If Cuba loses, it could ultimately cost the island nation billions.A Cuban pilgrim participates in the San Lazaro procession at El Rincon church in Havana, on December 16, 2022.Accusations of bribery, an imprisoned Cuban bank official and Interpol all feature in a high-stakes case against the Cuban government set to start Monday in the United Kingdom's High Court.
This is the first time Cuba is facing legal action for what is estimated to be about $7 billion in outstanding commercial loans from the 1970s and 1980s. If CRF wins this case on this small slice of that debt, it could lead to further lawsuits from creditors with claims rising into the billions. Any unpaid judgments could lead to asset seizures.
Beyond the commercial debt, there are still nearly 6,000 claims outstanding from Americans and American companies whose properties were confiscated by the Cuban government after former leader Fidel Castro came to power in a coup in 1959. There are other costs to consider, too. Thus far, the Cuban government has spent roughly $3 million on legal fees in its defense, and the plaintiffs have spent about $2.6 million. In the U.K., the loser pays the winner's legal fees, so one of the parties will be out nearly $6 million.Also expected to testify is Jeet Gordhandas.
CRF, meanwhile, says in court filings that it first reached out to Cuba 10 years ago to settle the debt but were ignored. The fund also says it didn't file suit until it made multiple attempts over the decade to meet with Cuban authorities.
The Cuban government is not facing the claim, it is Cuba. Hence we are clear that the peoples of Cuba will face the consequences of that claim in the unlikely case that the vulture fund prevails, right?