The Central Bank of Cuba (BCC by its acronym in Spanish) published in the Gaceta Oficial (Official Gazzette), in PDF format, the Regulations on bank accounts to be used by first degree non-agricultural cooperatives (CNA by its acronym in Spanish).
In less than a year from the start of the experimental process of creation of these cooperatives, there are already 200 in operation and more than 500 have been approved so far.
Whether for state-owned or self-employment non-agricultural cooperatives, it is useful to review Resolution No. 35 de 2014 by the Minister-President of the Central Bank of Cuba, published on May 21, 2014 in the Official Gazette of the Republic of Cuba.
According to the Juventud Rebelde newspaper, the Resolution states that candidates to become founding partners of a first degree non-agricultural cooperative (those being created these days) who wish to contribute with a certain amount of money in Cuban pesos for the constitution of a cooperative must apply for a deposit account at sight in Cuban pesos to place that amount.
This step can be performed in every branch of Banco Popular de Ahorro (BPA by its acronym in Spanish), Banco de Credito y Comercio, BancoMetropolitano S.A.; or in any other banking institution authorized by BCC.
The only objective of this deposit account at sight is to credit the funds from the contributions made in Cuban pesos from the candidates to become founding partners.
These deposits will not generate interests and banks with charge set commissions for the services rendered with the purpose of covering the operational costs with a reasonable margin, explained BCC.
It also added that, once the cooperative has been established, the balance of the deposit account will be transferred to the CNA’s current account; that is, an account to be used for performing operations linked to the CNA’s social objective, through which incomes are deposited and obligations are met.
However, if the cooperative is not established, the funds will be returned to the rightful person in accordance with the procedures implemented for the deposit.
The Resolution alsoestablishes that CNAs will work in only one bank and will open accounts in only one branch. Opening current accounts in convertible pesos does not demand a permit from BCC. The exchange rate to be used in transactions is the same used by the population for purchasing convertible pesos.
It states that, in addition to current accounts, non-agricultural cooperatives will be able to work with the following accounts as well:
- Expenses account: it receives funds from other accounts of the holder, opened in the same bank.
- Fixed term deposit: it keeps funds temporarily available for a certain period of time. It accrues interests as long as the agreed period of time is honored. Its funds can only be transferred to the current account they were originally moved from.
- Financing account: it is linked to a financing granted by a financial institution. It can only make payments in accordance with the purpose of the credit. It will be closed as soon as the funds have been used in full.
- Incomes account: it is exclusively opened for receiving incomes that will be periodically transferred to a current account of the holder.
This new non-state management mean can also request escrow accounts; namely, those accounts “established in accordance with a financing agreement and constitute a guarantee for the lender for amortizing debts through the deposit of funds or the flow of incomes”.
In this regard, BCC noted that “once the payment obligation has been met, the surplus produced in escrow accounts can only be transferred to the current account of the borrower”.
The Regulations recently set on bank accounts to be used by first degree non-agricultural cooperatives points out that these accounts “can useinstruments and titles established in the banking regulations for receivable and payable payments, from their accounts, for mercantile operations”.
Furthermore, “the payment of obligations such as taxes; contributions; electricity, telephone, gas, water and other services derived from the activities authorized can be made directly from currents accounts by means of a payment instrument agreed between both parts or stated by BCC”.
Finally, the Resolution adds that: “in case of termination of the non-agricultural cooperative or in any other similar lawful situation, the bank will debit the holder’s obligations with the bank and the remaining balance will be availa
Authors
Redacción OnCuba,
OnCuba
