The Cape Verdean state guarantees a new emergency loan of EUR 1 million for Cabo Verde Airlines
Despite discussions since May 2020, the Cape Verdean state and Lofleidir Cabo Verde have yet to agree on the debt restructuring and Cabo Verde Airlines (CVA) recovery plan. Grounded since last March, the parastatal company is surviving on emergency loans to pay its fixed costs, including staff salaries.
The Cape Verdean state has paid a new emergency loan from Cabo Verde Airlines (CVA). This is what Lusa revealed on Wednesday February 17th. The Portuguese news agency cites a cabinet resolution that entered into force on the same day. The loan, worth around 1 million euros, should be used to pay the arrears of wages of employees of the parastatal company. "The resumption of the company's activity is conditioned by a set of circumstances, the evolution of which will be fundamentally determined by the results obtained in the fight against the disease (Covid-19, editor's note), in the global scenario. However, the company continues to face emergency situations, in particular the payment of employee salaries, which requires an immediate solution, under penalty of harming the process in progress (the restructuring of CVA, editor's note)”, justifies the resolution. Cabo Verde Airlines' operations have been suspended since March 18, 2020, despite the resumption of domestic flights to Cape Verde on July 15, and international traffic on October 12. For good reason, the company needs a long-term loan to guarantee its functioning. Despite discussions since May, the state (39% stake) and Lofleidir Cabo Verde (51%) still disagree on how to restructure the company. Facing Parliament on December 16, Prime Minister Ulisses e Silva had promised that the process “will soon be closed”. More than two months later, it is not. The transporter is therefore forced to take out emergency loans to cover its fixed costs. The first loan guaranteed by the State took place in November (100 million escudos or 907,000 euros).
While CVA remains grounded, Cabo Verde Connect Services is going to conquer its old markets.
The Cape Verdean state has given its discharge to a new emergency loan from Cabo Verde Airlines (CVA). This is what Lusa revealed on Wednesday February 17th. The Portuguese news agency cites a cabinet resolution that entered into force on the same day. The loan, worth around 1 million euros, should be used to pay the arrears of wages of the employees of the parastatal company.
"The resumption of the company's activity is conditioned by a set of circumstances, the evolution of which will be fundamentally determined by the results obtained in the fight against the disease (Covid-19, editor's note), in the global scenario. However, the company continues to face emergency situations, in particular the payment of employee salaries, which requires an immediate solution, under penalty of harming the process in progress (the restructuring of CVA, editor's note)”, justifies the resolution.
Cabo Verde Airlines' operations have been suspended since March 18, 2020, despite the resumption of domestic flights to Cape Verde on July 15, and international traffic on October 12. For good reason, the company needs a long-term loan to guarantee its functioning.
Despite discussions since May, the state (39% stake) and Lofleidir Cabo Verde (51%) still disagree on how to restructure the company. Facing Parliament on December 16, Prime Minister Ulisses e Silva had promised that the process “will soon be closed”. More than two months later, it is not. The transporter is therefore forced to take out emergency loans to cover its fixed costs. The first loan guaranteed by the State took place in November (100 million escudos or 907,000 euros). While CVA remains grounded, Cabo Verde Connect Services is going to conquer its old markets.
