Cape Verdean government creates mutual guarantee company and considers venture capital fund

28 November 2012

Mutual guarantee company CV Garante is due to be established in Cape Verde in the next few days, Cape Verde’s Prime Minister, José Maria Neves said Monday, adding that the government was also considering setting up a venture capital fund.

Mutual guarantee companies are financial operators that provide banks with the guarantees they need to provide loans to small and medium-sized companies with more favourable conditions, including lower interest rates and longer repayment periods, as they share the risk that the loans imply.

A mutual guarantee is a private mutual system that supports micro, Small and medium-sized companies essentially by providing financial guarantees to make it easier to secure loans at appropriate prices and repayment periods.

At the parliamentary session that launched the discussion of the 2013 State Budget, the Prime Minister noted that the two institutions would support entrepreneurs and the creation of micro, small and medium-sized enterprises.

Neves also said that the government had a portfolio of investments awaiting approval worth around 700 million euros for the 2012 to 2016 period.

“The effects of these new investments in the economy will begin to be felt as of 2014/2015, although some projects have already been negotiated and will begin in 2013,” he said, adding that they involved internationally renowned groups and would introduce healthy competition into the tourism sector as well as calling other international hotel groups to the market. (macauhub)