Cuba: New Credit System Comes Into Effect Today

Campaign News | Tuesday, 20 December 2011

From Radio Cadena Agramonte

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 has come into effect in Cuba, this Tuesday, December 20.

Specifics on the 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 labor 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.

In view of this process, 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 the 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 lender and the legal personal income.

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

The move is in line with the government's economic agenda approved by the Sixth Congress of the Cuban Communist Party of granting loans to stimulate national production, reduce imports and boost the economy. (acn).

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