Cuban bank to offer loans to self-employed

havana-live-banco-popularHAVANA Sep 3 (acn) The emerging Cuban self-employed sector will have access to loans up to 10 thousand Cuban pesos to be granted by the Banco Popular de Ahorro (BPA), in a effort to boost the use of external sources of financing by them.

Greicher La Nuez, business manager of the BPA, said this measure will get in force in the next future and aims at getting a closer working relation with the self-employed sector.

According to the official, since 2013 there are several forms for the self-employed to back up their requests for a loan, like co-signers, or valuables and mortgages, but the lack of them have had a negative impact on the amount of applications.

Now, applicants will use as a guarantee of payment a banking account that will be created for that purpose, where they will deposit a fourth of the monthly amortization (200 pesos), La Nuez explained

This will help boosting a culture of saving, and once the loan is paid back in full, the monies deposited on the account can be used as collateral for a larger loan, if so desired.

In an effort to make funds available at a faster pace, the bank set a three-day deadline for loans to be granted in every branch throughout the country.