Cape Verde government sets up social bank with Banco Português de Gestão

1 March 2010

Praia, Cape Verde, 1 March – The Cape Verdean government in partnership with local public entities and Portugal’s Banco Português de Gestão (BPG), made the creation of Novo Banco official, a socially-focused bank to provide support to micro, small and medium-sized companies.

The government will provide 5 percent of the starting capital, with the local Finance Ministry having worked on the project for the last two years whilst also trying to encourage several companies and public and private institutions to take a shareholding in the bank.

Amongst them are postal service Correios de Cabo Verde, Imobiliária, Fundiária e Habitat (IFH), Instituto Nacional da Previdência Social (INPS) and Caixa Económica de Cabo Verde (CECV), the latter being the first private financial institution to show its availability to take a stake of up to 20 percent.

The proposal was approved at a general meeting of Caixa Económica in September 2009 with the aim of boosting the capital of Novo Banco, which is governed by the statutes and special legislation for credit institutions and financial companies, as well as by commercial law.

BPG will have a 10 percent stake which, according to the Cape Verdean press, is worth 300 million Cape Verdean escudos (around 2.8 million euros).

The aim of the new institution is, amongst other things, to bring segments of the population with lower incomes into the formal economy along with micro and small companies that do not use banking services, thus combating financial exclusion in Cape Verde. (macauhub)