MIRA INFORM REPORT

 

 

Report Date :

06.09.2012

 

IDENTIFICATION DETAILS

 

Name :

BANCO NACIONAL DE CUBA

 

 

Registered Office :

Aguiar 456 e/ Amargura y Lamparilla, Municipio Habana Vieja, La Habana

 

 

 

 

Country :

Cuba

 

 

 

 

Date of Incorporation :

23.12.1948

 

 

 

 

Legal Form :

Government Agency

 

 

 

 

Line of Business :

International banking organisation.

 

 

 

 

No. of Employees :

787

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Cuba

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

CUBA - ECONOMIC OVERVIEW

 

The government continues to balance the need for loosening its socialist economic system against a desire for firm political control. The government in April 2011 held the first Cuban Communist Party Congress in almost 13 years, during which leaders approved a plan for wide-ranging economic changes. President Raul CASTRO said such changes were needed to update the economic model to ensure the survival of socialism. The government has expanded opportunities for self employment and has introduced limited reforms, some initially implemented in the 1990s, to increase enterprise efficiency and alleviate serious shortages of food, consumer goods, services, and housing. The average Cuban's standard of living remains at a lower level than before the downturn of the 1990s, which was caused by the loss of Soviet aid and domestic inefficiencies. Since late 2000, Venezuela has been providing oil on preferential terms, and it currently supplies over 100,000 barrels per day of petroleum products. Cuba has been paying for the oil, in part, with the services of Cuban personnel in Venezuela including some 30,000 medical professionals.

Source : CIA

 

GEOPOLITICS – CUBA

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Republic


Economic Risk: High

Currency: 100.00 CUP  =  3.77358 USD

Branch Situation: Medium

 

 

IDENTIFICATION

 

Legal Name:

BANCO NACIONAL DE CUBA

 

 

Legal Address

Aguiar 456 e/ Amargura y Lamparilla, Municipio Habana Vieja, La Habana, Cuba.

 

Operative Address

Aguiar 456 e/ Amargura y Lamparilla, Municipio Habana Vieja, La Habana, Cuba.

 

Telephone:

(537) 62-8896 // 537) 66-9512

 :

N.A.

Fax:

(537) 66-9390

Legal Form:

Government Agency

Email:

N.A.

Registered in:

Cuba

Website:

N.A.

Date Created:

1948

Manager:

Ileana Martínez Cabrera, Director.

Date Incorporated:

December 23, 1948

Staff:

787

Stock:

N.A.

 

 

Value:

N.A.

Activity:

International banking organisation.

 

 

BANKS

 

Name of the Bank

Banco Nacional de Cuba

 

BUSINESS

 

HISTORY

 

The subject was created on December 23, 1948.

 

On February 23, 1998, Decree-Law No. 181 is promulgated including the structure, functions and activities assigned which pertain to an international banking organization.

 

PRINCIPAL ACTIVITY

 

It operates as the Cuban central state bank, with organic autonomy, independent legal status and assets of its own.

 

Products/Services description:

 

Among its functions are the following:

 

*To obtain and grant credits in national currency and in freely convertible currency.

*To issue bank guarantees of all kinds under previous evaluation of the economic-financial management of the requesting entity.

*To issue, accept, discount, guarantee and negotiate bills of exchange, promissory notes, checks and other documents related to trade, which may be negotiable, denominated in national or foreign currencies.

*To fix interest rates to operations effected by the Bank under the limits established by Banco Central de Cuba.

*To constitute official export credit insurance entities according to the effective legislation with regard to insurance.

*To keep record and control, service and handle the foreign debt that the Cuban Government and Banco Nacional de Cuba have contracted with foreign creditors to the date.

 

Operations area:

 

International.

 

 

The subject employs 787 employee(s)

 

Comments on staff:

 

The figures were not disclosed by the subject. They were conciliated with our private sources and from a particular analysis of the company´s structure.

 

 

PAYMENTS

 

Unknown

LOCATION

Headquarters

 

The subject is headquartered at: Aguiar 456 e/ Amargura y Lamparilla, Municipio Habana Vieja, La Habana, Cuba.

 

Comments on location:

 

Headquarters.

Branches:

 

The bank operates several offices throughout the Cuban territory.



Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

NO

Shareholders Parent Company(ies):

 

The subject is a public government organisation.

Management:

 

Ileana Martínez Cabrera, Director.



Financials - COMMERCIAL TRENDS AND FORECAST

 

The subject does not publish any financial statements.

At this time, the 2011 financial figures were neither revealed nor released to our sources.

 

Legal Filings

The sources consulted record no detrimental legal or labor court information.

 

 

Rating

 

Local credit bureau gave a LOW credit rate.

 

 

 Final Opinion

 

The country risk in Cuba will always be rated as “high”, as long as the political organization of the State is submitted to the socialist premises, jointly with the economic blockage made by the Kennedy administration in 1962.

 

The economical risk is determined by the consequence of those two elements. The Socialist State oriented premises makes the burocracy of the ruling party take care of the economy, which is, and has to be, planned after the consequences of the blockage.  The blockage makes Cuba one of the less developed countries in Latin America, with a high indebtedness ratio and no possibilities of incorporating added value to the economy. There are no Foreign Direct Investments (FDI) and neither a strong inner market to sustain any offer exceeding basic and only structural needed products, all of them controlled and directed by the State.

 

Therefore, there is a complete lack of competitiveness, which makes the economy operating in an always struggling scenario.

 

 

SUMMARY

 


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

 

Profitability

N.A.

Public

NO

 

Indebtedness

N.A.

Payments

UNKNOWN

 

Cash

N.A.

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.55.89

UK Pound

1

Rs.88.63

Euro

1

Rs.70.02

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.