The collapse of its key economic and political allies has prompted Cuba to re-engage with the international community. Moreover, the promise of an end to sanctions from long-time antagonist the US has given Western businesses the hope of valuable business deals – but can they see eye to eye? Silvia Pavoni reports.

While Cuba is intent on updating its socialist economy and keen for the US embargo to be lifted, the workings of commercial creditors in pursuit of repayment reveal the extent of the challenges facing the country. This is sovereign debt restructuring, but not as we know it.

The announcement in December 2014 of a restoration of normal relations between Cuba and the US shocked many, and thus far very little opposition has been registered. However, this inactivity should not shroud the challenges that lie ahead for both countries, says Peter Hakim of Inter-American Dialogue.

The US's decision to normalise relations with Cuba promises to create new opportunities for American banks looking to expand. But, with the US government's changes still to be finalised, the country's banks are reacting cautiously.

With Cuba facing another round of austerity measures, its population is pinning its hopes on vast quantities of oil being found in the drilling operations going on off the country's coast. However, the president of its national assembly remains cautious about any potential oil boom, and stresses that the country cannot neglect its agriculture and business sectors.