The Bank of Cape Verde (BCV) announced this Wednesday (11) the creation of an emergency assistance program aimed at families, businesses, and other entities affected by the storm that caused nine deaths in São Vicente and damage in two other municipalities.
“BCV has decided to create an Emergency Assistance Program (EAP) with the objective of encouraging the granting of credit, under special conditions, to families, businesses, and other entities particularly affected by the storm that hit the country on August 11, especially on the islands of São Vicente, Porto Novo (Santo Antão), and São Nicolau,” the bank said in a statement.
The program provides for the availability of a financing line at reduced interest rates, up to 90.7 million euros, with maturities of up to five years. The operation will be carried out through the subscription, by participating institutions, of central bank financial instruments.
Eligible participants include banks operating in the Intervention Operations Market (MOI) and microfinance institutions, which may join directly or indirectly through banks, provided they meet the requirements set by BCV. This temporary measure is intended to encourage the granting of credit to families, businesses, and other affected entities, including those indirectly impacted due to business relations with entrepreneurs or companies based in the devastated islands and municipalities.
“Institutions that join the program are required to use the funds received exclusively for the purpose defined in the program,” the statement stressed.
The regulation defining the conditions for participation in the EAP will be published shortly.
The floods of August 11 inundated neighborhoods, destroyed roads, bridges, and commercial establishments, disrupted power supply, and caused nine deaths, with two people still missing.
The government declared a six-month state of calamity in São Vicente, Santo Antão, and the two municipalities of São Nicolau, approving a response plan that includes emergency support for families and economic activities through subsidized credit lines and non-repayable grants, funded by the National Emergency Fund and the Sovereign Emergency Fund.
Source: Lusa
