A UK court has ordered Banco Nacional de Cuba (BNC) to pay more than CI $18.1 million to Cayman Islands fund CRF I Limited, after the court fixed damages and legal costs in the debt case. The decision, made by the Commercial Court in London, followed earlier rulings that established CRF as the lawful creditor.

Mr Justice Andrew Baker assessed recoverable damages at CI $18,034,078.32 and legal costs at CI $89,804.96, taking the total to CI $18,123,883.28. BNC was ordered to pay within 14 days of being served with the order, and it was given seven days to apply to set aside, vary or discharge it.

The court's order

The Commercial Court fixed the sum after Banco Nacional de Cuba failed to respond to CRF I Limited's application for assessment of damages. The court decided the application on paper after earlier default judgment proceedings.

In his order, Justice Baker noted that the defendant had been given CRF's application but had not responded. The ruling therefore fixed the amount BNC was required to pay under the English judgment.

The case arose from two historic commercial loans agreed in 1982 and 1984 between Banco Nacional de Cuba and European banks, forming the basis of the debt recovery dispute. Cuba defaulted on the debt in the 1980s, after which the claims were acquired by Cayman Islands-based CRF I Limited. The fund later filed proceedings in London's High Court in 2020.

CRF says ruling confirmed its position

In a statement welcoming the ruling, CRF Chairman David Charters said:

"The English Commercial Court has entered judgment against Banco Nacional de Cuba and assessed damages and costs totalling £18,123,883.28. A negotiated resolution remains possible, but it now requires serious and constructive engagement from Cuba and BNC," he said.

CRF said it had proposed confidential talks in June on restructuring options, including growth-linked instruments and debt-for-equity arrangements. The fund said it had received no response, but the court order itself did not address any settlement talks.

Long dispute over who was liable

The dispute has moved through several levels of the English courts. The latest order followed a series of appellate decisions that established CRF as the lawful creditor of BNC. The English courts also held that the Republic of Cuba itself was not subject to the proceedings because it had not been a party to the relevant jurisdiction agreements.

Cuba has disputed CRF's position throughout the case, rejecting the debt transfer and arguing that later banking reforms removed Banco Nacional de Cuba's authority to act for the Republic. CRF, in turn, said the English courts had already resolved the creditor question in its favour.

After the High Court's 2023 judgment, Cuban Foreign Minister Bruno Rodríguez said the ruling confirmed that the Republic itself was not liable.

"Cuba was never a party to the loan agreements or to the transfer agreements. The court confirmed that CRF is not a creditor of the Republic of Cuba," Rodríguez said at the time.

The Court of Appeal upheld the High Court's ruling in 2024. The UK Supreme Court later declined to hear a further appeal in 2025, which allowed the proceedings against BNC to continue.

What happens next

BNC now faces a deadline to pay the sum ordered by the court within 14 days of being served with the order. It also has seven days in which to apply to set aside, vary or discharge the decision.

If payment is not made, further applications or enforcement proceedings could follow. The order does not end the wider dispute, but it does mark another significant step in the London litigation.

For Cayman, the practical next step is that creditors must prove their debts or claims within 21 days of the notice, or they risk being excluded from any distribution made before those claims are proved and from objecting to the distribution.

According to the UK Courts and Tribunals Judiciary, the Commercial Court specialises in the determination of commercial disputes, the majority of which have an international element. Approximately 75% of the Commercial Court’s work is international (having at least one overseas party) and that has been the case for at least the last 20 years. Parties (whether domestic or foreign; corporate or individuals) choose to commence their disputes in the Commercial Court because of its expertise and proven track record in the efficient resolution of international business disputes, however complex.