Cabo Verde Sovereign Fund will not require public funding

24 January 2019

Cabo Verde’s (Cape Verde’s) deputy prime minister and finance minister gave assurances on Wednesday that setting up of the country’s Sovereign Fund will not require public funds, according to the local press.

“We have a solution, we are putting together a financial structure that will avoid having to resort to the resources of the State to guarantee the initial allocation of the Sovereign Fund,” said Olavo Correia, adding that this solution would be presented by the government soon.

The Sovereign Fund, which will have an initial allocation of 90 million euros, is intended to finance major projects of Cape Verdean companies that have difficulty accessing bank credit, and was announced on Friday by the deputy prime minister and minister of finance. The new Fund was discussed in May 2018 with the Portuguese Minister of Finance.

Correia submitted a proposal to Mário Centeno for Portuguese state bank Caixa Geral de Depósitos (CGD) to acquire a stake in the Cabo Verde Sovereign Fund, which at the time had an expected allocation of 100 million euros.

The creation of the fund was announced by the Cape Verdean prime minister, Ulisses Correia e Silva, but details about its capitalisation and the conditions for access to the fund’s guarantees have yet to be made public. (macauhub)