The Spanish government has begun using a debt conversion programme with Cuba to fund humanitarian support, including the delivery of food to the island’s population amid a severe economic and social crisis. The mechanism, originally agreed in 2016 and reactivated in June 2025, is designed to mobilise up to 375 million euros for development projects in areas such as energy, water, and food security. A first allocation of around half a million euros has already been directed toward food purchases sourced through local agricultural cooperatives.
The initiative aligns with commitments made by Spain’s Prime Minister Pedro Sánchez, Brazil’s President Luiz Inácio Lula da Silva, and Mexico’s President Claudia Sheinbaum during a progressive summit held in Barcelona on 19 April. In a joint statement, the leaders expressed concern over Cuba’s humanitarian situation and called for measures to alleviate conditions on the island while respecting international law. The debt conversion programme forms part of Spain’s broader effort to channel financial relief into structured development cooperation rather than direct budgetary support.
According to Spanish officials, the programme is not normally intended to cover current expenditure, but an exception was approved earlier this year for a pilot project involving food assistance. This decision followed growing urgency linked to supply shortages on the island, with funds being used to extend an existing school feeding initiative in eastern Cuba. The food is being procured through local cooperatives, aiming to support both nutrition needs and domestic agricultural production.
However, the move has sparked frustration among around 200 Spanish companies operating in Cuba, which collectively claim outstanding debts of approximately 316 million euros from Cuban state entities. Many of these firms, with significant representation from Catalonia and the Basque Country, argue that while public funds are being redirected into aid programmes, unresolved commercial arrears remain unaddressed. Business representatives have also expressed disappointment following the rejection of a Senate motion on 5 May that sought stronger government action to recover unpaid debts owed by Cuban state institutions.
During the parliamentary debate, the Spanish government defended its position, stating that while it actively supports companies through diplomatic and administrative channels, public funds cannot be used to compensate for private commercial losses. The government emphasized that existing legal frameworks do not allow for direct state reimbursement of such debts, even as it continues to raise the issue with Cuban authorities.
Cuba’s broader economic crisis has intensified in recent months, driven by chronic shortages of fuel, electricity, and essential goods, alongside reduced tourism activity. The situation worsened further after disruptions in oil supply routes linked to Venezuela, which had been a key supplier to the island. The resulting energy constraints have impacted aviation links, with several international airlines adjusting or suspending routes. Spanish carrier Iberia, part of IAG, temporarily suspended its direct flights to Havana during peak travel periods due to operational difficulties.
The tourism sector, a vital source of foreign revenue for Cuba, has also suffered significantly. Major hotel groups such as Meliá Hotels International, which operates dozens of properties on the island, have reported sharp declines in occupancy and have been forced to scale back operations, closing a portion of their hotel capacity due to fuel shortages and declining demand. As economic pressure mounts, Spain’s debt conversion initiative highlights both the geopolitical complexity and the competing pressures between humanitarian assistance and unresolved commercial tensions.
