African Development Bank and Spain grant loans to Cape Verde

16 November 2009

Praia, Cape Verde, 16 Nov – The African Development Bank (ADB) plans to loan Cape Verde 40 million euros to contribute to a boost of public finances and improve the archipelago’s business climate.

Citing a government source, Portuguese news agency Lusa said that the loan was part of the Additional Budget to Support the Strategy to Reduce Poverty (PASRPII), which will be provided in two halves, this year and in 2010.

In its turn, Spain has granted the archipelago a loan of 4.5 million euros as part of the budgetary aid programme, which will be provided in two tranches, the first of which will total 3 million euros.

On signing the agreement, Spain’s ambassador to Cape Verde, Manuel Vilavieja, said that the budgetary aid provided by the Madrid government to Cape Verde had had “good results” and thus all eyes were now on future projects.

The Cape Verde budget proposal for 2010, approved by the Council of Ministers on 24 September last, focuses investment in infrastructures and combating the effects of the crisis on the economy. It outlines revenues of 399 million euros and expenditure of 553.2 million euros, which implies and 11.8 percent deficit. (macauhub)