Cabo Verde opens subsidised credit line to support private companies

25 April 2018

The government of Cabo Verde (Cape Verde) signed a protocol with the commercial banking sector to open a line of credit for companies worth 5, billion escudos (US$55.4 million), guaranteed by the State and with subsidised interest rates, at a ceremony on Tuesday in Praia, the capital of the country.

Prime Minister Ulisses Correia e Silva said at the time that the agreement signed “represents the concept of a partner state that believes that the economy can only grow in a sustainable way with private investment.”

“Cabo Verde needs to grow and create wealth in a sustainable way and at levels that increase its potential,” he said.

Deputy Prime Minister and Finance Minister Olavo Correia said that the government is creating the necessary conditions for the private sector to have access to financing, with the state as guarantor of the operation, “by subsidising 50% of the interest, provided that the projects are quality and have been positively assessed in terms of risk management.”

This credit line also includes other advantages such as a State guarantee of up to 50% of the amount of credit granted, a maximum repayment term of 15 years, including a maximum grace period of three years and a discount of 25% in commissions the bank charges companies.

The protocol was signed by Olavo Correia, representing the government, by the country’s banks (BAI Cabo Verde, Cabo-verdiano de Negócios, Comercial do Atântico, Interatlântico, Internacional de Cabo Verde, Caixa Económica de Cabo Verde and Ecobank Cabo Verde), the Chamber of Commerce, Industry and Services of Sotavento and the Barlavento Chamber of Commerce. (macauhub)