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The Cuban regime approved a comprehensive package of 176 economic and social reforms this Thursday, which includes the authorization of private banking, the creation of private currency exchange houses, greater openness to foreign capital, and profound changes in the system of state subsidies.
The measures were presented by Prime Minister Manuel Marrero Cruz during the Third Extraordinary Session of the National Assembly of People's Power, held at the Palace of Conventions in Havana, amid the worst economic crisis the island has faced in decades.
According to Marrero, the proposals are organized into 23 strategic axes and aim to address what the government itself has described as the most complex situation since the Special Period of the 1990s.
Among the most significant reforms is the authorization of private banking institutions, an unprecedented measure since Fidel Castro came to power in 1959. The package also includes the transformation of state-owned enterprises into joint-stock companies, allowing the participation of individuals and non-state actors in their capital.
The energy sector is also among the areas affected by the changes. The new regulations will allow the participation of private and foreign investors in activities related to the import and marketing of fuels.
The changes also impact the national private sector. The government will eliminate the limit of 100 employees for micro, small, and medium-sized enterprises (mipymes), will allow the same person to own multiple companies, and will authorize share participation in various businesses.
In the financial sector, authorities announced the creation of private currency exchange houses, a real-time digital exchange market, and a currency auction system, measures aimed at addressing the growing exchange rate distortion affecting the Cuban economy.
The program also includes gradual adjustments to the official exchange rate of the Cuban peso. Marrero warned that those state-owned enterprises unable to adapt to the new economic conditions could be liquidated.
Another of the most significant changes for the population will be the transformation of the subsidy system. The subsidized basic basket will be concentrated on retirees and individuals considered vulnerable, while generalized subsidies for products and services will be gradually replaced by targeted assistance.
The government also plans to gradually introduce a Value Added Tax (VAT), a tax system that has not previously been part of the Cuban fiscal framework.
The approval of the measures followed the usual procedure of the Cuban political system. After being announced by Miguel Díaz-Canel on June 12 and subsequently supported by the Central Committee of the Communist Party, they were presented to the National Assembly for ratification.
Marrero revealed that during the process, 390 proposals for economic and social transformation were evaluated. As he explained, 66.7% were incorporated into the final document, along with dozens of additional recommendations made by the Political Bureau.
To defend the need for changes, the Prime Minister referred to a quote by Fidel Castro made during the economic crisis of the 1990s.
"Life, reality, the dramatic situation the world is facing compels us to do what we otherwise would have never done," he recalled.
The reforms arrive in a context marked by the sustained deterioration of the Cuban economy. International organizations anticipate a new contraction of the Gross Domestic Product in 2026, while the country faces prolonged blackouts, fuel shortages, declines in agricultural and industrial production, and one of the largest migration waves in its recent history.
The announcement also comes after Díaz-Canel publicly acknowledged that part of the crisis is due to internal problems.
"There are obstacles that do not come from outside or from blockades. There is slowness, bureaucracy, regulations that hinder those who want to produce, and decisions that we have postponed," he acknowledged during the closing of the Plenary of the Central Committee of the Communist Party.
The measures have sparked extensive debate among economists and citizens. While the authorities present them as a necessary update to the economic model, numerous analysts warn that they come after years of productive and financial deterioration, at a time when the Cuban economy is facing one of the greatest challenges in its recent history.
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