Cuban banks begin offering home, business loans

People wait outside a bank agency in Havana, Cuba, Tuesday, Dec. 20, 2011. Cuban banks have begun offering bank credits to anyone hoping to redo their home or invest in a private business, the latest in a series of free market reforms pushed by President Raul Castro.
AP Photo/Franklin Reyes
AP Photo/Franklin Reyes

HAVANA (AP) — Cuban banks have begun offering bank credits to people hoping to redo their home or invest in a private business, continuing a series of free market reforms pushed by President Raul Castro.

The Communist Party newspaper Granma reports the smallest loans on offer will be for 1,000 pesos ($41). It says larger loans will depend on each borrower’s ability to pay. The newspaper does not say what interest rates or other conditions will apply, except that the rates will vary depending on the length of the loan.

The credits were announced in November and went into effect Tuesday.

A flier issued to customers at state-owned Banco Metropolitano says potential borrowers will be told within 20 days whether their loans are approved.

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