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HAVANA (AP) — Western Union closed its 407 places throughout Cuba on Monday, a sanctions-driven transfer that can go away hundreds bereft of remittances on an island that relies upon closely on them — or pressure them to make use of much less dependable methods to usher in cash.
The closure of places of work which have operated for greater than 20 years in Cuba resulted from a barrage of sanctions that the administration of U.S. President Donald Trump imposed whereas courting conservative Cuban-American voters in Florida forward of the Nov. three election.
“The issue will not be the closure of Western Union, however that Western Union is virtually the one U.S.-to-Cuba supplier of remittance funds,” stated Manuel Orozco, director of the Heart for Migration and Financial Stabilization at Inventive Associates Worldwide, a development-oriented advisory agency in Washington, D.C. “The impression will likely be felt.”
Whereas Cuba doesn’t publish figures on remittances, economists estimate it receives billions of {dollars} a 12 months and Orozco stated that roughly half comes from the USA and 20 p.c of the general whole by Western Union.
Some Cubans stated they have been stunned by the approaching closures regardless of the sanctions being introduced in late October. Eighty-two-year-old retiree Luis Nuñes stated he discovered when his son referred to as him on Sunday evening and deposited $200 for him.
Many lamented the closures and the necessity to discover much less handy or extra expensive alternate options.
“Now we have different methods as a result of there are personal companies that take it to your own home … nevertheless it’s not the identical,” stated Esperanza Piñeda, a 62-year-old retired trainer.
Household and pals overseas can nonetheless use different banks, businesses and small casual companies to ship cash to folks Cuba, or relay it by guests travelling to the island by Havana’s airport, which reopened this month. They’ve even used cryptocurrency, famous Cuban economist Omar Everleny Pérez.
Granma, the Communist Get together’s official newspaper, stated Monday that the closures hit the most secure option to ship cash to Cuba for individuals who can’t journey ceaselessly to the island or don’t need to depend on third events.
Trump’s administration has taken greater than 200 measures towards Cuba in recent times, together with limiting journeys, barring cruise ship visits and limiting remittances to $1,000 per particular person per quarter.
These have been a extreme blow for a lot of on an island whose tourism trade was devastated by the pandemic and which has seen lengthy traces for meals and gasoline and associated shortages all year long.
One of many latest sanctions hit Western Union by banning its Cuban companion firm, Fincimex, from dealing with remittances due to its ties to the military-run firm Gaesa. U.S. officers accuse Cuba’s navy of supporting Venezuela and systematically violating human rights.
Cuba’s authorities has refused to make use of a finance firm not related to its navy, and Western Union’s effort to discover a method across the sanctions was to no avail.
John Kavulich, president of the New York-based U.S.-Cuba Commerce and Financial Council Inc., stated that whereas U.S. President-elect Joe Biden is count on to remove the cap on remittances subsequent 12 months, it’s unlikely he’ll enable Western Union to make use of Fincimex in order to keep away from angering a bipartisan group in Congress.
And even when that does occur, Orozco warned it’s not simple to raise present sanctions or impose that type of change shortly, including that it could take a minimal of six months.
Andy Gómez, a retired professor of Cuban research on the College of Miami, stated he doesn’t imagine Cuba will likely be a precedence for Biden given all of the home points weighing down his agenda.
“I’d say Cuba will not be on the checklist,” he stated. “What nationwide pursuits are there in Cuba that has a constructive impression in the USA? Completely none.”
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Coto reported from San Juan, Puerto Rico.
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