Bankia, one of the most important banks in Spain, announced the culmination of its activities in Cuba, after ending the liquidation of the Havana Financial Corporation (CFH) it had on the island, EFE reported.
This firm, created by Bankia in 1998, when the bank was called Caja Madrid, was intended to support entrepreneurs investing in Cuba.
Caja Madrid signed an agreement in October this year with the state-owned Banco Popular de Ahorros (BPA), and set up a company with a capital of just $ 5 million, about $ 4.2 million. euros at the current exchange rate, to advise Spanish companies. This was the first mixed capital financial institution incorporated in Cuba.
Its objective was to support companies that operate or want to establish their activity in Cuban territory, from advice on commercial or investment operations to financing, including loan and credit operations, discount and forfaiting of commercial effects, and foreign trade operations, as indicated on the entity’s own website.
After the incorporation of Bankia, Caja Madrid contributed to the group its 60% stake in CFH, with a symbolic activity, and other investments in different companies, such as the City National Bank of Florida, and the Spanish Iberia, MAPFRE or Iberdrola.
Bankia had not been able to sell the Cuban company until now, the license expired 20 years after it was granted, that is, in October 2018.
When that date came, Bankia decided it was time to start liquidating the company, a process that has now culminated, as detailed in the 2020 closing accounts.
The announcement is not good news for foreign investors in Cuba, especially Spanish ones, who have repeatedly complained about the Cuban government’s delay in meeting its utility payments and honoring the debts they accumulate with various companies.