Government of Cabo Verde acquires stake in Caixa Económica due “uncertainty of Spanish businessman”

10 July 2019

The uncertainty of Spanish businessman Enrique Bañuelos de Castro forced the Cape Verdean government to acquire a 27.44% stake held by the Geocapital company in the Caixa Economica de Cabo Verde (CECV) bank, the finance minister said on Tuesday in Praia.

Olavo Correia, who is also deputy prime minister, said that given the uncertainty of the businessman whose purchase proposal had been approved by the Bank of Cabo Verde, the government had to move “to ensure banking stability.”

During the signing of the share purchase agreement, the minister, on the grounds that he was “preserving the State”, said that the acquisition is aimed at avoiding shareholder instability in Caixa Economica de Cabo Verde as a result of the Macau-based company moving out.

Olavo Correia, quoted by the Inforpress news agency, declined to talk about International Holding Cabo Verde, the company owned by the Spanish businessman, whose proposal to buy the shares had been approved by the central bank, and merely said that the government of Cabo Verde now has increased responsibility for the CECV as a national benchmark bank.

The chief executive of Geocapital, Diogo Lacerda Macedo, said that ten years in the CECV was, “a long time for an investment,” and this was one of the reasons for leaving, as well as the fact that the Cabo Verde State has a much more significant stake in the Caixa than it had when Geocapital went in. (Macauhub)