14ymedio, Madrid, 30 May 2024 — The decision of the United States to authorize Cuban entrepreneurs to open bank accounts in the United States through the internet responds, according to Miguel Díaz-Canel, “to a subversive design, outlined in known strategies, that contemplates the manipulation and employment of this sector as a potential agent of change in the country.” The Cuban leader took a day of reflection to react with stronger words than those of his Ministry of Foreign Affairs and did so through his account on X.
“They are limited, restrictive and do not touch the fundamental issue of the blockade against our country, nor the other sanctions of its maximum pressure policy,” he argued, in line with the statement of the Foreign Ministry, published on Wednesday. “They do not eliminate or change the coercive measures that most affect the Cuban economy and public services, with which they today severely damage the well-being of our entire population,” he added.
Although Díaz-Canel did not mention it, he was referring to what almost 24 hours earlier the Ministry of Foreign Affairs described as “the absurd inclusion of Cuba in the list of states that allegedly sponsor terrorism.” Fifteen days ago, Washington removed the Island from the other list, that of countries that “do not fully cooperate with (U.S.) anti-terrorist efforts,” but the regime wants to get off the first list, which has greater implications, including restrictions on some economic and financial aid and access to international credits, in addition to the cancellation of arms exports.
“They do not eliminate or change the coercive measures that most affect the Cuban economy and public services, with which they today severely damage the well-being of our entire population”
“As long as the intensified blockade remains in force, criminally affecting the entire Cuban people, the United States will not be able to get rid of the global condemnation of this genocide-without-bombs that seeks to wipe out Cuba’s admirable resistance,” Díaz-Canel insisted in another message.
Republicans reject the Biden Administration’s measure, estimating that the Cuban regime will collaterally benefit from improvements that may come from the private sector. Hence, despite the rhetoric, the U.S. has said it will not place obstacles in the way of the rule issued by the Department of the Treasury and in force since May 28. However, the argument focuses on the defense that all “economic actors” are part of a single country, as does the title of the Foreign Affairs statement and the label used by Díaz-Canel this Wednesday in his message: Cuba is one.
“The concern about the development of the non-state sector of our economy is not genuine,” emphasizes Díaz-Canel, and “their plan to direct them [the measures] only to a segment of our people shows their historic intention to fracture unity among Cubans.” Paradoxically, what’s historic is the division established by the Cuban Revolution between the state sector, which was unique for half a century, and the private sector, which they are still reluctant to call by name.
Things have changed, slightly. Restrictions on private individuals remain the norm, and the message is that “the socialist state enterprise is the main basis of the national economy,” even if the Government has benefited from private initiative. The private sector has also been encouraged by the Kremlin’s advisors. Boris Titov has visited Cuba on several occasions to propose flexibility and offer personal supervision. Hundreds of genuine businessmen have been installed but also many others whose affinity with the regime has facilitated their prosperity.
What’s historic is the division established by the Cuban Revolution between the state sector, which was unique for half a century, and the private sector, which they are still reluctant to call by its name
Díaz-Canel insisted that the “increasing integration” of all economic actors will continue to be “promoted as a cornerstone to develop ourselves and move towards the well-being of all our people.”
Among those affected or benefited, uncertainty still reigns, as reflected by some entrepreneurs interviewed by the EFE agency. One of them was Juan Carlos Blaín, a “food logistics operator” who regretted that a bank in the United States never wanted to open an account for him despite his having a business visa. “All the banks I went to said no.” He is now optimistic and recognizes that “any step forward obviously brings benefits,” but he plans to wait to see how the norm unfolds in real life.
“It’s the first step of many that must be taken,” added Yulieta Hernández, CEO of a construction company who also believes cautiously that it’s an excellent opportunity. In her opinion, a possible victory for Donald Trump in the November elections could reverse the decision, and there might also be “very few” banks that will work with Cuban businessmen because the “perception of risk is very high” — among other things, due to Cuba’s presence on the list of state sponsors of terrorism.
Oniel Díaz, of the consulting firm Auge, also described the measure as positive but believes that the “exchange rate problems” complicate insertion into the international banking sector for Cubans. “A measure of this type contributes to interrelating the economic activity of Cuban private enterprises more with many Cuban-Americans and creates a stronger connection between us, although we will have to see the fine print,” in addition to the decision of the banks, ultimately responsible for lifting the ban.
“The banks will be very cautious, but in the end we don’t need ten banks willing to do this; we need one.”
Interviewed by the Nuevo Herald, lawyer Akerman Matthew Aho, who works with entrepreneurs on both sides, said that he does not expect many banks to be willing to accept the possible risks although there is enormous potential for electronic operations. “The banks will be very cautious, but in the end we don’t need ten banks willing to do this; we need one. What the Administration did is a policy statement; it says that this sector exists, it is real. But we have to see how the banks react. Are they going to feel that the regulations are clear and broad enough?”
Also John Kavulich, president of the Economic and Commercial Council of the United States, wonders who will risk taking the first leap into the void, “counting on the long term and being the first to open one of these accounts.” Both agree that there is also the possibility that, as in any rule, abuses will occur, a question raised on Wednesday by the Center for a Free Cuba, based in Washington: “What measures will the Treasury Department take to ensure that they can exclude members of the dictatorship, the Army, the Ministry of the Interior and the Communist Party from exploiting these opportunities?” it asked.
Those consulted pointed out that a verification system will probably be necessary for the Government in this regard. Many have doubts, with a presidential election just around the corner.
Translated by Regina Anavy
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