Havana, Jun 3 (EFE).- The Central Bank of Cuba (BCC) reported on Wednesday that the international financial services providers Visa and Mastercard will cease operations in Cuba as of June 6 to avoid sanctions resulting from the May 1 Executive Order by United States President Donald Trump.
»This termination is directly related to Executive Order No. 14404 of May 1, issued by the President of the United States of America, Donald Trump, as part of his strategy to strangle the Cuban people,» the BCC stated.
The foreign private bank that handled transactions, whose name was not disclosed by the BCC, notified the monetary authority that it was terminating its relationship with the Cuban financial institution Fincimex, part of the military-owned business conglomerate Gaesa, to avoid sanctions.
The BCC added that as a result of this decision, «Cuba is unable to receive revenue from the sale of goods and services through widely accepted international payment cards such as Visa and Mastercard.»
The withdrawal of this bank effectively severs all of the island’s financial connections with the outside world, intensifying Washington’s pressure on the island, which the US government seeks to force into adopting sweeping political and economic reforms.
The US is thus escalating the pressure it has been exerting on Cuba since January, when it imposed an oil embargo that has effectively paralyzed much of the country’s economic activity, as the island produces only 40% of its energy needs.
The Executive Order of May 1 imposed sanctions on individuals and companies maintaining economic, commercial, or financial ties with the Cuban government, particularly in the energy, financial, and defense sectors.
On May 7, Gaesa, Cuba’s largest state-owned company, estimated to account for 40% of the island’s gross domestic product (GDP), was sanctioned, prompting many companies to sever ties with the entity, which has a presence in nearly all economic sectors.
This context includes the total or partial withdrawal of the main foreign hotel chains from the island, such as the Spanish companies Meliá and Iberostar.
The Canadian mining company Sherritt, the largest foreign investor in Cuba, announced a month ago its immediate withdrawal from the island in the wake of US sanctions. EFE
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