04/2018
TAGS: ETRD ETTC PREL CU MX
SUBJECT: MEXICO RESTRUCTURES CUBAN DEBT, SRE ESPINOSA TO
VISIT CUBA
REF: MEXICO 6005
Classified By: DEPUTY CHIEF OF MISSION LESLIE BASSETT FOR REASONS 1.4(b
) AND (d)
1. (C) Summary. On February 18, 2008, Mexico Bancomext
announced that an agreement had been reached to refinance the
USD 400 million in debt owed by Cuba. President Calderon had
previous stated that restructuring the debt was important to
strengthening ties between the two countries. Foreign
Secretary Patricia Espinosa will be visiting the island on
SIPDIS
March 13-14. Mexican officials expect trade to increase, but
only gradually, as Mexican exports still view the island with
trepidation. End Summary.
2. (SBU) Officials at the Mexican Trade and Export Bank
(Bancomext) recently announced that an agreement had been
reached to restructure the USD 400 million dollars in debt
owed by the state-owned Bano Nacional de Cuba (BNC). The
money was originally provided for export promotion. The BNC
stopped making repayments in 2002 which led to the closure of
Bancomext's offices in Cuba and an increase in already
present tension in the relationship between then president's
Fidel Castro and Vicente Fox. At its worst point, President
Fox expelled the Cuban representative and recalled the
Mexican ambassador from Havana. In May 2006, also during the
Fox Administration, the Mexican government used Italian
courts to recover $35 million in defaulted debt from a Cuban
escrow account held in Italy. At that time the Mexican
government expressed a willingness to use other third country
court systems to recover additional portions of the debt.
3. (C) Lic, Ricardo Dominguez Guadarrama, Head of the SRE
Department covering Cuba, Haiti, and Dominican Republic
confirmed that Espinosa will be visiting the island on March
13-14. He said that there are no current plans for a visit
by President Calderon but did not rule out a future visit. A
possible reciprocal visit between the Mexican and Cuban
Foreign Affairs Secretaries had been discussed during their
meeting on the peripheries of the UN General Assembly, but
was only recently solidified.
4. (C) Bruno Ferrari, director of export and investment
promotion agency, ProMexico, told Econoffs that, despite the
agreement reached between BancoMext and BNC, he did not
expect a rapid influx in export or investment to Cuba. He
said that, in addition to the breakdown in official
relations, Mexican companies had also experienced problems in
their relations with their Cuban counterparts and that there
exists a level of distrust between both sides that will slow
any new growth. He also said that the lack of development in
the country also contributes to Mexican companies'
trepidation at sending pesos there.
5. (C) Comment: President Calderon, has sought to strengthen
ties between the two nations. As reported in reftel,
Calderon has said that he would seek a more constructive and
less confrontational relationship with Cuba than prevailed
under the Fox administration, a sentiment echoed by Foreign
Secretary Espinosa. The debt resettlement package was step
SIPDIS
one towards improving bilateral relations. However, until
Mexican companies feel that the country is a good investment,
a large increase in trade should not be expected. End
Comment.
Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity and the North American
Partnership Blog at http://www.intelink.gov/communities/state/nap /
GARZA