Cape Verde’s state budget to include foreign aid of 21 million euros

14 November 2011

Praia, Cape Verde, 14 Nov – The Cape Verde State Budget will this year receive foreign aid of 21 million euros, the Budgetary Aid Group (GAO) told Cape Verde’s Finance Minister during the this year’s second evaluation meeting, the Cape Verdean press reported.

The Cape Verdean press also said that the group, headed up by the European Ambassador to Cape Verde, Josep Coll, had positively evaluated the government’s performance, but had also left recommendations, particularly about power company Electra and flagship airline TACV.

“It became more or less clear that Cape Verde has known how to manage the international crisis, since 2009. However, in 2011 there are worrying signs, not only from the Cape Verdean government, but also from our international partners, which are about the behaviour of international revenues,” said Cristina Duarte at the end of the meeting.

In relation to the “deterioration of the indicators,” the mission, which includes representatives from Portugal, Austria, Spain, Luxembourg, the European Union (UE), the African Development Bank (BAD) and the World Bank, said it was due to “worsening of the global economic and financial crisis.”

Duarte said that the GAO had, “asked the government to be cautious and to look at the question of macro-economic stability once again taking into account the high levels of uncertainty in terms of the international context, particularly in the Euro zone.”

In his turn, Ambassador Josep Coll said it had been made “clear” that the Cape Verdean government was paying attention to developments, which was proven by contingency measures that had been taken, such as the introduction of the Plan to reduce Public Expenditure which, according to Duarte, had allowed the state to save 1.5 billion Cape Verdean escudos.

The greatest concern, the ambassador said, was related to the “excessive” weight of two state companies on the state’s accounts: Electra and Transportes Aéreos de Cabo Verde (TACV). (macauhub)