Persecution of Cuban Assets Abroad Worsens Blockade

bloqueoHavana, Oct 7 (Prensa Latina) Cuba informed to the UN that during the last year the persecution of its Cuban assets abroad as one of the modalities of the blockade applied by the United States on the island was worsened.

That action destined to prevent all kind of banking transactions and others in which Cuban interests are present also links with the ban to this country of the use of U.S. dollar in the mentioned activities to complicate them as much as possible.

Between April 2014 and March 2015, several correspondent entities of the Cuban banking system affected operations of the island’s institutions, seeing these forced to modify the usual channels to carry out payments and create delays and additional costs.

Fears to the retaliation of the U.S. government were founded, as the huge fine applied to French bank BNP Paribas showed in June 2014 by $8,900 million USD with the objective of encouraging fear among the other banking units and avoiding any transaction with Cuba.

We can see with the examples below some of the main difficulties banking institutions are confronting in Cuba to handle its international financial operations:

Currency risk by differences in exchange rates to continue the impossibility of using US dollar as a currency of payment and collection.

Closing the accounts in foreign banks, as happened in four European institutions, for example.

Denial of banking services to eight entities, five from Europe and three from Latin America, with abstention of confirming or advising on credit letter operations.

As we can see, the blockade makes that the Cuban entities should access to external financing in extremely onerous conditions as a result of country risk, main element in determining the feasibility and costs of operations.

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