Cabo Verde’s economy needs more credit and lower interest rates

14 August 2017

Cabo Verde (Cape Verde) needs “more credit for the economy and lower interest rates,” said the country’s Finance Minister, who acknowledged that the current situation does not facilitate the country’s development, according to the local press.

Minister Olavo Correia said it was also important to create conditions for the private sector to have access to financing, as “only in this way will we have the necessary requirements for our economy to grow and evolve at much higher rates than we are seeing today.”

Recognising the important role played by the banking system, Olavo Correia gave assurances that the government is committed to creating an appropriate environment to innovate, produce and export, in which commercial banks will have a role to play.

The minister added that the government is preparing to set up guarantee funds to share with commercial banks the risks associated with lending to micro, small, medium and large companies operating in Cabo Verde.

“The government is analysing the possibility of setting up a public institution to boost venture capital in the country,” said Correia.

The minister spoke at a session held last week where an agreement was signed for the settlement of debts amounting to 21.7 million euros to Banco Comercial do Atlântico (BCA), of Portuguese state financial group Caixa Geral de Depósitos (CGD). (macauhub)