By GEORGE GEDDA
Associated Press

WASHINGTON -- In a rare visit to Washington, Cuban Central Bank
President Francisco Soberon on Tuesday outlined austerity measures Cuba
has imposed since the collapse of the Soviet Union in 1991.

The measures in some ways parallel steps often recommended by the
pro-capitalist International Monetary Fund.

Cuba is one of a small number of countries that do not belong to the IMF and
its companion institution, the World Bank, but Soberon came to Washington
as an observer for the semiannual meeting of the two institutions.

He said Cuba has reduced subsidies to state entities by 75 percent, and has
eliminated 19 state ministries and other national agencies -- almost 40 per cent
of the total.

In addition, Cuba has become far more hospitable to foreign investment, he
said.

Soberon spoke before a group of bankers, academics, government officials
and others at a session organized by three private research groups.

He described how Cuba was forced to undertake a series of reforms in the
wake of the collapse of the Soviet Union, its main partner in trade and
assistance. He said the number of independent farmers has increased to the
100,000 range and that Cubans who engage in once-forbidden
self-employment total about 150,000.

The budget deficit, he added, has been reduced to 2.5 percent of the total
budget compared with more than 30 percent five years ago.

The State Department normally does not grant visas to Cuban officials but
makes an exception for those wishing to attend meetings of multinational
institutions.

A U.S. law requires the President to take steps to block any Cuban bid to join
the IMF or the World Bank.

Soberon said he is not sure whether Cuba has any interest in joining. He said
the IMF generally offers the same formulas to all countries, regardless of
differing situations.

``We have a lot of doubts about their policies,'' he said. ``Each country
requires a different approach.''

He added that Cuba would feel uncomfortable in an institution like the IMF, in
which the United States has 15 percent of the voting power.

He also suggested that the IMF is insensitive to the social costs of its economic
reform policies. The IMF has been known, he said, to claim success even
though its policies have led to unemployment rates of 17 percent.

``I'd like someone to explain to me how you can have success with 17 percent
unemployment,'' he said.
 

                     Copyright 1999 Miami Herald