"Now Even Cards Can't Be Used?"... Cuba's Economy Collapses Under Trump Administration's Pressure

Global Companies Rush to Exit Cuba

Fincimex Now Subject to U.S. Sanctions

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According to Yonhap News, citing the Spanish-language media outlet Infobae and others on June 5, the use of Visa and Mastercard will be completely suspended in Cuba starting June 6 (local time).

The Central Bank of Cuba announced in a statement, "As of June 2, we have been notified by foreign banks processing Visa and Mastercard payment operations in Cuba that they will terminate their relationship with Fincimex."

Up until now, credit card transactions in Cuba had been processed through Fincimex, the financial subsidiary of the Cuban military-industrial conglomerate GAESA. Fincimex is currently subject to U.S. sanctions.

Previously, on May 1, the Donald Trump administration froze GAESA’s assets in the United States in an effort to cut off funding to the Cuban regime, and also placed foreign companies cooperating with GAESA under sanctions.

As a result of these so-called "maximum pressure" measures by the U.S., there has been a rush of global companies withdrawing from Cuba.

Global shipping companies, including CMA CGM of France and Hapag-Lloyd of Germany, have suspended bookings for cargo bound for Cuba. Sherritt, the Canadian mining company that had been extracting nickel and other resources in Cuba, also withdrew last month.

There has also been a rush of withdrawals by global hotel chains. Meliá, the largest hotel chain in Spain, announced the previous day that it would cease all operations in Cuba. Meliá had operated 15 hotels in the country. Following Iberostar of Spain, Blue Diamond Resorts of Canada, and the Asian hotel group Archipelago, Meliá is the fourth major hotel chain to halt its hotel operations in Cuba.

GAESA controls up to 70% of the Cuban economy and oversees most overseas joint ventures, so the departure of foreign financial institutions and global companies is expected to continue for the time being.

Daniel Toralbas, a Cuban economist, said, "With all these global companies leaving Cuba, the short-term blow to the Cuban economy will be catastrophic."

Meanwhile, the U.S. government reportedly expects Cuba to collapse as early as this summer, and has recently conducted war game simulations in preparation.

This content was produced with the assistance of AI translation services.