Cape Verdean airline TACV increases debts with new loan

13 October 2017

The government of Cabo Verde (Cape Verde) has authorised airline Transportes Aéreos de Cabo Verde (TACV) to take on a bank loan of 1.5 billion escudos (US$16 million) with a state guarantee, under a resolution published in the Official Gazette.

The loan will be provided by Banco Privado Internacional, Banco de Negócios Internacional, Banco de Negócios Internacional Europa and it is needed, according to the resolution, because of “the unfavorable economic and financial situation” that the company is going through.

The Cape Verdean government last July authorised TACV to take on another bank loan of 187 million escudos (US$2 million) with Banco Privado Internacional (BPI).

The Cape Verdean public airline is in the process of restructuring with a view to its privatisation, and the government has signed a one-year management contract with the Icelandair group.

With an accumulated liability of more than 11 billion escudos (US$118 million), the company now only offers international flights after the government negotiated exclusive domestic flights with Binter Cabo Verde and took a 49% in the company’s capital.

TACV offers scheduled flights to Europe, Brazil and the United States, but during the summer the company was forced to cancel almost all flights due to a breakdown in its only airplane, having to call other airlines to reroute passengers. (macauhub)