Bad credit in Cabo Verde exceeds US$150 million

23 September 2019

Credit overdue for more than 90 days in Cabo Verde exceeds 15 billion escudos (US$150 million) and represents about 12% of total credit granted, the Deputy Prime Minister and Finance Minister, Olavo Correia said on Friday in Praia.

“Twelve percent is a very high figure when making an international comparison, and while banks have a solid financial situation and liquidity, we cannot aspire to be a developed country with so many defaults,” said the minister.

Olavo Correia, who was speaking at a meeting to disclose the preliminary draft of a bill for the seizure of property, said that one of the fundamental principles of solid development is to have a society that meets deadlines, obligations and contracts.

“When we talk about facilitating access to credit, we mean removing unnecessary barriers, not introducing excessive facilities,” said Correia, adding that anyone who does not comply should not have access to finance from either the banks, the government or the capital markets.

The government, he said, is working to come up with a solution to prevent bad credit from having “big implications” for the banking system, according to the Inforpress news agency. (Macauhub)