The province of Guantánamo has shifted the pension payment method for over 27,000 retirees and pensioners, utilizing economic entities to facilitate these payments. This figure represents 54.4% of those who possess magnetic cards within the region.
Oscar Mendoza Pérez, the provincial director of Labor and Social Security, highlighted on Saturday that Guantánamo has established 1,462 contracts with private businesses, cooperatives, and state entities. This effort is in partnership with the Bank of Credit and Commerce (Bandec) and the Popular Savings Bank (BPA).
"Through agreements with the bank, we have increased the number of contracts with economic actors to 1,462, which benefits 27,119 retirees and pensioners. This represents 54.4% of those currently using magnetic cards, an area where we must continue to make progress," Mendoza stated during the "In Frequency with the People" program broadcast by Radio Guantánamo.
Rapid Expansion of Pension Payment System
The growth of this initiative has been swift. As of September, there were 1,056 contracts, serving 18,344 beneficiaries, which accounted for 37% of the province's total. In comparison, just a month earlier in August, only 113 private businesses were handling payments for a little over 3,000 retirees.
The municipality of Imías leads the implementation, with about 90% of its retirees receiving payments through this system. However, areas like El Salvador, Maisí, Baracoa, and the provincial capital are still lagging, with authorities acknowledging these as issues needing resolution.
Mechanism and Challenges of the System
The system involves economic actors receiving a payroll list with the names of beneficiaries and their respective amounts. They distribute the cash to pensioners and have 72 hours to submit the paperwork to the bank for reimbursement.
Established under the Resolution 74/2026 of the Central Bank of Cuba, effective since July 20, this mechanism is part of the eighth axis of a 176-point economic and social transformation package approved in June by the National Assembly.
Authorities present this initiative as an alternative to prevent elderly citizens from enduring long waits at banks, sometimes even overnight, to collect their pensions.
Financial Struggles and Economic Implications
Nevertheless, the growth of this model also highlights liquidity challenges faced by Bandec in Guantánamo. In September, the bank managed to capture slightly over 34% of the nearly 15 million pesos required daily.
In July, the official newspaper Venceremos acknowledged that the banking situation in the province "has evolved from a banking issue to a social problem."
Adding to the system's limitations is the low amount of pensions. The average pension payment through this mechanism in Guantánamo stands at 3,256 pesos monthly, below the national minimum of 4,000 pesos and far from the estimated cost of the basic basket, which several economists estimate to be over 50,000 pesos per month.
Cuban economist Elías Amor has raised concerns about transferring pension payments to private businesses, warning of liquidity risks, potential delays in reimbursements, and the bureaucratic burdens placed on participating establishments.
Official figures indicate that the eastern province has around 68,000 retirees or pensioners, with approximately 18,000 receiving cash through the postal service, while the rest use cards.
Provincial authorities aim to have 70% of Guantánamo's retirees with magnetic cards receive payments through economic entities.
Understanding Guantánamo's Pension Payment Shift
What percentage of Guantánamo retirees receive pensions through economic entities?
54.4% of retirees in Guantánamo receive their pensions through economic entities.
How many contracts have been established with economic actors for pension payments?
There are currently 1,462 contracts in place with economic actors for handling pension payments.
What is the average pension payment in Guantánamo?
The average pension payment in Guantánamo is 3,256 pesos per month.