Prime Minister Shinzo Abe's visit to Cuba last month should serve as a catalyst for increased economic exchanges and investment from Japan, which in turn will hopefully promote economic and political reforms in the Caribbean country. Cuba is drawing attention as a potential market and investment destination following the historic thaw in its relations with the United States last year. Japan should seek to build sustainable economic ties with Cuba that mutually benefit both nations.
In the first visit to Cuba by a Japanese prime minister, Abe concurred with President Raul Castro on expanding Japanese investment and aid in the field of medical care. Prior to the visit in late September, Tokyo agreed to forgive ¥120 billion out of some ¥180 billion in Cuban debt to Japan. After its revolution in 1959, Cuba's economy suffered for decades under the weight of economic sanctions and hostilities with the U.S. following the severance of diplomatic ties between Havana and Washington. The economic difficulties forced Cuba in the 1980s to halt repayment of its debts.
Interest payments, including some overdue on Cuba's debts to Japan, have snowballed to ¥120 billion from the principal of ¥60 billion. The cancelation will greatly reduce the country's financial burden. The two governments also plan to discuss postponement of paying off the principal. Once the debt problems are resolved, Japan will be ready to extend large-scale yen loans to Cuba. Abe and Castro agreed to hold a deputy minister-level meeting of officials and business leaders in Tokyo in November to discuss specific investment projects.