• Submitted by: Luis Manuel Mazorra
• Business and Economy
• 02 / 02 / 2012

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After entering into force the new measure that allows individuals in Cuba to obtain bank loans, the Central Bank of the island make changes that lead to the application of new rates.

Interest rates on deposits and credits are a mechanism that contributes to financial stability and profitability of banks and other sectors of the economy that benefit from financial activities.

Differentiated between active and passive object of his application, they are related by their impact on bank profitability and its impact on the macroeconomic framework.

The level of deposit rates for individuals currently applied by the BCC supports up to 72 months time, ranging from 0.50 to seven pesos a month.

While lending rates for individuals and companies affected by the type of loans: working capital, investment or construction materials and / or workmanship.

The repayment period ranges from three to more than 60 months, and the rate to apply can reach a maximum of 8.5 plus or minus 1 percent.

As explained by the director of BCC's Monetary Policy, Eduardo Hernandez, although interest rates are fixed by the entity's commercial banks have some leeway for their determination.

This takes into account the purpose of the credit requested, the client's ability to pay and risk analysis.

Early in the process of lending Cuban banking authorities announced that this analysis will be thorough and personal, and address the particularities of each subject and his project.

This allows that the benefits of fulfilling responsibilities agreed in the loan agreement for the debtor's case, may be the decrease in the rate of interest applicable to requested credit later.

Roque Hernández stressed that the ranges of the two rates may change depending on the country's economic circumstances.

However, he said, those changes will not affect contracts already concluded, but on the new (both savings and credit), as well as renewals of terms of deposits.