HAVANA, Feb. 4 (Xinhua) -- The Cuban government is studying the issuance of sovereign bonds out of the commercial banking system, Cuban Minister of Finance and Prices Meisi Bolanos has said.
"It is something under study, which is being evaluated so that the business sector can get in," the minister told a press conference held here on Monday.
Bolanos said that the effort aims to create conditions for more economic actors to have access to the bonds with returns in different installments.
Currently, the issuance of Cuban government bonds takes place only within the commercial banking system, and qualified institutions can acquire the bonds with a 20-year maturity term at an annual interest rate of 2.5 percent, according to Cuban law.
Cuba foresees a fiscal deficit of 7 billion pesos (7 billion U.S. dollars) for 2020 and expects to partially offset the budget deficit through issuance of sovereign bonds.
Compared with the previous year, the budget has risen by 11 percent, which "will allow sustaining salary increases in the budget sector ... benefiting more than 1.4 million workers," the minister said.
"No nursery, school, university, home for the elder, or health care center will be closed in Cuba," the minister said.
Cuba faces tense economic and financial prospects due to the reinforcement of sanctions imposed by the United States.
