Cabo Verde Government continues to pay arrears

18 August 2017

The Government of Cabo Verde (Cape Verde) is continuing to pay off State debts with the signing on Friday in Praia of an agreement with the Caixa Económica de Cabo Verde bank that establishes the forms and conditions of payment of interest subsidies and of other debts, according to an official statement.

The State owes Caixa Económica about 900 million escudos (US$9.5 million), according to an announcement by the finance minister.

Last week, the government reached an agreement with Banco Comercial do Atlântico (BCA) of Portuguese state financial group Caixa Geral de Depósitos to settle a debt of 2.399 billion escudos (US$25.5 million).

The Cape Verdean state’s debts to the BCA related to interest subsidies from 2004 to 2016, taxes paid and not due between 2005 and 2015 and to two bank guarantees.

When this agreement was signed, Finance Minister, Olavo Correia, noted his government considers the State to be self-respecting and is therefore working to pay off all arrears.

The minister pointed out that the government cannot set subsidies in the State Budget and then transfer those responsibilities to the private sector and gave assurances that “from now on everything will be different, with the State setting the example for society and for the economy.” (macauhub)