Cuba's Prime Minister Manuel Marrero today highlighted that among the proposed economic transformations, modernizing the banking and financial system and allowing private capital participation in that activity is of vital importance.

During his address at the extraordinary session of the National Assembly of People's Power at the Palacio de las Convenciones, he explained that in this way, private banking could operate under the supervision of the Central Bank of Cuba. He also noted that the transformations seek to eliminate restrictions on foreign currency payments and allow legal entities and individuals to open foreign currency accounts without lengthy bureaucratic procedures.

Additionally, Marrero indicated, the proposal includes creating financial entities specialized in virtual assets. Restoring the role of bank credit as an essential function in the economy and simplifying its approval processes, formalizing remittance flows through a private channel, and designing other ways to capitalize banks are among the proposals, he said.

Likewise, the transformations are aimed at resizing the official foreign exchange market, with the participation of non-state economic actors, which includes granting licenses for private currency exchange operations and implementing a foreign currency auction system.

Marrero explained that successive devaluations of the national currency are projected to reduce exchange rate differences and establish a "single exchange window" for all economic actors.

The Cuban prime minister underscored the need to improve the tax system and design fees and incentives that favor production processes and agricultural activities. The transformations are also focused on updating the personal income tax and applying tax incentives to those who finance investments in the social sector.

All these proposals, Marrero emphasized, seek to secure the social conquests of the Cuban Revolution and confront the complex scenario on the island derived from the intensification of the U.S. blockade and sanctions.