Cape Verde’s public debt should reach 98 percent of GDP in 2014

8 October 2013

A forecast included in the proposed state budget law indicates that Cape Verde’s public debt should reach 98 percent of gross domestic product in 2014, reports the Cape Verdean press citing the Minister of Finance.

After delivering the budget bill to Parliament, Minister Cristina Duarte acknowledged the high public debt but said it “remained sustainable” and “did not endanger our payment capacity”.

She specified that two other ratios (debt service/exports and debt service/revenue) were also sustainable, adding that “as we improve our export capacity the trend is for those ratios to improve, which has happened in the last three years”.

The Cape Verdean newspaper A Semana reports that the forecast of public debt at 98 percent of GDP in 2014 is six percentage points higher than the figure recorded this year and 13 points higher than in 2012, when it stood at 85 percent.

Duarte said the proposed law considered a budget deficit of 7.4 percent, the same as in 2013, to be financed by low-interest loans, and that forecasted economic growth was between 3.5 and 4 percent, up from the 2 to 3 percent projected for this year. (macauhub)