Cuba eases policy for granting credit to private sector

Cuban Central Bank (BCC) has issued a resolution to ease the policy for granting loans to the country's private sector, according to the Official Gazette published here on Saturday. The resolution updated a previous one issued in 2011, extending more financial support to "self-employed" workers, as private entrepreneurs are called by Cuba's official media. Under the new resolution, applicants may request a loan for a minimum of 1,000 pesos (about 40 U.S. dollars), against the previous 3,000. This will help those entrepreneurs who need a smaller amount of money. The term of repayment now extends from five years to 10 years, depending on specific business activities. Presidents of local bank branches are now authorized to give smaller amount loans and extend longer terms of repayment. However, Jose Alari, president of the Popular Bank of Savings, said that new private workers would still fear to face a bank institution, because they would be subjected to inspections on their incomes by bank officials. Several new entrepreneurs told Xinhua that they had different sources of financing for their own businesses, but none had visited bank offices. Most of them started their businesses with their personal savings. Others have turned to their relatives or friends, who in many cases reside overseas.