Deputy PM considers it good news to convert part of Cape Verde's debt into Portuguese investments


The deputy prime minister of Cape Verde believes that Portugal's opening to negotiate the country's debt, with the conversion of part into investments, is "good news".

Olavo Correia, who is also acting Finance Minister, in reaction to Portugal's willingness to convert public debt, the official believes that this "is an intelligent option with benefits for all sides", he said.

The official recalled that Cape Verde is in the group of African countries and small island countries that work “on an economic-financial diplomatic strategy to put on the agenda the issue of forgiveness of external public debt – or even its reconversion into strategic long-term investment”. deadline".

He added that Cape Verde currently faces a triple challenge, which involves “controlling the pandemic, recovering the economic and social situation and ensuring that the economic recovery is effective”.

“Cape Verde needs budgetary space to continue investing, not only in the areas of social inclusion, which have to do with immediate investments, but also in sectors that are also fundamental, in the short term, such as health, sanitation, digital, qualification, human resources, water and resilience”, he said.

The Minister of Foreign Affairs and Defense of Cape Verde, who ended his first official visit to Lisbon on Saturday, said that he had heard from Portugal an opening to negotiate the country's debt, with the conversion of a part into investments.

“We have laid the foundations for looking at the debt as a whole and at the conditions of our debt. Not only in terms of debt forgiveness, which is on the order of the day with international organizations and in relations between countries, but also in the conversion of debt into important investments, to face this post-covid period ”, he said on Sunday, in an interview with Lusa, in Lisbon, the head of Cape Verdean diplomacy.

Thus, it was decided that the Portuguese and Cape Verdean Ministries of Finance will now study and present, “soon”, a proposal to convert part of the African country's debt to the Portuguese State and banks, in investments with the participation of companies. portuguese.

Cape Verde was already defending a “reconversion” of the debt of 600 million euros to Portugal in “strategic investments” in the archipelago, under “conditions” that were “in the interest” of both countries.

“On the part of the Portuguese government, we received the greatest opening for our finance ministries to analyze the Cape Verdean debt and make proposals on how a good part of this debt is converted into fund investments, which are of interest, and also with the participation of companies Portuguese companies, and Portuguese services”, he added.

For the head of Cape Verde's diplomacy, the possibility of Portuguese companies participating in fund investments in his country will be “also important for the relaunch of the economy in the creditor country itself, which is Portugal”.

Among the investments that can be made in this plan, Rui Figueiredo Soares pointed out as an example some in the area of ​​health, such as a new hospital in the Cape Verdean capital, the city of Praia, as well as others in the blue economy and digital economy sectors.


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