HAVANA, Cuba, Dec 11 (ACN) As part of the monetary order process, the Central Bank of Cuba (BCC) published seven resolutions referring, among other issues, to bank operations and accounts, mechanisms to lessen the effect caused by the devaluation of the Cuban peso and to fulfill the external obligations contracted by the business sector before the monetary and exchange rate unification.
In Extraordinary Official Gazette number 73, the measures to enter into force on January 1 define aspects such as the 180-day term for the exchange of convertible pesos (CUC) into Cuban pesos (CUP) in banks and exchange offices, and according to the 24 CUP per CUC (24 x 1) exchange rate.
Resolution 177 establishes that the transactions currently designated and executed in the national territory in convertible pesos or in foreign currency will be designated and executed in Cuban pesos, except in the cases expressly authorized.
In addition, savings accounts in CUC, fixed-term deposits and certificates of deposit of nationals are kept in that currency for a 180 day period, and during that term their holders may decide whether to convert their funds, in whole or in part, to CUP - at the 24 x 1 exchange rate - into US dollars or euros.
In the case of Resolution 178, it stipulates, among other issues, the establishment of a facility in CUP, of a transitory nature, destined to finance different modalities recognized as working capital, investments and salary, with a short term expiration date until its conversion into the corresponding financing, in order to reduce the effect caused by the devaluation of the Cuban peso, which will be understood as a bridge credit.
Regarding the establishment of a financing mechanism in Cuban pesos - hereafter referred to as a compensatory mechanism - Resolution 179 explains that it will be made to cover the difference between the financial resources required by the entities of the business sector to honor the external obligations contracted before the monetary and exchange rate unification, and the resources available to them, applying the current exchange rate.
In this way, in line with the Economy Plan, the payment of these commitments with a deadline of up to 360 days after the unification will be ensured.
The bank accounts opened in the national territory in foreign currency by Cuban and foreign citizens may remain in their current denomination, or be converted to Cuban pesos at the decision of the holder, according to the prevailing exchange rate, according to Resolution 180.
These accounts accept in foreign currency, as well as cash deposits, bank transfers from abroad and from other accounts opened in foreign currency in Cuban banks, it notes; also, cash can be withdrawn in Cuban pesos or foreign currency, at the corresponding exchange rate.
Since the monetary and exchange rate unification, joint ventures, international economic association contracts, and totally foreign capital companies established in Cuba, under Law 118 on Foreign Investment of March 29, 2014, will operate bank accounts in Cuban pesos and foreign currency, the latter concept referring to the foreign exchange accepted by the BCC, according to Resolution 181.
Resolution 182 establishes an update of the banking rules for deposits of goods in custody and administration; and that the Banco de Credito y Comercio, Metropolitano S.A., and Banco Popular de Ahorro will adjust the banking procedures in force within seven working days as of the entry into force of this Resolution.
For collection and payment operations arising from contractual relations, the payment and credit titles agreed upon by the parties are used, according to the characteristics of the transaction and the security offered: cash, bank transfer, check, bills of exchange and promissory note, collection order, debit or credit card, local letter of credit, states Resolution 183.