Government signs institutional agreement with commercial banks to share risk in financing IMF

 

Praia, Oct 6 (Inforpress) – The Ministry of Finance signed an institutional agreement with Banco Comercial do Atlântico (BCA) and Banco Interatlântico (BI) on Thursday aimed at sharing risks in financing Microfinance Institution (IMF) in Cabo Verde.

A similar agreement had already been signed with Caixa Económica, the Banco Cabo-verdiana de Negócios (BCN), with Ecobank and Banco BAI and the   Microfinance Institutions Professionals Association of Cape Verde (APIMF-CV).

According to this agreement, the State will subsidize 50% of interest on loans so that commercial banks can make money available to MFIs in a risk shared with the State. The total amount to be subsidized is up to 100 million escudos.

The idea, according to the Minister of Finance Olavo Correia, is to support microfinance, focusing on the formalization of the economy, financial inclusion and the generation of jobs and incomes.

“All those who want to have a life project in the tourism, commerce, industry and agro-industry sectors will be able to access the financing at 50% interest subsidized by the state,” said the official.

MJB / JMV / HVF

Inforpress

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