Loans to NACs and MSMEs are only provided for working capital and investments Photo: Jose M. Correa
Among the norms published last Monday as part of the update of the regulation of non-state economic agents in the country are Resolutions 89 and 90 of the Central Bank of Cuba (BCC).
With the entry into force of these provisions, Resolutions 212 and 213 issued by the BCC in August 2021 will be repealed within 30 days from the date of publication of these standards.
Resolution 89 maintains the previous one that prospective founding members of a non-agricultural cooperative (CNA) or a micro, small and medium enterprise (MSME) make the financial contributions in Cuban pesos for their creation by submitting a corresponding request to the financial institutions authorized by the BCC and presenting the procedure on the platform created for this purpose.
The change is that the account no longer has to be opened in person, but that once the relevant financial institutions receive the documentation, they will automatically open the account into which the members will pay their contributions to the share capital through the channels currently established.
He adds that in addition to the current account, CNAs and MSMEs can also maintain expense accounts, fixed deposit accounts, income accounts and – as a new feature – an account linked to a swipe card.
Decision 90, which regulates the procedure for granting loans and general banking services to CBAs and MSMEs, provides, among other things, that loans shall be granted only for working capital and investments.
It is maintained that, in order to grant these loans, banking institutions will carry out a risk analysis which will include:
Economic activity of the applicant.
– Amount of financing requested.
– Purpose of the loan.
– Meaningfulness of the project or investment.
– Feasibility of the business or investment.
– Possible sources of repayment and the applicant’s ability to pay.
– Proposed safeguards to ensure compliance with the commitments.
– Existence and payment status of other debts and obligations entered into.
– Other aspects necessary to ensure the repayment of the borrowed amount.
This regulation provides that banks shall, where appropriate, carry out visits to verify the loans granted to NACs and MSMEs during the period of validity of the loan. The main aspects to be verified include the use of these loans in accordance with the purposes for which they were approved and compliance with the payment obligations agreed with the bank.
In case of non-compliance with the agreed payment dates, the financial institution will charge the debtor a late payment interest surcharge, up to the maximum limit established by the BCC, on the amount of each outstanding installment until the debt is duly paid. In addition, in case of repeated defaults, the BCC may take the legal measures provided for by the current laws of the country.
