Cuba Allows Credits to Non-state Workers

The Central Bank of Cuba (BCC) has taken measures to grant loans to non-state workers, in the context of the update of the country’s economic and social model.

The institution issued a resolution that updates and softens what was stipulated to grant funds to self-employed workers.

Published in the Official Gazette on December 24, Resolution No. 88 of 2013, signed by the Minister-President of the BCC allows self-employed workers to request loans for a minimum of 1,000 pesos, instead of 3,000 pesos listed before.

The legislation extends up to 10 years the terms for self-employed workers (private workers) and other forms of non-state management to honor the loans that were granted to them to invest in their businesses.

Bank presidents were granted prerogative to exceptionally authorize loans for lower amounts and longer terms for payment.

The resolution also noted that, if there is a breach in the agreed payment date, a rate of default interest will be applied to the debtor on the amount of each pending term, until the debt payments are updated.

In case of loans to individuals for the purchase of construction materials or labor payment for constructive actions, among others, a 10-percent surcharge of the amount of each pending term will be applied, the document said.

The policy related to granting loans to individuals came into force in 2011, as part of Decree-Law No. 298 on loans to individuals and other banking services.