Central Bank of Cuba Expands Lending Policy

HAVANA TIMES — The Central Bank of Cuba granted 133,000 loans so far this year, given out primarily for the purchase of building materials and payments for labor, reported the Prensa Latina news agency.

“Although some people were dissatisfied, credit policy is going well and being implemented favorably, but we must continue to improve it,” said Ernesto Medina, the minister-president of the BCC, without specifying the difficulties.

The Cuban government has instructed banks to be “more proactive” in financing self-employed workers and other non-state forms of management, said the official in an interview with the Granma newspaper.

In addition, some standards were relaxed for what constitutes a guarantee, such as those concerning co-signers and savings accounts, said Medina.

2 thoughts on “Central Bank of Cuba Expands Lending Policy

  • This is a very positive development.

    I think what socialist Cuba needs–in order to augment the supply of pesos among the working people and make the markets function better–is a system of non-state banks owned by depositors and cooperative banking associates. Such a cooperative banking system would make consumer and capital credit extensions, creating new money as fully-collateralized “loans.”

    The difference between these cooperative bank loans, and those made by capitalist banks, would be that no time-based interest would be charged. Instead, customers would be charged a credit generation and pay-back monitoring fee, lucrative enough to cover the banks expenses and make a small, reasonable profit for depositors–and perhaps the state, if the state should hold silent, partial co-ownership.

    This would not mean that the state-owned central bank would not be needed. It surely would, to provide capital credit for state projects of all sorts; but it too should not charge time-based interest to the state.

    Money, credit and banking are at the heart of the socialist transformation of society, heading hopefully in the direction of a far-in-the-future classless, stateless, truly human society. The Cuban leadership party perhaps will be able to supplement the old state monopoly financial system with one that is more functional and dynamic.

  • As I recall the Cuban “government” are giving out these loans in pesos and making the Cuban population buy in CUC’s at the “government” stores at the “government” prices! And lets not forget the fee for conversion!! Correct me if I’m wrong please, include a link!

    MERCO PRESS: Cuba opens bank loans for small businesses, private farmers and house repair

    The loans will be available “always in Cuban pesos” and the amount and conditions will be agreed between the bank and the borrower, according to the decree.

    A convertible peso, known as CUC, pegged to the US dollar is also available on the island. Each convertible peso is currently valued at 24 Cuban pesos.

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