Cuba freezes assets of foreign businesses

Cuba orders extreme measures to cut energy use

 

Cuba has ordered all state enterprises to adopt "extreme measures" to cut energy usage through the end of the year…

 

In documents seen by Reuters, government officials have been warned that the island is facing a "critical" energy shortage that requires the closing of non-essential factories and workshops and the shutting down of air conditioners and refrigerators not needed to preserve food and medicine.

 

Cuba has cut government spending and slashed imports after being hit hard by the global financial crisis and the cost of recovering from three hurricanes that struck last year.

 

All provincial governments and most state-run offices and factories, which encompasses 90 percent of Cuba's economic activity, were ordered in June to reduce energy use by a minimum of 12 percent or face mandatory electricity cuts.

 

…Cuba was consuming more fuel than the government had money to pay for.

 

…Cuba has been grappling with the global economic downturn, which has slashed revenues from key exports, dried up credit and reduced foreign investment.

 

…the government has cut spending, slashed imports, suspended many debt payments and frozen bank accounts of foreign businesses. It reported last week that trade was down 36 percent so far this year due mainly to a more than 30 percent reduction in imports.

 

Marc Frank

Reuters 11 Nov 2009 21:58:49 GMT