Remittance Payments in Cuba Delayed as Cuban Regime Imposes “Corralito” on Euros
Reports from several users indicate that the Cuban regime has imposed a “corralito” on remittances sent from abroad, particularly those in euros, resulting in payment delays of up to one month.
According to a client of the Popular Savings Bank (BPA) who chose to remain anonymous, payments for September shipments were only made in December, highlighting the delay in remittance payments.
The issue appears to be mainly affecting regions outside Havana, such as Santiago de Cuba, Mayabeque, and Camagüey, although it is not exclusive to these areas.
A recent Facebook post by the BPA received comments from users questioning the delay in remittance payments from abroad. One user, Melissa Fernández Miranda, expressed frustration over the non-arrival of money posted from Italy in December.
An employee of the BPA in Santiago de Cuba confirmed the cumbersome procedure that recipients of remittances are forced to navigate. Recipients are required to visit the bank, make a reservation, and wait to be notified by phone when the money is available for pick-up.
The wait for remittance payments can range from a week to a month, depending on “availability,” according to the BPA employee. Additionally, it was revealed that there are more issues with euros in provinces outside of Havana, while transactions in dollars encounter fewer problems.
Independent consultant and economist, Ángel Marcelo Rodríguez Pita, highlighted the struggles faced by residents of Italian and Swiss origin on the island, who have experienced delays of up to six months in receiving pension and retirement payments.
Furthermore, recent data from the Cuban Observatory of Human Rights (OCDH) revealed that 27% of the population in Cuba receives remittances, yet 41% of beneficiaries encounter difficulties in purchasing essentials for their survival.
In response to the delays and difficulties faced with traditional remittance channels, alternative networks have emerged, promising fast and higher-value local transfers to Cuba. These networks operate outside of the state exchange rate, offering significantly more favorable terms.
The Cuban regime has expressed interest in “incentivizing the capture and recovering remittance flows,” as it acknowledges that a significant portion of remittances take alternative routes rather than going through financial institutions, presenting a challenge for the regime.
Ultimately, the delays and hurdles experienced by Cubans in accessing remittance payments highlight the need for alternative solutions amidst the Cuban regime’s tightening control on remittances.