The Bank of Cape Verde has decided to establish an Emergency Assistance Programme (PAE) to stimulate lending on special terms to households, companies and other entities affected by Storm Erin, which hit the country on 11 August 2025, particularly the islands of São Vicente, Santo Antão and São Nicolau. The programme provides a funding line at reduced interest rates of up to CVE 10 billion with maturities of up to five years, implemented through participating institutions’ subscription to the central bank’s financial instruments. Eligible institutions include banks participating in the Intervention Operations Market (MOI) and microfinance institutions, which may participate directly or indirectly through banks depending on compliance with central bank requirements. Disbursements must be used for the programme’s defined purpose, including lending to entities indirectly affected through commercial relationships with businesses based in the affected islands and municipalities. A regulation setting out the PAE participation conditions is to be published shortly.
Bank of Cape Verde 2025-09-11
Bank of Cape Verde creates a CVE 10 billion Emergency Assistance Programme to support storm Erin-affected borrowers
The Bank of Cape Verde is establishing an Emergency Assistance Programme to provide up to CVE 10 billion in funding at reduced interest rates to entities affected by Storm Erin. The programme targets households, companies, and other entities, with funding available through banks and microfinance institutions participating in the Intervention Operations Market. A regulation detailing participation conditions will be published soon.