More Autonomy for Cuba’s State Companies in 2014

HAVANA TIMES — Cuban economy planners are considering greater autonomy for state run companies in 2014 so they can accumulate capital on their own, economic chief Marino Murillo told the Cuban parliament on Sunday.

“Companies would no longer need to contribute sinking funds to the state as has occurred to date, and they will be able to decide on how to use 50 percent of profits after taxes,” said the official.

In addition, companies that show losses of more than two years, will suffer a process of “extinction, merger, downsizing or be transformed into another form of management.”

Further measures will eliminate administrative barriers to payment of wages, as long as the company can fund them with its profits.