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Cubans shocked at prices as foreign cars go on sale | |
(about 17 hours later) | |
Cubans have reacted with shock after foreign-made cars went on sale for the first time since the 1959 revolution at what some termed "crazy" prices. | |
The state has a monopoly on new cars and is marking up prices 400% or more. | |
A Peugeot 508 costing £32,000 ($53,000) in the UK is listed at $262,000. State salaries average about $20 a month. | |
Freeing up car sales is the latest in a series of reforms in Communist-run Cuba. The requirement for a permit to buy new vehicles has been abolished. | |
However, only a minority will benefit. | |
The BBC's Sarah Rainsford, in Havana, says the stream of people at one used-car store in Havana's upmarket Miramar district were in for a shock. | |
She says the most commonly uttered phrases were "this is madness" and "what a lack of respect", referring to the government. | |
One of those outside the dealership, Suzanne, told the BBC: "The prices are crazy. No Cuban who works for the state can buy at that price. They have zero chance of getting a car." | |
Another, Antonio, said: "We're speechless, it's a big surprise. I don't know what the government's strategy is. Maybe this is just a test phase. But the prices are excessive." | |
The government argues profits will be placed in a special fund to develop public transport. | |
Our correspondent says that the money is desperately needed, as there is a dire shortage of transport and what there is is often in a decrepit state. | |
But one Cuban resident, Daniel Rojas, asked: "At these prices, how many people can buy the cars? So where's the money to invest in public transport if no-one can buy them?" | |
Until new regulations in 2011, people could only sell cars built before the 1959 revolution. | Until new regulations in 2011, people could only sell cars built before the 1959 revolution. |
For new cars, people needed a much-sought government permit - a privilege mainly bestowed on senior officials, top athletes and artists. | For new cars, people needed a much-sought government permit - a privilege mainly bestowed on senior officials, top athletes and artists. |
The permits were often traded on the black market for large sums of cash. | |
The latest move is part of a series of reforms driven by President Raul Castro aimed at updating the Cuban economic model. | |
Raul Castro has championed limited free-market reforms since taking the reins of power from his brother Fidel in 2008. | Raul Castro has championed limited free-market reforms since taking the reins of power from his brother Fidel in 2008. |