CubaHeadlines

Frustration Mounts in Jovellanos: Workers Struggle to Access Full Wages

Wednesday, December 11, 2024 by Isabella Rojas

The situation at a bank in the municipality of Jovellanos has ignited widespread frustration among residents, particularly affecting workers who, after long hours at their jobs, are compelled to wait in lengthy lines to access only a portion of their wages. This everyday scene across various parts of the nation underscores the liquidity crisis and the enforced banking system, which has further complicated access to cash.

In front of the Jovellanos bank branch, over 150 people—primarily workers and retirees—gathered, voicing their grievances about being able to withdraw just a fraction of their salary. "The bank only disburses funds on Tuesdays and Thursdays, forcing many of us to skip work to collect our pay," explained one of those affected. Rather than aiding customers, this policy has sparked chaos, prolonged waits, and growing public anger.

Reports indicate that from the 4,000 pesos a worker might earn, they are only allowed to withdraw 2,000. What's more, this cash is provided in low-denomination bills like 5, 10, or 20 pesos, creating additional frustration as many small businesses refuse to accept such bills, compelling people to seek ways to exchange them, thereby heightening their desperation.

"We've become so modern that we now have cards, but there's neither enough power nor money," remarked a citizen with palpable irony and frustration. This comment highlights the stark contrast between the government's rhetoric of banking modernization and the harsh daily reality faced by the populace.

The challenge of accessing cash is not unique to Jovellanos. Across different cities in Cuba, citizens endure long queues, limits on cash withdrawals, and low-denomination bills, complicating access to essential goods. In Santiago de Cuba, people line up from the early morning hours to withdraw pensions or salaries. Workers face this ordeal monthly, leading to complaints about the inhumane conditions, especially for the elderly, many of whom spend the night on the streets hoping to access their money. Witnesses report that "most don't even hope to get cash," as banks fail to meet public demand.

The rushed and mandatory banking process initiated by the government has been cited as a key factor in the current liquidity crisis. Juana Lilia Delgado Portal, the head of the Central Bank of Cuba (BCC), acknowledged that "there's more money in the country than ever," yet admitted that the cash flow has reversed, causing difficulties in meeting public needs.

This situation has forced the Bank of Credit and Commerce (BANDEC) in Sancti Spíritus to halt ATM reloads, compelling citizens to withdraw funds at bank counters, further lengthening lines and escalating social discontent. Government strategies, such as advising the use of "Caja Extra" services in state-run stores, have not alleviated the issue. Complaints persist as many such establishments lack the capacity to provide this service. Meanwhile, the extensive lines at ATMs and banks nationwide reveal the banking system's inability to meet the demand for cash, with critical situations in places like Santiago de Cuba, Bayamo, Havana, and Las Tunas. Public grievances are centered on the government's failure to deliver tangible solutions, despite numerous public complaints.

Understanding the Banking Crisis in Cuba

What is causing the liquidity crisis in Cuba?

The liquidity crisis is primarily attributed to the government's accelerated push for a banking system that has complicated cash access, coupled with an imbalance in cash flow within the economy.

How are citizens affected by the banking issues in Jovellanos?

Residents face long waits and can withdraw only a portion of their wages in low-denomination bills, affecting their ability to make purchases and leading to significant frustration.

What measures have been taken to address the banking crisis?

Efforts such as promoting "Caja Extra" services have been attempted, but have largely failed due to lack of infrastructure and preparation in many establishments.

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