Monday 20 November 2017

Cabo Verde government pays arrears with the banking sector

Cabo Verde government pays arrears with the banking sector
(Macauhub 08/30/17)
Finance Minister Olavo Correia

The Cape Verdean government is working to restore confidence, especially in the country’s banking system, Finance Minister Olavo Correia said on Monday after signing a contract with the Caixa Economica de Cabo Verde bank for payment of arrears.

This contract with Caixa Económica de Cabo Verde, plus an earlier one signed with Banco Comercial do Atlântico, represents more than 3.3 billion escudos (US$35.2 million) accumulated over a decade ago and that the State owed to these two banks for interest subsidies among other things.

Caixa Económica was due to receive about 900 million escudos (US$9.6 million) from the state, according to an announcement made by the finance minister and the debt to Banco Comercial do Atlântico (BCA), of Portuguese state group Caixa Geral de Depósitos, amounted to 2.399 billion escudos (US$25.6 million).

“This is a lot of money that has remained unpaid, disrespecting contracts and institutions. And the state has to make the first move, meeting its commitments,” said the finance minister, according to whom “the way is now open for a new relationship” with the banking sector.

Correia gave assurances that the government will include a financial endowment in the State Budget so that the commitments now included in a contract are guaranteed.

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