Cape Verdean government signs agreement to use credit granted by France

24 February 2010

Praia, Cape Verde, 24 Feb – The Cape Verdean Finance Ministry and National Association of Municipalities have signed the agreement for a 10 million euro credit line granted by the French Development Agency, indicates a ministry press release cited by Cape Verde’s Inforpress news agency.

The agreement signed last Thursday in Praia resulted from a protocol between the French Development Agency and the four commercial banks (Banco Interatlantico, Caixa Economica de Cabo Verde, Banco Comercial do Atlantico, Banco Caboverdiano de Negocios) to which municipalities must submit projects covered by the financing agreement.

The French agency also signed with the Finance Ministry a convention to provide 300,000 million euros to subsidize efforts to strengthen Cape Verdean local authorities’ ability to conceive investment projects and prepare the documents required by banks for project financing.

Under terms of the convention, the Cape Verdean state, via the Finance Ministry, pledges to pass the fund on to the National Association of Municipalities per the same terms offered by the French agency.

The association will then take charge of supervising use of those resources by the island country’s local authorities.