Cabo Verde banks prepares to implement government measures to support the economy due to Covid-19

9 April 2020

The commercial banks operating in Cabo Verde agree with measures to support the economy announced by the government but had some concerns about the eligibility of firms, the purpose of the funding and the proportion of the value to be assigned to each company, reported the local press.

These concerns were expressed on Wednesday during a meeting between Prime Minister, Ulisses Correia e Silva and the Deputy Prime Minister and Minister of Finance, Olavo Correia, with the governor of the Bank of Cabo Verde, João Serra and the representatives of the commercial banks and insurance companies.

The Chief Executive of Banco Comercial do Atlântico (BCA), Francisco Costa, gave assurances that his bank was, “fully aligned” with the government’s policies and will be on the “front-line” to ensure, from next week, the implementation of the moratorium measures and the design of credit through the lines created by the Government.

The chairman of the board of directors of Banco Cabo-verdiano de Negócios (BCN), Paulo Lima, said that these measures are “necessary” and were put in place in “record time”, and the bank’s concern is whether these measures will reach the companies that need them most and to the people who are most in need.

All the banks expect as soon as possible to sign the protocol establishing the operational framework and the strategic framework for implementation of these measures.

On Tuesday, the Bank of Cabo Verde has clarified the conditions of access to the exceptional and temporary measures for the protection of credits for families, companies, private charitable institutions, non-profit associations and other entities in the social economy.

The explanation followed the entry into force of Decree-Law no. 38/2020, of 31 March, establishing these exceptional measures and temporary protection of credits, as well as a special regime of personal guarantees by the State,  due to the Covid-19 pandemic.

Customers of credit institutions (banks) that meet the requirements set out will benefit from the exceptional and temporary measures listed in the diploma.

Those who want to benefit from this measure will, according to the BCV, have to request them from credit institutions, which will then give provide the moratorium within five working days if families, companies and other entities fit the criteria. (macauhub)