The Bank of Cape Verde has signed a Guarantees Protocol with Pró-Garante, Sociedade de Garantia, S.A. setting the terms, conditions and requirements for guarantees to support central bank financing provided to microfinance institutions that join the Bank’s Emergency Assistance Program (PAE). The agreement is intended to allow microfinance institutions, for the first time and subject to specified requirements, to access a Bank of Cape Verde emergency programme. Under the exceptional PAE framework, disbursements require guarantees with a high degree of security, liquidity and quality, and the Bank has regulated the acceptance of collateral provided via guarantee companies in which the State of Cabo Verde is a majority shareholder and/or guarantee mechanisms held by the State. The PAE was created in August 2025 to stimulate credit on special terms to households, companies and other entities affected by Storm Erin, providing a funding line at 0.75 percent interest up to CVE 10 billion with maturity up to five years, delivered through participating institutions’ subscription to central bank financial instruments; it was later extended to cover affected households, firms, other legal persons and municipalities in Santiago Norte following torrential rains on 13 November 2025.
Bank of Cape Verde 2026-02-17
Bank of Cape Verde signs guarantee protocol enabling microfinance institutions to access its Emergency Assistance Program funding
The Bank of Cape Verde signed a Guarantees Protocol with Pró-Garante, Sociedade de Garantia, S.A. to facilitate microfinance institutions' access to the Emergency Assistance Program (PAE). This agreement allows access to central bank financing under the PAE, established to provide credit on special terms to entities affected by Storm Erin and subsequent rains. The PAE offers funding at 0.75% interest up to CVE 10 billion, with a maturity of up to five years.