Major free-market reforms take effect in Cuba

Foreigners can now invest in Cuban real estate and domestic companies can import and export without government intermediaries under reforms implemented this week aimed at ending a severe economic crisis.

The free-market reforms had been unveiled in June by Cuba's communist leadership as the island teetered on the brink of collapse after five months of a US fuel blockade.

Under immense pressure from Washington, Havana announced 176 measures throwing the island open to private investment in everything from banking to tourism and agriculture.

The government on Wednesday began implementing the changes through a flurry of decrees, resolutions and regulations.

One decree authorized private Cuban companies to work directly with foreign investors, hold accounts in overseas banks and import and export goods without going through state intermediaries.

Previously, most foreign investors were required to form joint ventures with the state.

Some of the other reforms include authorizing the establishment of private companies of more than 100 employees and allowing privately owned banks, pharmacies and gas stations.

President Miguel Diaz-Canel has denied that the measures represented the introduction of capitalism by stealth, saying that they aim to "preserve" socialism.

The private sector is already filling the vacuum left by a collapsing Cuban state.

According to official data, more than 15,000 small and medium-sized enterprises currently operate in Cuba and employ more than a third of the working population.

Private companies now dominate food and fuel distribution.