Cabo Verde airline TACV secures State guarantee for a US$5.5 mln loan

24 January 2018

The Cape Verdean government has granted a new state guarantee to Cape Verde’s Transportes Aéreos de Cabo Verde (TACV) airline on a US$5.5 million loan from Caixa Economica de Cabo Verde, according to a resolution published on Monday in Cabo Verde’s Official Bulletin.

The loan is intended to ‘wet-lease’ an aircraft (leasing an aircraft, crew, and maintenance from another airline) as the air carrier’s only jet aircraft has been stationary since last summer due to the failure of one of the engines.

This new guarantee from the State follows another one authorised in July 2017 to secure a loan of 1.7 million euros from Banco Privado Internacional.

The Cape Verdean government also authorised TACV, through a state guarantee granted in October, to take on a 13.5 million-euro loan to pay compensation to staff laid off as part of the restructuring of the company.

The Cape Verdean flagship airline, with liabilities in excess of 100 million euros, is undergoing restructuring with a view to its privatisation, and the government has signed a contract with the Icelandair group to manage the company for a one-year period.

Last December, the finance minister said that the privatisation process for TACV should be completed by the end of the first quarter of 2018 after the company is valued. (macauhub)