Bankia, one of the main banks in Spain, announced the end of its operations in Cuba, following the liquidation of the Havana Finance Corporation (CFH) that it had on the island, EFE reported.
Founded by Bankia in 1998, when the bank was called Caja Madrid, this company was designed to support entrepreneurs investing in Cuba.
Caja Madrid signed an agreement with the state-owned Banco Popular de Ahorro (BPA) in October of that year and formed a company with a capital of only $ 5 million, about 4.2 million euros at the current exchange rate, to advise companies in Spanish. . This was the first mixed capital financial entity to be established in Cuba.
Its purpose was to support companies operating or seeking to establish their operations in Cuban territory, from advising on commercial or investment activities to financing, including loan and credit transactions, rebates and forfaiting commercial papers and foreign trading activities, as indicated on the entity’s own website.
After the establishment of Bankia, Caja Madrid contributed its 60% stake in CFH to the group, with a symbolic activity, and other investments in various companies, such as the City National Bank of Florida, and the Spanish Iberia, MAPFRE or Iberdrola.
Bankia had so far failed to sell the Cuban company, whose license expired 20 years after the grant, i.e. in October 2018.
When that date came, Bankia decided it was time to begin the liquidation of the company, a process that has now reached its peak, as detailed in the closing accounts for 2020.
The announcement is not good news for foreign investors in Cuba, especially the Spanish, who have repeatedly complained about the Cuban government’s delay in meeting its profit payments and meeting the debts they have accumulated with various companies.