Since January 23, the High Court of England and Wales, based in London, United Kingdom, has been hearing the lawsuit filed by CRF I Limited (CRF), an entity incorporated in the Cayman Islands, against the Banco Nacional de Cuba (BNC) and the Republic of Cuba (Cuba). The plaintiff claims to be the holder of two financial instruments of Cuban public debt contracted in 1984. The BNC and Cuba argue that, in fact, CRF has never been its creditor, nor is it at this time.
What are the public debts that are the subject of the lawsuit, and at what time were they acquired?
During the 1970s and 1980s Cuba borrowed from sovereign states and commercial lenders. At that time, the BNC was the Central Bank and, in the exercise of its Central Banking functions, it subscribed in 1984 the two public debt financial instruments that are the subject of the lawsuit. In both cases, the BNC acted as borrower, while the lenders were, in one case, Credit Lyonnais Bank Nederland NV and, in the other, Instituto Bancario Italiano.
2.-Did the contracts signed by the BNC comply with Cuban law and international standards?
Yes, both financial instruments complied with Cuban law and international standards for this type of business. In them it was agreed, among other aspects, that if the lenders intended to assign their rights as creditors of these public debts, they had to inform the BNC and Cuba, and obtain their consent. Without the approval of the BNC and Cuba, such assignment has no legal validity.
3.-Is the claimant before the English court the original creditor?
No. The plaintiff CRF is not the original creditor of these instruments, and has never been a creditor of the BNC or Cuba.
4.-Who is suing BNC and Cuba?
CRF, a vulture fund incorporated in the Cayman Islands, a tax haven. Vulture funds are dedicated to buying at low cost the debt of a certain country, through any mechanism, even through illegal acts. This behavior of vulture funds produces harmful effects both for the State in question and for international economic relations.
Why do the BNC and Cuba not recognize CRF as a legitimate creditor?
For three fundamental reasons. First: because being a vulture fund, it would not have been accepted in any case as a creditor. Second: because they resorted to illegal mechanisms to present themselves as creditors. Third: because the illegal mechanisms used involved serious irregularities committed by BNC officials, in violation of the law.
6.-What violations were committed during the alleged process of assignment of the public debt to CRF?
Representatives of the vulture fund proposed to a BNC official to violate the procedures regulated by Cuban law for the approval of the assignment of a public debt. As a result of this proposal, this official knowingly acted contrary to the law, for which he was criminally sanctioned. The document for the alleged assignment, issued by that official, did not comply with the legal requirements established in the agreements subject to English law, as well as in the internal rules of the BNC and Cuban law, for which reason it is null and void.
7.-Who will represent BNC and Cuba in the trial?
A team of English lawyers of recognized prestige, assisted by lawyers from an important Spanish law firm, together with Cuban lawyers of proven professional solidity, and representatives of organizations that have responsibilities in the management of the Cuban public debt.
8.-What has been submitted to the decision of the English court in this trial?
It is a declination of jurisdiction. The Court will determine whether or not CRF is a legitimate creditor of the BNC and Cuba, and therefore, whether or not the English jurisdiction is competent to hear the claim. The trial will concentrate only on this procedural aspect.
Does the possible decision of the English court at this time affect the Cuban economy?
No, this is a procedural question of jurisdiction, so in no case will the financial amounts of the debt be discussed in this hearing. Therefore, whatever the court's decision may be, the finances of the BNC and of Cuba are not compromised in this decision.
10.-What is the position of BNC and Cuba on the payment of their debts and relations with their legitimate creditors?
Both the BNC and Cuba have never disregarded the debts contracted, as long as they are valid, legal, current, enforceable and binding. It has always been in the interest of negotiating with those entities that are legitimate creditors.
Translated by ESTI
