Cabo Verde Airlines secures €4mn gov't-backed loan

Cabo Verde Airlines to be privatised - IMF

The Cabo Verde government remains committed to completing the privatisation of Cabo Verde Airlines (VR, Sal Amilcar Cabral Int'l) by selling its remaining 39% stake in the airline through the dispersion of shares on the stock exchange.

This is according to a news release by the International Monetary Fund (IMF), following its third review of Cabo Verde under the IMF’s Policy Coordination Instrument (PCI) technical assistance programme.

This would see the government off-load the burden of bankrolling the loss-making airline, which has cost Cabo Verde EUR20.6 million (USD24.4 million) through five state-guaranteed loans granted to the airline since November 2020.

It also comes as legislative and presidential elections are scheduled for April and October 2021, respectively. A new five-year economic strategy is also to be prepared later this year based on a recently completed long-term development plan, termed Cabo Verde Ambition 2030, that will be presented for parliament’s endorsement this year.

The government currently retains 39% of the airline after it sold 51% to Loftleidir Cabo Verde, a 70/30 joint venture between Icelandair...

Gov't guarantees 5th emergency loan to Cabo Verde Airlines

Cabo Verde Airlines secures emergency loan for wages

Cabo Verde Connect Services suspends flights to Portugal