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Cuba eases restrictions on loans to small businesses | Cuba eases restrictions on loans to small businesses |
(about 2 hours later) | |
The Cuban government has eased restrictions on loans to private borrowers in the latest measure aimed at boosting the island's troubled economy. | The Cuban government has eased restrictions on loans to private borrowers in the latest measure aimed at boosting the island's troubled economy. |
Individuals and small businesses can now borrow smaller amounts and have more time to pay back the government. | Individuals and small businesses can now borrow smaller amounts and have more time to pay back the government. |
President Raul Castro had launched the programme two years ago as part of measures to reform Cuban socialism. | President Raul Castro had launched the programme two years ago as part of measures to reform Cuban socialism. |
The minimum lending has been reduced from 3,000 to 1,000 pesos (£41; $67). | The minimum lending has been reduced from 3,000 to 1,000 pesos (£41; $67). |
The measure was published in the official gazette. | The measure was published in the official gazette. |
People will also be allowed to use their houses or jewellery to guarantee their loans. | People will also be allowed to use their houses or jewellery to guarantee their loans. |
The maximum period of the loans has been extended from five to 10 years. | The maximum period of the loans has been extended from five to 10 years. |
'Civilised relations' | 'Civilised relations' |
Earlier this month, the Cuban government lifted restrictions on private individuals buying new and second-hand cars. | Earlier this month, the Cuban government lifted restrictions on private individuals buying new and second-hand cars. |
Any Cuban citizen or foreigner with enough money will now be allowed to import the vehicles through an official agency. | Any Cuban citizen or foreigner with enough money will now be allowed to import the vehicles through an official agency. |
Previously, official permits were required and they were often issued to government officials, doctors and other people with access to the authorities, such as sports stars. | Previously, official permits were required and they were often issued to government officials, doctors and other people with access to the authorities, such as sports stars. |
The main aim of the reforms introduced in the last few years is to keep the economy afloat, says the BBC's Sarah Rainsford in Cuba. | The main aim of the reforms introduced in the last few years is to keep the economy afloat, says the BBC's Sarah Rainsford in Cuba. |
Our correspondent says the latest announcement appears aimed at promoting the culture of credit, which remains a novel concept on the island. | |
Although Cubans have been able to request bank credits since 2011, barely 500 are reported to have borrowed money. | |
The government wants to boost that figure as part of its efforts to encourage 1.5 million people to switch from the state payroll to the new private sector. | |
Some 440,000 people, or about 9% of the Cuban workforce, are now self-employed. | |
But analysts point out that the new businesses face a big problem - they all chase a very limited number of Cubans with cash to spend. | |
In his speech before the National Assembly in Havana on 22 December, Mr Castro called on the United States to establish "civilised relations" with his country. | In his speech before the National Assembly in Havana on 22 December, Mr Castro called on the United States to establish "civilised relations" with his country. |
But he warned that Cuba and the US - old Cold War rivals - "should respect their differences". | But he warned that Cuba and the US - old Cold War rivals - "should respect their differences". |
The US broke relations in 1961, two years after the revolution led by Raul's brother, Fidel Castro. It imposed an economic embargo on the island shortly after that. | The US broke relations in 1961, two years after the revolution led by Raul's brother, Fidel Castro. It imposed an economic embargo on the island shortly after that. |