The Fundo de Garantia Mútua (Mutual Guarantee Fund – CV Garante) of Cabo Verde (Cape Verde) will be provided with 50 million escudos to support micro and small business to access financing from banks, Cape Verdean weekly newspaper A Semana reported.
The regulation approving the fund was published in the Official Gazette, and the Minister of Tourism, Investment and Business Development, Leonesa Fortes, gave assurances it would start operating.
“Right now, the fund already has resources to operate. There were a few more instruments that needed to be created, namely the management company, which in addition to public entities, also involves private entities,” said the minister.
Fortes said the maximum loan available to the companies is of around 10 million escudos and the fund offers a guarantee of 50 percent of that amount. The companies that will benefit from the CV Garante fund will pay a service fee for the sustainability of the fund.
Business owners who want to benefit from government support should submit the relevant projects, initially to CV Garante to assess the feasibility and risks before they are approved for access to bank loans. (macauhub/CV)