Cuba will tap into investments from the diaspora to rescue its economy from the crisis

The Cuban government has officially allowed Cubans living abroad to invest in private companies on the island and establish their own financial institutions. 

Bloomberg reports this.

According to Minister of Foreign Trade and Investment Pérez-Oliva Fraga, the country is opening its doors to emigrants not only in the realm of small business but also for participation in key sectors of national development. This decision was made against the backdrop of a severe economic crisis and persistent demands from the Cuban community in Miami for market liberalization.

The implementation of this plan will depend on the development of detailed legislation that clearly defines mechanisms for capital protection in a context where the state remains the primary economic player. In addition to domestic reforms, Havana continues complex negotiations with the United States regarding the restoration of a stable supply of petroleum products. As Russia gradually loses its role as a key donor to the region due to its own isolation, Cuba is forced to seek new sources of external financing to sustain the island’s vital functions. Bloomberg experts note that the initiative’s success will directly depend on Washington’s future stance and the Cuban government’s willingness to guarantee the security of foreign investments.

Cuba is currently in the midst of a severe humanitarian crisis due to the oil embargo imposed by the Trump administration. The country has not imported fuel for three months, leading to the collapse of the power grid.

U.S. President Donald Trump stated that Cuba is on the brink of collapse and that the United States may intervene in the situation on the island in any form.