In a move to boost its budding private sector, Cuba announced Thursday plans to provide individuals with easier access to bank loans and and to pay private-sector workers in convertible currency.

The government will diversify payment warranty options for Cubans who want to acquire bank loans, which previously could only be guaranteed with cash, the official daily Granma reported.

Options added to payment guarantees include jewelry, precious gems, objects of cultural value, vehicles, agricultural goods and summer homes.

The newspaper said the country's economic reality forced financial institutions to study alternatives to cash, adding that the value of these assets will be based on market prices.

The Cuban government, headed by Raul Castro, hopes that the new credit policy will spur private sector initiatives in farming and other sectors.

Loans granted by banks are in Cuban pesos (CUP), one of the two currencies used on the island that equal to 1/24 U.S. dollar. The other is Cuban Convertible pesos (CUC) which is equal to U.S. dollar in value.

Most Cubans receive salaries in CUPs, though many items are sold in CUCs. But under the new plans announced Thursday, state companies and government agencies would be allowed to pay private-sector workers or suppliers in (CUC). Cuba's average monthly salary stands at 465 CUP (about 17 CUC or U.S. dollars).

According to Granma, the Ministry of Economy and Planning published a list of jobs that will pay in CUCs, including food services, minor repairs, plumbing and others.

But the government still bans such payments in cash, which are only allowed via checks or local credit cards, as well as other instruments.

The Central Bank of Cuba reported that it has granted 133,291 loans between January and November last year, and it expected a loan growth in the future.