Bank of Cabo Verde awaits CGD’s request to sell a stake in a bank

18 September 2018

The Bank of Cabo Verde (Cape Verde) is waiting for Portuguese group Caixa Geral de Depósitos (CGD) to apply for authorisation to sell its stake in one of the two banks it controls in the archipelago, the governor of the central bank said on Monday in Praia.

CGD is present in Cabo Verde through Banco Comercial do Atlântico, the market leader in the archipelago, with a 52.5% stake, and Banco Interatlântico, where it controls 70% of the capital stock.

The chief executive of the Portuguese state financial group confirmed at the end of July CGD planned to dispose of one of the stakes, to reduce costs in the Cabo Verde archipelago by focusing on a single bank.

The Portuguese Ministry of Finance had announced in Lisbon that CGD would have to reduce its presence in Cabo Verde and Mozambique by the end of 2020, under a review of the institution’s 2017/2020 Strategic Plan authorised by the European Commission.

João Serra, quoted by the Inforpress news agency, said that in a free market and in a democratic country such as Cabo Verde, shareholders are free to do what they want within the existing legal framework, but stressed that the central bank, as the regulator of the Cape Verdean financial system, has the final say. (macauhub)