Cape Verdean gvt. guarantees $ 1 million loan to Cabo Verde Airlines
The Cape Verdean state, a 39% shareholder, has guaranteed a loan of USD 1 million to Cabo Verde Airlines (CVA). This credit will allow the company to mitigate the impacts of the pandemic. CVA is always and urgently looking for a substantial long-term loan.
Cabo Verde Airlines (CVA) can take out a loan of 100 million escudos (1,068,090 USD). In fact, on September 26, the Council of Ministers authorized the General Directorate of the Treasury to grant an amendment to guarantee this loan from the Cape Verdean national company to the bank Caixa Económica de Cabo Verde (CECV). The resolution published in the official journal Tuesday, November 3, entered into force the next day.
"The guarantee has a term of 12 (twelve) months, depending on the duration of use and the repayment period of the loan, under the conditions approved by the CECV", states the ministerial decision. According to the document signed by Prime Minister José Ulisses de Pina Correia e Silva, the state made the decision as 39% owner of the company. This “emergency bank financing” should enable CVA to cope with the economic consequences of the Covid-19 pandemic.
This sum is however insignificant, the management of the company urgently seeking a long-term loan, to guarantee its operation. At the end of the Council of Ministers of July 27, the State which has for the moment suspended its process of exiting the shareholding of the company, had nevertheless agreed to guarantee a loan of up to $ 12 million to this effect.
After suspending its operations on March 19, following the closure of Cape Verde's borders, Cabo Verde Airlines resumed its domestic flights on July 15. Its international trips were timidly resumed with the partial opening of the Cape Verdean skies on August 1 ("essential flights" only from and to Portugal). Since October 12, the country's borders have been completely open.
Cabo Verde Airlines (CVA) can take out a loan of 100 million escudos (1,068,090 USD). In fact, on September 26, the Council of Ministers authorized the General Directorate of the Treasury to grant an amendment to guarantee this loan from the Cape Verdean national company to the bank Caixa Económica de Cabo Verde (CECV). The resolution published in the official journal Tuesday, November 3, entered into force the next day.
"The guarantee has a term of 12 (twelve) months, depending on the duration of use and the repayment period of the loan, under the conditions approved by the CECV", states the ministerial decision. According to the document signed by Prime Minister José Ulisses de Pina Correia e Silva, the state made the decision as 39% owner of the company. This “emergency bank financing” should enable CVA to cope with the economic consequences of the Covid-19 pandemic.
This sum is however insignificant, the management of the company urgently seeking a long-term loan, to guarantee its operation. At the end of the Council of Ministers of July 27, the State which has for the moment suspended its process of exiting the shareholding of the company, had nevertheless agreed to guarantee a loan of up to $ 12 million to this effect.
After suspending its operations on March 19, following the closure of Cape Verde's borders, Cabo Verde Airlines resumed its domestic flights on July 15. Its international trips were timidly resumed with the partial opening of the Cape Verdean skies on August 1 ("essential flights" only from and to Portugal). Since October 12, the country's borders have been completely open.
Source: newsaero
