The government of Cabo Verde has reached agreement to settle debts amounting to 21.7 million euros with Banco Comercial do Atlântico (BCA) of the Portuguese state financial group Caixa Geral de Depósitos, under an agreement signed on Wednesday in Praia.

The agreement to settle the Cabo Verdean state’s debts of over 10 years with BCA was signed by Finance Minister Olavo Correia and the chairman of BCA, António Castro Guerra.

Under terms of the agreement, Cabo Verde’s government will pay 1.093 billion escudos (9.9 million euros) corresponding to interest-rate subsidies from 2004 to 2016, an amount to be paid in the 12 months counting from 1 January 2018, with quarterly instalments and an interest rate of 4.375 percent.

The government will also pay 1.073 billion escudos (9.7 million euros) for taxes paid and not owed between 2005 and 2015, over seven years counting from 1 January 2018 and with an interest rate of 3.5 percent.

The payment of 233 million escudos (2.1 million euros) regarding two bank guarantees was also agreed.

Cited by Lusa news agency, the finance minister announced that an agreement would be signed next week to settle debts worth nearly 900 million escudos (8.1 million euros) with Caixa Económica de Cabo Verde.

Caixa Geral de Depósitos is the main shareholder of Banco Comercial do Atlântico, Cabo Verde’s biggest commercial bank, holding 52.5 percent of the capital. It also has a stake in Banco Interatlântico. (Macauhub)