Cabo Verdean state reinforces position in Novo Banco to attract investors

24 August 2015

The government of Cabo Verde has handed over to Novo Banco a group of state-owned buildings in order to increase its stake in that financial institution, reports the Cabo Verdean newspaper Expresso das Ilhas.

The buildings to be shifted to Novo Banco are worth between 8 million and 35 million escudos, for a total of 149.5 million escudos. They are situated in the districts of Achada de Santo António, Achada Grande Trás, Palmarejo and Palmarejo Baixo, among others.

“The credit resulting from disposal of the buildings referred to in the previous article helps strengthen the state shareholder’s position in Novo Banco by increasing the company’s share capital,” reads point 2 of article 2 of the respective resolution.

In Resolution 76/2015 the government explains the reason for the disposal. It indicates that in the event of non-compliance “by Novo Banco regarding the stipulated conditions” the buildings can revert to the state.

The government asserts that this investment is due to the state’s need to strengthen its position as a shareholder of Novo Banco and is “basically meant to make the entity more financially robust, stimulating the attraction of new partners.”

Current shareholders of Novo Banco de Cabo Verde include Correios de Cabo Verde (25 percent), Imobiliária, Fundiária e Habitat (25 percent), Caixa Económica Cabo Verde (20 percent), Instituto Nacional de Previdencial Social (20 percent), Estado de Cabo Verde (5 percent) and Banco Português de Gestão (5 percent). (Macauhub/CV/PT)