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A man tries to get money at an ATM just outside a Metropolitan Bank in Havana. (14ymedio)

14ymedio bigger14ymedio, Zunilda Mata, Havana, 25 May 2017 — Finding a little bottle filled with coins that her father hid in the patio was something that happened to Eneida when she was young; now she’s a retired and says that financially she’s “escachada, without a single peso in the bank.” Her family inherited an old mansion in the center of Santa Clara, and also the determination not to put their savings in the hands of the state.

Each month, the pensioner goes to the nearest ATM, takes out the amount of her retirement, equivalent to about $12, and stores it inside an old coffee can. “I prefer to have it close because in most stores there are problems paying with a magnetic card.”

The Santa Claran also fears the authorities because, in her opinion, “you never know when they will confiscate something.”

Eneida has bad memories. Her father owned a bodega that was nationalized during the 1968 Revolutionary Offensive, and before that the small business owner had lost some of his savings with the paper currency swap decreed by the government in 1961. “He kept in the house what little they didn’t take from him,” recalls his daughter.

“He kept in the house what little the state didn’t take from him,” recalls his daughter

Since then more than half a century has passed, but many citizens are still wary of putting their money in government-run institutions.

The banking system is made up of nine banks, 14 non-bank national financial institutions, nine representative offices of foreign financial institutions and one in the process of registration. For Eneida all these entities are “the same dog but with a different collar.”

In Havana, the Metropolitan Bank seeks to attract more customers at all costs, but to the mistrust of banks is added the poor service at its branches. The long lines outside the offices and the few economic incentives to keep the money in their safes discourage savers.

The interest rates approved by the Central Bank determine that a fixed-term deposit of 72 months accumulates 7% of its amount. However, the dual currency system makes that figure ridiculous.

“I saved a third of my salary for five years to pay for my daughter’s fifteenth birthday party,” says Teobaldo, a 47-year-old from Las Tunas who transports goods from private markets to paladares and cafes. “I put it in the bank and I had no problem, but I had the illusion that the money would grow more.”

Theobald came to have the equivalent of 1,800 CUC with which he paid for the drink and the food of the party, as well as the cake and the cars to make a tour of the city and the photos of the honoree. “I had to ask my brother to send me more money from the United States for clothes, flowers and the hiring of musicians,” he adds.

It is not the mistrust of young people that guides them to not having bank accounts, but the economic precariousness of the day-to-day

As soon as his daughter’s birthday came, the small entrepreneur took all of his savings from the bank. “I did not want to set off the alarms,” he explains. In 1993, the government launched an offensive known as Operation Potted Plant aimed at confiscating products and imprisoning those who possessed “illicit money.”

The crusade became a hunt against the new rich. “If you had a nice house, air-conditioning and a well-painted façade, they would come down on you,” says Teobaldo. The Operation prosecuted two brothers  for “illicit enrichment.” One of them raised pigs and the other sold gold jewelry. After several years in prison they ended up emigrating.

Younger people see it differently. It is not mistrust that guides them to not have bank accounts, but the economic precariousness of the day-to-day. “Save money?” a young student at the University of Pedagogical Sciences who works during non-school hours as a messenger to distribute the Weekly Packet, asks with disbelief.

“Having savings is a thing for the rich,” he says. Most of their his live on what the parents give them or earn their own living, “but there is not enough to save,” he says.


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