Rising debt charges are forcing Cuba to reshape its Soviet-style economy, with leading creditor China among those cheering on the changes.
A Cuban Communist party congress, scheduled for April, will discuss and likely ratify policies that are already starting to be implemented. These include reducing the number of state workers by 20 per cent, cutting social benefits, eliminating state subsidies, improving Cuba’s trade balance and liberalising rules for small business and foreign investment.
Cuba, which is the subject of a strict US embargo and is excluded from most international lending organisations, depends on China as a creditor of last resort. Its proposed reforms are remarkably similar to those typically required under International Monetary Fund bail-outs – although privatisation of state assets is not on the agenda.