Novo Banco to start operating in Cape Verde on 7 October

4 October 2010

Praia, Cape Verde, 4 Oct – Novo Banco, a financial institution that aims to provide support to the less fortunate classes of the population and micro, Small and medium-sized enterprises, is due to start operating Thursday in the city of Praia, the capital of Cape Verde, Minister Sara Lopes said Saturday.

The information was given by the Minister for Decentralisation, Housing and Land Planning of Cape Verde to Portuguese news agency Lusa on the sidelines of the second edition of the International Construction and Housing fair (FICH).

The decision to create a social bank, with starting capital of 300 million Cape Verdean escudos (around 2.78 million euros), was made at the end of February by the Cape Verdean government, which associated Banco Português de Gestão (with a 10 percent share) to a partnership with local public bodies.

The aim is, amongst other things, to channel lower income segments of the population into the formal economy along with micro and small companies not associated to a bank, thus combating financial exclusion in Cape Verde.

The government will have a 5 percent stake in the company, with the local Finance Ministry working on the project for over two years whilst trying to encourage private and public companies and institutions to be part of the bank’s shareholder structure.

These include Cape Verde’s postal system, Correios de Cabo Verde, Imobiliária, Fundiária e Habitat (IFH), social security institute, Instituto Nacional da Previdência Social (INPS) and bank Caixa Económica de Cabo Verde (CECV), the latter being the first private financial institution to show its availability to take up to a 20 percent stake in the bank. (macauhub)