Government of Cabo Verde not interested in taking stake in TACV Internacional airline

9 June 2017

The Cape Verdean Finance Minister said on Thursday that the State has no interest in taking a stake in the capital of the TACV Internacional airline and that there will be no increase in taxes to pay the debt of 12 billion escudos (109 million euros), “about 9 to 10% of GDP.”

Olavo Correia said at the end of the meeting between the government and the Budget Support Group (GAO) that the airline was one of the themes of the meeting, one of the recommendations being that the government should find a quick solution to the problem of the air carrier.

The World Bank suspended aid to Cabo Verde (Cape Verde) until the government presented a plan to restructure the airline, with the finance minister admitting that the situation remains unchanged.

GAO members have urged the government of the archipelago to “act swiftly” to seek to reduce public debt, which in 2016 rose by 4.4 percentage points to the current 132.2% of Gross Domestic Product (GDP).

The recommendation came out of the first meeting of 2017 of the evaluation mission of the GAO, which ran all week and concluded its work on Thursday.

Members of the GAO – the African Development Bank, the World Bank, Luxembourg, Portugal and the European Union – were “encouraged” by the economic performance achieved by Cabo Verde in 2016, a year in which the economy grew by 3.9%, compared to 1.1% in 2015 and the budget deficit fell by one percentage point to 3.6%.

The overall amount of aid for 2017 was not disclosed, but recent figures provided by José Manuel Pinto Teixeira show that this year Cabo Verde has already received 17 million euros from the European Union in aid to the state budget. (macauhub)