The Bank of Cape Verde has extended its Emergency Assistance Programme (PAE), a subsidised central bank funding line intended to support bank lending on special terms to climate-affected borrowers, to cover families, companies, other legal persons and municipalities in Santiago Norte impacted by the 13 November 2025 torrential rains. The PAE was created in August 2025 following storm Erin, which struck Cape Verde on 11 August 2025 and particularly affected São Vicente, Santo Antão and São Nicolau. It provides participating institutions with access to central bank financing priced at 0.75%, up to CVE 10 billion, with maturities of up to five years, implemented through participating institutions subscribing to central bank financial instruments. The central bank also flagged climate-related events as a growing source of risk for financial institutions’ balance sheets and for the conduct of monetary policy, and indicated it is moving to integrate climate risks into its financial stability and monetary policy work.
Bank of Cape Verde 2025-11-24
Bank of Cape Verde extends 0.75% CVE 10 billion emergency credit assistance programme to Santiago Norte after torrential rains
The Bank of Cape Verde extended its Emergency Assistance Programme (PAE) to support lending to families, companies, legal entities, and municipalities in Santiago Norte affected by recent torrential rains. Established in August 2025 after storm Erin, the PAE offers central bank financing at 0.75% up to CVE 10 billion with maturities of up to five years. The central bank highlighted climate-related events as increasing risks to financial stability and monetary policy.