The government of Cabo Verde (Cape Verde) has authorised the country’s flagship airline Transportes Aéreos de Cabo Verde (TACV) to take on a loan of 2 million euros from Angolan bank, Banco Angolano de Investimentos, according to the Cape Verdean press.
The authorisation, to ensure that TACV keeps its financial commitments and can send aircraft engines for repair, was given because the carrier is “facing financial difficulties as a result of consecutive negative results.”
The resolution authorising the TACV to take on the loan, published in the Official Gazette states that the money will be used to balance operational activity, adjust investment capacity, ensure financial commitments are met on time, and pay for repairs of aircraft engines.
The government also authorised the Treasury to endorse TACV to securitise its loan portfolio, or convert those loans into cash through a bond issue in the amount of 950 million escudos.
On 4 November Prime Minister José Maria Neves announced the findings of a TACV audit would be published.
The prime minister added that the government could not find private partners interested in managing the company and acknowledged that the flag carrier is ” in a very difficult and complex situation”, given that costs are much higher than revenues, it has a liabilities of 10 billion escudos (around US$99 million) and insufficient equity. (macauhub/CV)