The government of Cabo Verde (Cape Verde) will rebuy the financial compensation securities (TCMF) held by Banco Comercial do Atlântico (BCA) in the amount of approximately 6.4 billion escudos (US$66.2 million) under an agreement signed between the bank and the Ministry of Finance, according to an official statement.
TCMF are credit certificates issued by the State of Cabo Verde and include the right to receive 90% of the annual net income of the “Support for Cape Verde Stabilisation Trust Fund”, created under an economic reform programme launched in 2008 and supported by Law 70/V/98 of 17 August.
Article 19 of Law 70/98, of 17 August, establishes that the State undertakes to acquire the TCMF within a maximum period of 20 years from the date of approval of this Law, and therefore all the TCMF issued should have been repurchased by the State by 17 August, 2018.
The Government added that, considering the terms of regulatory decree No. 8/2018 of 20 December, which established the conditions for acquisition of the TCMF, and that after talks to find a mechanism to execute the reimbursement of the TCMF, it signed the repurchase agreement last Monday.
The other large holder of TCMF is Banco de Cabo Verde (BCV), with about 4 billion escudos. (macauhub)