Cabo Verde government provides financial guarantee to real estate company Imobiliária, Fundiária e Habitat

2 December 2013

Cape Verdean real estate company Imobiliária, Fundiária e Habitat (IFH) plans to issue bonds to a total of 1 billion Cape Verdean escudos (9 million euros), which will be guaranteed by the Cabo Verde (Cape Verde) state, according to the archipelago’s official bulletin.

According to the resolution published in the official newspaper, the government has launched the “houses for All” programme and has started implementing it by signing up for a credit line from Portugal, worth 220 million euros.

In 2011 the IFH took responsibility for the programme, “which led to significant pressure in terms of organisation, logistics and materials, with an increase in its financial responsibilities, particularly fixed costs.”

By taking on the State’s role IFH also took responsibility for finding local funding of 580 million escudos, as well as the fact that in January 2014 a 420 million-escudo loan, taken on to build the “Palmarejo Grande” housing estate, is due to mature.

All these obligations, along with other smaller one, require IFH to increase its financial capacity to an estimated 1 billion escudos, according to the Cape Verdean press. (macauhub)