Jaime Reusche, Vice President and Senior Credit Officer at Moody’s Investors Service, joined us on Bold Business to discuss President Donald Trump’s new policy on Cuba, which rolls back some measures taken by the previous Obama administration to ease sanctions on travel, trade and other financial transactions with Cuba. Watch here or on our Facebook page.
Jaime, a Moody’s sovereign debt analyst, is the author of a new Moody’s report called “US Revision of Cuba Policy Is Negative for Island,” which points out that the re-opened U.S. embassy in Cuba will remain. This implies that collaboration will continue on a range of issues, Moody’s said, including migration, security, disaster relief and other areas on which the two countries have been working together.
Under President Trump’s policy changes, the United States would henceforth strictly enforce a ban on tourism to Cuba and would prevent the flow of dollars to the Cuban government, forbidding U.S. businesses from making transactions with entities tied to the Cuban military. In response to the looser policies enacted by the Obama administration, Moody’s placed a positive outlook on the island nation, though that could change in light of a likely drop in tourism to Cuba, the biggest source of revenue, or what Jaime called, its “staple.”
“For Cuba, it’s really a lost opportunity,” Jaime said on Bold TV. “It’s more, ‘What could have come to Cuba?’ And that’s what’s being jeopardized.”
One of our Bold Business hosts, David Grasso, is not only Cuban-American, but also recently traveled to Cuba to visit his family there. Grasso reflected on his travels, as well as the dynamics of the Cuban economy. No matter your political views, the recent travel restrictions raise questions on what’s next for the island economy.
Jaime also shared more about his work at Moody’s, which includes sovereign analysis on other countries like Mexico, Peru, and Venezuela.