United Kingdom to donate US$530,000 per year to Cape Verde over next 15 years

1 September 2006

Praia, Cape Verde, 01 Sept – The British government has donated US$530,000, or the equivalent of 10 percent of the archipelago’s debt to the World Bank and the African Development Bank (ADB), the online version of Cape Verdean newspaper, A Semana reported.

According to the paper, which cited a letter sent by the British government to Cape Verde’s Finance and Public Administration Minister, João Serra, the donation would be sent within three to ten days to Cape Verde’s treasury.

The donation will not change debt servicing to the two financial institutions, as Cape Verde will continue to pay off its loans, which total some US$5 million, the paper said.

This donation given to Cape Verde, similarly to other African countries, is a complementary measure to the debt pardon that the G8 (group of the world’s seven most industrialized nations, plus Russia) has been putting together and which aims to compensate nations that meet good governance criteria.

The US$530,000 will be channelled to the country’s State Budget and are expected to be used as part of its Poverty Reduction Strategy Papers, as outlined in the memorandum of understanding signed in July between the United Kingdom and Cape Verde.

The country will benefit from this donation every year for the next 15 years as long as continues with its economic growth and poverty reduction strategy, within the World Bank’s assessment criteria. (macauhub)