Cuba's Deputy Foreign Minister Carlos Fernandez de Cossio proposed this week a lump-sum settlement mechanism for certified claims on properties nationalized after the Cuban Revolution. Drawing on international precedents, the approach aims to resolve the hemisphere's oldest dispute and potentially end the US embargo. Experts like Richard Feinberg have outlined feasible compensation plans.
The US Foreign Claims Settlement Commission certified nearly 6,000 legitimate claims worth a principal of $1.9 billion for properties nationalized by the Cuban government between 1959 and 1961. With 6% annual simple interest, the debt exceeds $9 billion per Bloomberg estimates; using US Treasury bill rates, accumulated interest since 1960 reaches about $5.1 billion. Over 5,000 individual claims—85% of the total—account for just $229 million, while 899 corporations hold 88% of the value, including majors like ITT, Exxon, and Texaco. The ten largest claims total nearly $960 million, such as the Cuban Electric Company and sugar firms. Deputy Foreign Minister Carlos Fernandez de Cossio proposed this week the Commission's original lump-sum mechanism: the governments negotiate a total amount, which Cuba pays to the US Treasury for proportional distribution to claimants. Cuba has signed similar pacts with Canada (1980), the United Kingdom (1978), France (1967), Spain (1967), and Switzerland (1967). Brookings economist Richard Feinberg calculated in 2015 that repaying the principal without interest over ten years would require $190 million annually—3.4% of Cuba's merchandise exports at the time. For individuals, a $1 million cap per claim would cut costs to $171 million, or under $18 million yearly, resolving 85% of cases. Corporations could join the global deal or negotiate separately, though Feinberg notes Cuba's credibility issues with creditors since the nationalizations. Potential funding sources include export revenues, a $50 tourist tax per visitor generating $50-100 million annually, and rejoining bodies like the IMF and World Bank.
