Venezuela Transferred $18 Billion to Cuba

Monday, June 2, 2014
Meanwhile, the Cuban economy remains in shambles, which raises the questions:

What has Castro done with all of this money?

What benefits have the Cuban people derived from this money?

From El Universal:

USD $18 billion sent to Cuba in last three-years

The cash flow included lending, donation and investment

The Cuban economy did not collapse in the last decade only because of the input from the Venezuelan government. In three years only, USD $18 billion was transferred in the form of loans, investments or grants.

The government of deceased President Hugo Chávez, and now the administration of Nicolás Maduro, never provided details of uncontrolled outlays. However, little by little, official data from Caracas and Havana have provided an estimate of the alliance paid in cash.

In 2008-2011, approximately USD $18 billion was transferred from Venezuela to Cuba by means of funds, loans and investments. Most of it accounted for payment of services and the onerous Bolivarian philanthropy.

The sum of money arises from data collected as part of a research conducted by the Association for the Study of the Cuban Economy (ASCE), based in the United States. To that aim, the official numbers in Cuba were considered.

"We don't know how much is debt and how much is transfer (gift). The impression is that almost all of it is transfer and the debt, if any, is under very favorable conditions," explained Luis R. Luis, the author of the paper, Ph. D in Economy and a member of the ASCE board of directors.

Most of financial flows to Cuba through 2013 come from Venezuela, yet the breakdown is unknown. "Some must be debt, yet the numbers do not show it," Luis said.