Africa-Press – Cape verde. The Ministry of Finance (MF) clarified today that it is awaiting the formal submission of the guarantee request by the Municipality of Porto Novo, accompanied by all the documentation required by law. This is an indispensable condition for the analysis of the process and for compliance with current legislation, and it cannot issue any guarantee without the prior approval of the credit operation by the lending bank.
In a statement, the Ministry of Finance reminds that the State can provide personal guarantees for internal or external credit operations to be carried out by municipalities, institutes, public companies, and autonomous state services.
Under this legal framework, entities interested in obtaining a state guarantee must submit a request addressed to the member of the Government responsible for the area of Finance, including all elements of the project, as well as the credit conditions already approved by the lending bank and the guarantees associated with the operation, including the state guarantee.
According to the Ministry, only after the complete delivery of these elements is it possible to proceed with the evaluation of the request.
In this context, the Ministry of Finance states that it is awaiting the submission of the duly instructed process by the Municipality of Porto Novo, thus allowing the analysis to proceed and ensuring compliance with the legal norms applicable to operations of this nature, as previously clarified.
The Government emphasizes that the issuance of a state guarantee is mandatory upon approval of the credit operation and its respective conditions by the banking institution involved, and no decision to the contrary is legally permissible.
The Executive adds that the Municipality of Porto Novo is aware that, should any doubts arise regarding the procedure, especially since this is a new process for the current administrators, it can and should contact the Ministry of Finance directly to obtain the necessary clarifications.
After the submission of the state guarantee request, accompanied by all mandatory documents stipulated in current legislation, the process will follow its normal course, and the decision will be communicated as established. In the absence of these elements, the State is legally prevented from issuing any type of endorsement.
According to Inforpress, the Porto Novo municipality complained about the delay on the part of the Government in granting the local authority the approval to proceed with the loan of 300 million escudos to respond to the challenges created by the floods following Storm Erin.
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