Cape Verde and China sign agreement for social housing loan

16 February 2012

Praia, Cape Verde, 16 Feb – China has granted Cape Verde a US$51 million loan to build social housing per an agreement signed on Wednesday in Beijing, reports the Cape Verdean press.

With an annual interest rate of 2 percent and a maturity of 20 years, the loan follows the framework agreement signed in Praia last 4 January by the State Secretary for Foreign Affairs, José Luís Rocha, and China’s ambassador in Cape Verde, Li Chunhua.

The agreement is complemented by an Exchange of Notes regarding an interest-free loan of US$12 million signed on the same day to cover the process of financing the loan, which is to be used to build 1,600 social housing units meant to improve the living conditions of more than 6,500 low-income citizens.

The Cape Verdean Foreign Ministry highlighted the Chinese government’s positive response to the request by Cape Verde’s government for special project financing conditions, combining a subsidised loan with another interest-free one so that the state treasury is not burdened during the amortisation phase.

The agreement/loan was signed in Beijing by Cape Verde’s ambassador in China, Júlio Morais, and the vice-director general of the Subsidised Loan Department of the Export Import Bank of China (Exim), Wang Fade. (macauhub)