The Central Bank of Cuba has established rules for opening accounts and financing local development projects under Resolution 118/2026. The rules provide for accounts in Cuban pesos (CUP), foreign currency accounts backed by lawful funding sources, and lending through municipal development trust funds. They accompany a broader territorial development framework that expands municipal powers over resources and project approvals, sets a five-year project duration and limits projects to 100 hired workers. Banks open CUP current accounts under the approved project title, based on authorization from the municipal administration council or provincial governor. Eligible account operators include state entities, private businesses, cooperatives and other authorized individuals and organizations. Applicants must provide the project approval identifying its holders and the authorized financing amount and source. Projects with multiple holders must also submit an agreement specifying who may operate the account. Banks may request additional documents to meet know your customer and due diligence requirements. Account holders may request foreign currency accounts if they have access to lawful domestic or external funding sources. For economic and productive projects, municipal local development resources are transferred to a CUP trust fund held at banks and disbursed as loans subject to bank risk assessments. Borrowers pay 4% interest, retained entirely by banks as a fee for administering the fund. These projects may also obtain loans financed from banks’ own resources, subject to risk assessment and the minimum interest rate applicable to the approved term under central bank rules. Banks must require guarantees prescribed by existing legislation, including those municipal administration councils can provide through the Local Development Fund. Principal repayments on financing for projects approved before Decree 174 took effect are added to the municipal trust funds.
Central Bank of Cuba sets banking rules for local development projects, including 4% trust fund loans
The Central Bank of Cuba has set account-opening and financing requirements for local development projects, allowing CUP accounts and foreign currency accounts supported by lawful funding sources. Economic and productive projects can receive municipal trust fund loans at 4% interest, subject to bank risk assessment, or borrow from banks’ own resources at the applicable minimum rate. Principal repayments from projects approved before Decree 174 took effect will replenish municipal trust funds.