ID :
22947
Mon, 10/06/2008 - 21:25
Auther :

Japan likely to resume insurance on exports to Cuba

TOKYO, Oct. 6 Kyodo - A government-backed body is likely to resume accepting new applications for trade insurance on exports to Cuba as early as December, Japanese officials said Monday.

Nippon Export and Investment Insurance and Cuba's central bank have struck a
basic deal that the Japanese government-backed body will insure up to a total
of 6 billion yen in 2009 for business with Cuba, the officials said.
The underwriter suspended accepting new trade insurance applications for
business with Cuba in August after the central bank failed to pay for Japanese
imports on time.
The insurer, also known as NEXI, will formally decide on the resumption after
seeing whether the central bank will be able to pay part of its liabilities,
the officials said. In 2008, it insured a total of 22 billion yen in connection
with Japanese exports to Cuba.
The central bank, which handles settlements for Cuba with Japanese firms, has a
debt of about 25.5 billion yen from NEXI.
The central bank has promised to pay its debt to NEXI over the next three to
four years, the officials said.
Cuba was cash-short on the back of rising fuel and food prices, according to
the officials.

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