Cabo Verde Government creates public institution to support micro, small and medium enterprises

21 June 2018

Sociedade de Garantia Parcial de Crédito (Pró-Garante) is a new Cape Verdean financial institution with exclusively public capital, created to facilitate access to the financing by micro, small and medium enterprises (SMEs) in the archipelago, under Decree-Law No. 32/2018 of 19 June.

Pró-Garante, which is headquartered in Praia, will support MSMEs by providing guarantees to eligible credit institutions regulated and supervised by the Bank of Cabo Verde to make applying for credit easier along with providing guarantees for special credit lines to meet obligations to entities that provide these credit lines.

The new company will also provide counter-guarantees to the operations of other eligible financial institutions that provide credit guarantees to SMEs, to manage, on behalf of third parties, guarantee funds to improve access to MSME financing and to support the expansion of other financial instruments that improve access to financing.

Pró-Garante is subject to the supervision of the Bank of Cabo Verde and its starting capital is 1 billion Cape Verdean escudos, entirely provided by the State and/or other public institutions, and is authorised to establish forms of cooperation with national and foreign entities, according to Regional Coordination of the Legis-PALOP+TL legal database. (macauhub)