November 26, 2011
HAVANA: Cuba will allow banks to lend money to small businesses, private
farmers and those who want to repair or build homes - a revolutionary
step for the communist government.
The measure, which comes into effect on December 20, is part of a
cautious overhaul of Cuba's Soviet-style economy that began when Raul
Castro took over from his older brother Fidel as president in 2006.
Farmers ''can ask for loans for the purchase and repair of equipment …
and other actions that contribute to rising agricultural production'',
the decree published in the Official Gazette on Thursday said.
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The loans will be available only in Cuban pesos, and the amount and
conditions will be agreed between the bank and the borrower, the decree
said.
A convertible peso, known as CUC and pegged to the US dollar, is also
available, now valued at 24 pesos.
Cuba's economy has been controlled by the state since the 1959
revolution, and people have traditionally turned to family and friends
when they need a loan.
The few Cubans with bank accounts include musicians who go on foreign
tours and professionals, especially doctors, who work abroad.
While pay in Cuba is meagre, about $US20 a month, basic food items are
subsidised, and health services and education are free.
The new loan measures announced will help home builders and small
businesses such as ''paladares'', or private restaurants, that have
sprouted in Cuba, to service the island's growing tourist industry.
Cuba's single-party regime authorised the purchase and sale of cars
earlier this year.
Agence France-Presse
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