Law Changes Projected to Dynamize Foreign Investment in Cuba

Yanet Vazquez, Cuba's Vice Minister of Foreign Trade and Foreign Investment, stated today that the recently announced measures to stimulate the influx of foreign capital will require changes to legislation concerning foreign investment.

In statements to the national press during the Havana International Fair (FIHAV 2025), she explained that in the short term, work is underway to modify Decree 325, the regulation for the Foreign Investment Law, to streamline procedures and reduce processing times.

She affirmed that such actions can be implemented using the possibilities offered by the current Law 118.

However, the Vice Minister specified that more profound changes will be enshrined in a new Foreign Investment Law, a draft of which they plan to present to the National Assembly of People's Power in December 2026.

Another point she addressed referred to labor hiring. She clarified that, for now, personnel selection must still be carried out solely through authorized employing entities.

Nevertheless, as an exception, direct access to the workforce will be evaluated with foreign investors on a case-by-case basis, a long-standing demand from the sector, Vazquez emphasized.

Furthermore, she announced an imminent Decree Law, currently under consultation with the State Council, that will regulate business partnerships between state-owned enterprises and the non-state sector.

This legal framework will allow for two modalities: economic association contracts and the creation of limited liability companies, she detailed.

Regarding SWAP operations (debt-for-asset swaps), the Vice Minister was emphatic: "We are not going to apply a debt 'shot.' We would not be exchanging assets for debt."

Instead, she added, the possibility will be offered to negotiate with assets to create medium- and long-term businesses that, in turn, allow for the reduction of accumulated debts with foreign companies.

Likewise, she stressed that in such operations, "we are not negotiating our sovereignty," as the future business projection maximizes the value of Cuban assets.

This Tuesday, Oscar Pérez-Oliva, Vice Prime Minister and head of Foreign Trade and Foreign Investment, reaffirmed that the Caribbean nation is betting on foreign investment as a "fundamental" component of economic and social development, as well as on the participation of all economic actors.

To this end, he pointed out, measures will be adopted aimed at making processes more flexible and efficient to create a more favorable environment for foreign investment and contribute to the development of the national economy.

As Pérez-Oliva recalled, Cuba is implementing a Government program to correct mistakes and re-energize the economy in a complex economic environment. This includes pressures from the United States (sanctions and an economic, commercial, and financial embargo), while there are also internal problems and deficiencies that the government seeks to eradicate.