Tuesday, January 6, 2015

Give credit where it's already overdue

The comrades at Morning Star: the Peoples Daily, aren't so doctrinaire that they would refuse to avail themselves of capitalism's financial services, in a noble cause;
US farmers say that the main barrier to sales to Cuba is Washington’s ban on providing credit to the island. That wouldn’t change under reforms proposed by President Obama last month.

His proposals do include a slight relaxation of US rules on Cuban payments to US farmers, allowing Cuba to pay for goods once they are delivered rather than before they are ordered.

However, US law still prohibits any form of credit to Cuba’s state-run import agencies, which routinely ask to spread payments for goods ordered over several years.
Food that will be consumed almost immediately should be paid for over several years? Won't that be a problem when Cuba wants to buy more food next year, and the next one after ...? What business would agree to that:
Those repayment terms are often granted by the Brazilian and Spanish food companies whose products fill the shelves of many Cuban supermarkets.
Brazilian and Spanish food companies who are demanding to be paid for what they've delivered already, and won't sell more to Cuba until they are?

1 comment:

  1. I think it was Lenin who said that the capitalists would sell the communists the credit which they would deny repayment with.

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