In an interview with Prensa Latina, Carola Salas, director of the Center for International Economic Research (CIEI) at the University of Havana, explained that Cuba needs to obtain such capital in the financial markets, something complex since the country is not a member of any of the international institutions dedicated to it.
The World Bank, as an example, has a set of five agencies specialized in financing issues, but since Cuba cannot be part of those organizations, it is more difficult for it to obtain capital from those sources.
However, there are options linked to regional banking entities, the nation is a member of the Central American Bank, but even so it is necessary to diversify the ways to obtain financial resources, the doctor in Economic Sciences said.
Currently, Cuba has access, basically, to commercial suppliers and in this case, the poor quality and high cost of the financing we receive is par excellence, she said.
According to Salas, Cuba must adopt economic policy decisions to achieve more attractive investments in the midst of a complex context of low growth and reinforcement of the financial, economic and commercial blockade imposed by the United States.
This situation triggers the country’s risks and we are currently on the limit, if we reach a lower category, the specialized agencies propose not to invest due to the danger of placing capital in a nation with probabilities of non-payment, the researcher explained.
Therefore, there must be a prioritized policy to honor international commitments and for this it is necessary to create a fund destined to pay the foreign debt, she stressed.
If you do not pay your debts, you do not receive loans, and if you receive them, they would be under more onerous conditions, so there will be no growth, and without this, the possibility of non-payment is greater. This is a vicious circle in terms of indebtedness, as happened in the 1980s in Latin America, she explained.
We cannot run that risk again, she stressed, we have to pay in order to grow, because we cannot grow without international financing and in order to access it we have to comply with a series of parameters from the point of view of the country’s financial credibility.
At this moment, we are in a complex situation, once again, with non-payments on renegotiated debts, this reduces opportunities for the entry of international capital, financial flows, foreign investment in the quality and quantity that the country requires, the professor at the University of Havana noted.
Cuba needs to design an economic policy strategy to turn it into an attractive destination for investors, the expert considered.
In that regard, the importance of leading foreign investment through more diverse paths, with access to financing of different magnitudes, whether small or medium, without ruling out large capital for centralized state projects, she noted.
There are also opportunities arising from new economic stockholders such as the micro, small and medium enterprises (MSMEs), through the possibilities of establishing direct links with international capital.
This could undoubtedly stimulate the entry of capital flows and, even in small amounts, move the domestic economy and even link foreign investments with exports.
All this dynamic, she pointed out, requires a transparent environment, well-designed and proactive economic policies, linkages among domestic economic stockholders, together with the proposal we can have for international capital.
In a context of a very strong US economic blockade, it is possible to find the existing potentialities if we have a well-designed, articulated and attractive policy, since investors run many risks on Cuba, she said.
It is a pending matter to establish a policy that will turn Cuba into an attractive destination for investors and international financing, despite the complex external situation, external economic agents and Washington’s blockade, she concluded.