Cuban Government Dissolves Giant State Enterprise - CUBALSE

[magbana]

"Cuban Government Dissolves Giant State Enterprise

HAVANA – The Cuban government is dissolving the state-run Cubalse corporation, which provides a wide range of goods and services to foreign diplomatics and businessmen, officials with the firm told Efe on Wednesday.

“Cubalse is in the process of dissolution and absorption by other (state entities),” one employee said. “This change is a necessity for the country.”

The corporation arise in 1962 from the fusion of state entities dedicated to “recovering” (confiscating) assets like antiques, jewelry and porcelain, and providing hard-currency-denominated services to the foreign diplomatic corps.

Cuba uses two currencies: the ordinary peso, worth less than 4 cents; and the convertible peso, or CUC, which is equivalent to $1.08. While salaries are paid in ordinary pesos, hard-currency stores accept only the CUC.

By the end of 1998, Cubalse had become a holding company with 20 subsidiaries, including a wide network of stores, markets, bakeries and sweet shops, and it also provided catering, veterinary and photographic services, all priced in hard currency.

The employment agency of Cubalse provided personnel to diplomatic missions, business delegations, international organizations and foreign press agencies.

It also arranged sales of automobiles and motorcycles, advanced technology, cargo transport, construction and investment, among other things. EFE

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