IMF calls for greater transparency in Cabo Verde
By the AFREEQUE newsroom, based on Expresso das Ilhas
The International Monetary Fund is asking Cabo Verde to strengthen the financial transparency of its state-owned enterprises and reduce the risks they pose to state accounts. The government forecasts 5.6% growth, 2% inflation and public debt at 87.5% of gross domestic product in 2027, according to Expresso das Ilhas.
The International Monetary Fund (IMF) is asking Cabo Verde to improve the financial transparency of its state-owned enterprises and assess measures to limit the risks they pose to state accounts, mission chief Martin Schindler said on Wednesday, according to Expresso das Ilhas. The request was made at the opening of reviews of the programmes supporting the country.
The IMF is seeking, in particular, a better understanding of the financial situation of these companies, more comprehensive publication of their information and the definition of the next steps in the reforms under way. The institution is also examining the revision of fuel subsidies and advocating targeted cash transfers to protect vulnerable households from rising energy prices, Expresso das Ilhas reports.
Secretary of State for Finance Maria José Lopes announced a forecast of 5.6% growth in 2027, inflation close to 2% and a public deficit of 1%. Public debt is expected to reach approximately 87.5% of gross domestic product, while tax revenues are expected to come to nearly 78 billion escudos, up 7.9%.
Maria José Lopes cited the economic, financial and social difficulties of ELECTRA, Praia’s public transport services and Águas de Santiago. She also said that the relationship with the IMF should strengthen institutional capacity and improve public policies, beyond monitoring accounts and disbursements, according to Expresso das Ilhas. These forecasts are in line with those presented by the government in its target of 5.6% growth in 2027.
