Title: Cuban Government Approves Spanish Company to Operate as Corporate Bank, Focusing on Large-scale Financing
Date: [Insert Date]
The Cuban government has granted authorization for the Spanish company Alto Cedro Finanzas Internacionales to convert into a corporate bank, enabling it to provide financial services to Cuban companies. The company, legally registered in Madrid, will be permitted to open accounts and offer financing, including managing risks and debtors. However, it will not extend its services to micro, small, and medium-sized enterprises (MSMEs), except for those previously authorized by the Central Bank of Cuba.
Alto Cedro Finanzas Internacionales, established in 2020 with a 3.5 million euro investment from Spanish magnate Javier Botín, a member of the esteemed Santander bank’s family, has been operating in Cuba as a non-banking international financial institution. The corporation sought a license from Havana to expand its operations, a request that has now been approved.
Under the new license, Alto Cedro will have the authority to open accounts in foreign currencies as well as pesos, provide loans, manage various types of risk, and monitor debtors. The company will also have the capacity to finance export and import operations, investments, and offer different financing modalities. Additionally, Alto Cedro will be allowed to issue securities, payment orders, drafts, collect payments, and transfer funds, among other services typical of corporate banking.
A source connected to the Alto Cedro board, desiring anonymity, stated that the corporation originally intended to work with MSMEs without restrictions. However, the Cuban government’s decision to restrict such access aims to benefit state authorities and the authorized MSMEs. Each paragraph of the new license includes the possibility of acquiring “special permits” from the Central Bank.
The financial director of Alto Cedro, Luciano Méndez, who was chosen by Javier Botín, is the director for Cuba at Sabadell, another prominent Spanish bank. Méndez has extensive experience in negotiating with Havana and has traditionally conducted Spanish banking business with Cuba. He has also openly advertised his position at Alto Cedro on his LinkedIn profile.
This latest license grants Alto Cedro the freedom to conduct “any other operation and services typical of corporate banking previously authorized by the Central Bank of Cuba,” suggesting that exceptions may be made as deemed necessary. The law also requires immediate notification of the permit to the general director of Alto Cedro.
In 2019, it was revealed in the Spanish daily newspaper “The Confidential” that Javier Botín had added Cuba to his investment agenda. Describing the country as a “hybrid transition” under the leadership of Miguel Díaz-Canel, Botín purchased a residence in Cuba, considering it one of his first international ventures. Botín’s intention was to encourage a select group of Spanish investors to explore business opportunities in Havana, reflecting the historical connection between his family and Cuba dating back to 1947 when Santander opened a branch in the city.
Alto Cedro was established by Botín, who drew inspiration from the experiences of prominent Spanish families, such as the Escarrers, the owners of the Meliá hotel chain, who achieved successful deals with the Cuban regime.
The key facilitator in establishing contact between Alto Cedro and Cuban officials in 2020 was Ricardo Cabrisas, the current Minister of Foreign Trade and Foreign Investment and the former vice president of the Council of Ministers. The conversation took place against the backdrop of Spanish Prime Minister Pedro Sánchez’s visit to Havana in 2018, which aimed to strengthen bilateral ties and attract more investors from Spain.
Javier Botín, the youngest of the brothers overseeing Santander, held the 98th position on the Forbes list of the richest individuals in Spain in 2019, with a fortune of 275 million Euros.
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