New credit system comes into effect in Cuba

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HAVANA, Cuba (ACN) — A recently approved credit system allowing the granting of loans to small business owners, private farmers and those looking to repair or rebuild their homes came into effect in Cuba on Tuesday.

Specifics on the new credit system are established by the 289 Law-Decree, three complementary resolutions from the Central Bank of Cuba and one instruction by the Economy and Planning Minister.

According to the legal instruments, the starting loan for the people interested in purchasing building materials and paying for labour associated with home construction, is of 1,000 Cuban pesos, while for the self-employed the lowest amount is 3,000. Small farmers holding a land lease or ownership title can request a minimum credit of 500 pesos.

To process applications, 500 offices — 216 of them of the Cuban People’s Saving Bank — have been set up all over the country, not only for the granting of credit lines, but also to provide financial advice.

Loans will be granted on a strict analysis of risks to guarantee repayment based on the people’s ability to pay back, the feasibility of the project to be undertaken by the borrower and the legal personal income.

As the economic situation of the country allows, individuals will be given access to loans for the purchase of other items.

The move is in line with the government’s economic agenda of granting loans to stimulate national production, reduce imports and boost the economy.

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