Brazil to open credit line to Cape Verde

24 April 2007

Lisbon, Portugal, 24 April – Brazil’s National Bank of Social and Economic Development (BNDES) plans to open a line of credit to allow companies in Cape Verde to import products from Brazil, officials have said.

The head of Brazil’s Department of Foreign Trade, Luciene Ferreira Machado, told Portuguese news agency Lusa that the initiative was a response to a request from two Cape Verdean banks to underwrite imports from Brazil.

The process is “being evaluated”, added Machado, and will likely be approved by the Brazilian authorities within two months.

BNDES currently operates a US$ 205 million credit line to Angola, set to rise to US$ 750 million by the end of 2008, and has been approached by the Sao Tome government for similar financial facilities.

Brazil’s credit line with Angola is mainly used to fund infrastructure projects being undertaken by construction groups Odebrecht, Andrade Gutierrez and Camargo Correa.

Brazil’s exports to Angola climbed by 60 percent in 2006 compared to the previous year to reach a value of US$ 836 million, more than double the amount recorded in 2004. (macauhub)