Cubadebate
Havana, Republic of Cuba
24 November 2021

Microcredit financial institution created for new Cuban economic actors

The Cuban banking system created a new financial institution to grant microcredits to newly launched MSMEs, as well as self-employed workers and cooperatives. Financiera de Microcréditos SA, legally recognized, arises in response to the need for these actors to be inserted into the country's economic scene, highlighted in a press conference Ayamis Losada García, director of the new company that was born from the transformation of the license of FIMELSA, a non-bank entity dedicated until now to financial intermediation within the national territory.

The institution, which will begin operating on December 15 with a national scope, will be able to grant credits in Cuban pesos (CUP) and in MLC, "in the form of microcredits", that is, small amounts of capital that allow to boost the production of goods and services. Losada García said that, in this first moment, self-employed workers, cooperatives and MSMEs that have demonstrated export capacity will receive financing, and only to make wholesale purchases that are in the country, as well as for payments to entities authorized to sell in the national territory in these coins.

In MLC, she said, the productions and services that have been contracted will be financed in exports, in sales to chain stores in MLC and to the Mariel Special Development Zone. "We need the money to return in the same amount and currency in which it was delivered," she emphasized and said that the financing granted will be placed entirely in the account of the provider of the services or products. According to Losada García, the microcredits will not have a maximum amount, and the minimum could be 100,000 CUP or 500 USD. For the delivery of the money, there is no distinction, whether it is for working capital or for investment, but the characteristics of the project will be evaluated, the directive specified and clarified that the loan must be returned as soon as possible: for MLC the maximum term, Initially, it will be 120 days, and in the case of the CUP it will "be negotiated."

Bárbara Mirabal, vice president of Banco Popular de Ahorro, explained that the amount of the loans and the terms for their repayment depend on the level of financing that has been achieved in foreign currency, taking into account that financial companies obtain the money from procedures business with banks. The objective, at first, is to accompany the economic actors who meet the established conditions, so that they become more dynamic, the money grows and other entrepreneurs who need to enter the market can join. The maximum period that must elapse between the request and the granting of the financing is 10 business days, counted after it is verified that all the information is correct.

The offices of the Financiera de Microcéditos are located at Inmobiliaria Caribe, at ave 47, No. 3413, between 34 and 36, Kohly district, Playa municipality, Havana. Those interested can contact by phone: 72027330 and 72026254 (blackboards), ext 111 and 113, and by email: cliente@microcredito.co.cu.

Frequently asked questions and answers:

1. Being a self-employed worker, can I access this type of financing? Yes, these financings are designed for economic actors, understand self-employed workers, non-agricultural cooperatives, state, private and mixed MSMEs.
2. Can I request microcredits in both types of currency? Yes, only in MLC at least one of the following three conditions must be met: Make sales to chain stores in MLC. Market in the Mariel Special Development Zone. Make exports.
3. What is the maximum amount I can ask for? The maximum amount is defined depending on the nature of the projects that are intended to be financed, but, in any case, it must be known that this type of financing (microcredits) is characterized by being rather small amounts with quick returns.
4. Can I request credit to buy in the network of stores in MLC? No.
5. If my business is new, can I apply for MLC credit to start the business? It will always be dependent on the project that it presents and the potential that can be seen in the business that is being started.
6. Is the credit payment in MLC or CUP? The money is returned in the same currency in which it is requested.
7. In what time can the credit be paid? The time depends on the type of currency, but in any case you should bear in mind that microcredits are characterized by being rather small amounts with quick returns.
8. Would the payment to the bank be monthly? The terms for the payment of principal and interest depend on the type of currency and what the parties agree to.
9. What interest rate does the bank charge for these credits? It depends on the currency in which the financing is requested, in the case of the MLC an interest of up to 6.5% is charged per year, while for the CUP the lowest rates established by the BCC are taken into account, according to the agreed terms .
10. In addition to the interest rate, is there a commission charged? Yes, commissions of up to 0.75% are charged in the case of MLC financing and up to 1% in the case of CUP.
11. In what currency are commissions paid? All obligations with the finance company are paid in the same currency in which the financing was received.
12. Do these credits have to be guaranteed? Yes, the guarantees can be the income session, the pledge of the accounts and the debit notes.
13. What currency would these guarantees be in? All obligations with the finance company are paid in the same currency in which the financing was received.
14. When credit is granted, is it credited to the customer's MLC account? No, one of the conditions for the granting of microcredits in MLC is that the financing granted be placed entirely in the account of the provider of the services or products.