Netherlands supports Cape Verde budget with 14 million euros for 2007/2008

14 June 2007

Praia, Cape Verde, 14 June – The Netherlands plans to support Cape Verde’s state budget this year and next, with 14 million euros, according to a protocol signed Wednesday in Praia.

The agreement for the 2007/2008 period was signed by the Foreign Affairs minister, Victor Borges, and by the Dutch ambassador to cape Verde, Johannes Jansing.

The Netherlands, along with other countries (such as Portugal, Spain and China) and institutions (such as the International Monetary Fund (IMF) and the African Development Bank – ADB), is one of Cape Verde’s biggest donors.

Budgetary aid, rather than support for specific projects, is a new model of aid, which began to be put into practice this year in Cape Verde.

The archipelago is due to become classified as a medium-income country, which may lead to the country losing some aid it currently receives, namely benefits such as low interest rates, long repayment period on loans.

The group for Supporting the Transition of Cape Verde to the condition of Medium Income country met in Praia Tuesday looking to draw up measures that will not penalize the country starting in January, that is in order for Cape Verde to continue to benefit from external aid.

The World Bank and the African Development Bank have committed themselves to providing Cape Verde with credit after the country’s transition to a Medium Development Country. (macauhub)