Caixa Económica bank buys debt of Cape Verdean flagship airline TACV

7 January 2016

Cabo Verde (Cape Verde) savings bank Caixa Económica will buy the entire debt of Cabo Verde’s flagship airlines Transportes Aéreos de Cabo Verde (TACV) from Cape Verdean banks, according to a government resolution published in the Official Gazette.

Under the resolution, Caixa Económica will pay out 1.2 billion escudos (US$11.6 million) for this risk operation endorsed by the Directorate General for the Treasury, wrote Cape Verdean weekly newspaper A Semana.

In the text published in the official gazette, the government qualifies this new bailout of TACV as a financial reorganisation measure of the carrier, which last December was suspended from the IATA Clearing House for not replacing the guarantee required for all airlines.

With this operation, TACV sees the maturity of its loans raised to 15 years, whilst benefiting from a lower interest rate and when the credits are covered by real estate and equipment collateral there will be a further reduction in interest rates.

The remainder of the carrier’s debt has mostly been consolidated through guarantees previously issued for each financial institution, the resolution said.

The main shareholders of Caixa Económica de Cabo Verde are the National Social Security Institute, with 32.18 percent, Geocapital, Sociedade de Gestão de Participações, 27.44 percent, Correios de Cabo Verde, 15.14 percent and insurance company Impar, 12.07 percent. (macauhub/CV)