Visa And Mastercard Payments Suspended In Cuba Following US Sanctions

Visa and Mastercard payments in Cuba will be suspended from Saturday after US sanctions prompted a foreign bank to sever ties with a state-backed financial institution, Cuba's central bank said Wednesday.

Washington-Havana relations have tumbled as the United States has slapped sanctions on Cuba, which has also been under a US-imposed energy blockade since January.

Sanctions have notably targeted Cuba's military conglomerate and major economic player GAESA by freezing its US assets and penalizing companies that work with it.

These companies have until Friday to adjust their activities, according to the US Office of Foreign Assets Control (OFAC).

In a statement released Wednesday, Cuba's central bank said a foreign bank was severing ties with Fincimex S.A., GAESA's financial arm, due to US sanctions.

"On June 2, we received a communication from the foreign bank that processes transactions carried out in Cuba using Visa and Mastercard, informing us of its decision to terminate its relationship with Fincimex S.A.," it said.

"As a result of this decision, Cuba is unable to receive income from the sale of goods and services through internationally established cards such as Visa and Mastercard," the statement added, without naming the foreign bank.

Sanctioned companies could have their assets frozen or encounter difficulties in accessing the international financial system.

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