Cape Verde: Brazil converts US$4 million debt into funding for Education

29 January 2009

Praia, Cape Verde, 29 Jan – The debt owed by Cape Verde to Brazil, totalling US$4 million, is to be converted into funding for Education projects on the archipelago, Cape Verde’s Director-General for the Treasury said in Praia Wednesday.

The decision was made during a two-day meeting between the two governments, aimed at resolving the problem of the debt, which dates back to 1983.

At the beginning of the meeting, director-general Rosa Pinheiro, had said that the Cape Verde government preferred for the debt to be pardoned, but if that was not possible that she would like to see the debt converted into cooperation projects.

Brazil’s ambassador in Praia, Dulce Barros, said that, “all the interests that Cape Verde wanted to see a solution for have been understood,” and that the solution for the debt was not to be put forward to the Brazilian government.

The two governments are due in March to sign an agreement that will put an end to the entire issue.

The debt dates back to 1983 and was the result of a loan from the Bank of Brazil for the modernisation of Cape Verde’s telecommunications. (macauhub)