The Cape Verdean government has granted a €3.63 million guarantee to the São Vicente City Council for the rehabilitation of areas affected by the August 2025 storm, which caused nine deaths on the island.
“The Directorate-General of the Treasury is authorized to grant a state guarantee to the Municipality of São Vicente for bank financing in the amount of €3.63 million, to be contracted with Banco Cabo-verdiano de Negócios,” according to a resolution approved by the Council of Ministers and published in the Official Gazette on Monday (19).
The Executive recalled that, in the early hours of August 11, 2025, the island was ravaged by a tropical wave that caused “significant damage,” including heavy rains, flooding, landslides, destruction of public roads and homes, and nine deaths.
In response to the damage, the City Council decided to invest in the affected areas with the aim of rebuilding São Vicente.
To this end, it took out a bank loan and requested a guarantee as collateral for the financial operation.
The government justified granting the guarantee, stating that, considering the importance of these investments in the rehabilitation of the island’s infrastructure and their impact on the local and national economy, the state recognizes the interest in supporting the São Vicente City Council in mobilizing the necessary resources.
The financing will have a total term of 222 months, including a six-month grace period, under the terms approved by the lending bank.
Source: Lusa
