Cabo Verde has no debt to the International Monetary Fund

16 April 2020

Cabo Verde was left out of the debt servicing pardon that the International Monetary Fund granted to 25 countries because it has never owed anything to that international organisation, said the Deputy Prime Minister and Minister of Finance, Olavo Correia in Praia on Tuesday.

Speaking to Rádio de Cabo Verde, Olavo Correia explained that the country, in addition to being part of the group of middle-income countries, has never had any serious problem with its balance of payments that would justify seeking financial assistance from the International Monetary Fund (IMF).

The minister said that Cabo Verde has debts to other international partners and is in line with the strategy of finance ministers from other African countries to seek a moratorium in relation to external debt in the short term, for 2020.

The IMF announced on Monday, 12 April, a six-month pardon on debt servicing by 25 of the poorest countries, including Guinea-Bissau, Mozambique and São Tomé and Principe, to facilitate the response of these countries the impact of the Covid-19 pandemic.

The 25 States are Afghanistan, Benin, Burkina Faso, Chad, Comoros, the Gambia, Guinea Conakry, Guinea Bissau, Haiti, Solomon Islands, Liberia, Madagascar, Malawi, Mali, Mozambique, Nepal, Niger, Central African Republic, the Democratic Republic of Congo, Rwanda, São Tomé and Príncipe, Sierra Leone, Tajikistan and Togo. (macauhub)