Cape Verde: Government in IMF talks for financial assistance

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Cape Verde: Government in IMF talks for financial assistance

11:40 CAT | 08 May 2018

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Cape Verde’s prime minister told Lusa on Tuesday that the country was in talks with the International Monetary Fund (IMF) for a financial assistance programme for its government debt, which was the second highest in sub-Saharan Africa.

The IMF calculates that Cape Verde’s government debt is going to be 124.7% of Gross Domestic Product (GDP) this year and increase to 126.7% in 2019.

“A lot of the borrowings were taken out for infrastructure by the previous government, which made huge investments in this area but the offset is obviously the debt, but at concessional rates”, in other words below the market rates.

“Cape Verde does not have a debt service problem, but a debt stock problem, but external pressure in on the amount”, Ulisses Correia e Silva said, recalling that the country only grew 1% between 2009 e 2015 and when the economy does not grow, the debt tends to increase”, he added”.

Source: Lusa