Spain joins Austria in financing Cape Verde’s state budget

22 February 2006

Praia, Cape Verde, 22 Feb – Spain is due to begin supplying a direct contribution to Cape Verde’s state budget, as Austria recently said it would, doing away with a project-based financing model, Cape Verde’s local press reported Wednesday.

According to the online version of newspaper, A Semana, the Spanish government recently informed Cape Verde that it planned to provide budget funding and would send a delegation in March to assess the country’s public finance system.

The change in financing is in line with recent recommendations from the Development Assistance Committee of the Organization for Economic Cooperation and Development (OECD), which suggested the change, considering the progress made by Cape Verde’s public financing.

An Austrian delegation is also due to visit the archipelago in March to assess public accounts and discuss methods of supervising the new financing model with the Ministry of Finance.

The two countries will also finalize a new Indicative Cooperation Program (PIC) for 2006/2008 and a memorandum of understanding on budget support.

A new budget financing agreement is also due to be signed by the archipelago and the World Bank, to the value of 10 million euros.

The Netherlands and the European Union have directly financed Cape Verde’s budget since 2004 rather than offering project-based funding. (macauhub)