Cape Verde: Association of real estate agents proposes creation of investment fund

24 March 2009

Praia, Cabo Verde, 24 March – Authorities linked to the tourist real estate sector in Cape Verde called Friday for an investment fund of 100 million Euros to be set up and listed on the local stock exchange, to support companies in difficulty.

The idea was defended during a meeting which brought together operators and various public administration sectors to discuss ways of withstanding the crisis in the sector against the backdrop of the global economic crisis, which is already affecting Cape Verde’s tourism sector which represents 10 percent of the country’s GDP.

To this end, the Promitur Association of Promoters of Tourist Real Estate defended the creation of a real estate investment fund listed on the Cape Verde Stock Exchange to fund companies in difficulty by buying real estate assets with agreements for re-purchase and leasing.

“This is a secure operation for the State and another tool for the capitals market to facilitate access to financial aid for companies involved in projects of high national interest,” said Promitur president, Olavo Correia.

At the opening of the meeting, Cape Verde’s prime minister José Maria Neves, reaffirmed that the country was already beginning to feel the effects of the crisis.

He cited the reduction in the number of tourists visiting the country and in the demand for accommodation, as well as the decrease in overseas investment, remittance from emigrants and access to credit. (macauhub)