India to extend Line of Credit to Cuba to meet its food shortage

India to extend Line of Credit to Cuba to meet its food shortage

HAVANA, April 11 India is soon going to extend Euro 100 million Line of Credit (LOC) to the Caribbean nation Cuba. Confirming this, a senior officer told Financial Express Online “Talks are in advanced stages to finalize the LOC of euro 100 million to Cuba. It is being extended in an effort to help the country to meet its food grain shortage and  more.”

Adding, “The LOC is expected to be handed over later this month.” Once the agreement is finalized, food grains and other edible goods can be exported to that country. Besides wheat, rice, beans, such as chickpeas or mung, and black or red beans are also of interest to the Caribbean nation.

Previous LOC

India recently provided Cuba with a Line of Credit worth 75 million USD to help with the installation of solar panels. The increased Lines of Credit are just a part of the burgeoning amicability towards LAC. India and LAC are on a path of development and find natural partners in each other. This is apparent in the changing dynamics of their relations.

In an exclusive interaction with Financial Express Online recently, the ambassador of Cuba Alejandro Simancas Marín said that several feasibility studies have been carried out which would offer practical opportunities for Indian companies to invest in Cuba.

According to him, the food industry, sugar, renewable energy sectors, agriculture, and light industry are areas where Indian companies have opportunities. The Mariel Special Economic Zone in Cuba offers facilities for investors and serves as a gateway to not only Latin America but also to the Caribbean.

A bit of history

In the wake of the Soviet Union’s collapse in the early 1990s, it was food grain and wheat from India that had helped Fidel Castro’s regime. That gesture came to be known as the “Bread of India’’ and it continues to hold a special place in the minds of the Cuban leadership and people.