The mutual counter-guarantee fund of mutual guarantee company Sociedade de Garantia Mútua de Cabo Verde (CVGarante) is due to start operating between July and August of this year, the president of CVGarante, Frantz Tavares, said cited by Cape Verdean weekly newspaper A Semana.
According to Tavares the biggest problem with small and medium-sized companies gaining access to funding is the counter-guarantees (collateral) required by banks – which is exactly the role played by CVGarante whose main aim if to improve companies’ access to credit.
However, CVGarante itself after beings et up for a year is waiting for the mutual counter-guarantee fund to be set up, which has affected businesspeople, even those with viable projects, as they are unable to access loans due to the guarantees required by the banks.
CVGarante is a credit institution set up by the Cabo Verde government with the support of financial institutions such as Portuguese mutual guarantee company Sociedade Portuguesa de Garantia Mútua, the Cabo Verde Agency for Business Development and Innovation and the Cape Verdean Foundation for School Social Action.
CVGarante, which was set up in 2013, had starting capital of 907,000 euros. (macauhub/CV)