Transportes Aéreos de Cabo Verde airline no longer has public funding

12 May 2017

The government of Cabo Verde (Cape Verde) will no longer subsidis the country’s flagship airline Transportes Aéreos de Cabo Verde (TACV), said the country’s Foreign and Defence Minister Luís Filipe Tavares at the end of Thursday’s meeting of the Council of Ministers.

The minister also announced that the Council of Ministers mandated the Finance and Economy and Employment ministers, Olavo Correia and José Gonçalves, respectively, to have the TACV restructuring plan approved by the Cape Verdean parliament for “immediate implementation.”

Tavares said the restructuring aims to improve the market value of the company and ensure that until the conclusion of the privatisation process, “continuous losses and accumulated debt of more than 90 million euros cease to be a threat to the financial stability of the country.”

TACV has annual funding needs of between 18 million and 30 million euros, and the minister recalled that the company reported a loss of 22 million euros in 2014, 35 million euros in 2015 and 17 million euros in 2016.

The World Bank representative for Cabo Verde, Louise Cord, recently revealed that budget aid to Cabo Verde will remain suspended until a TACV restructuring plan is presented, highlighting the fiscal risks that the current situation poses. (macauhub)