Africa-Press – Cape verde. Aimed at facilitating access to credit for businesspeople, the Securities Guarantees Registry platform was presented today by the Prime Minister.
The platform launched today has been in preparation since February 2022 and aims to bring to the national market the ease of obtaining credit for small and micro-enterprises that make up around 95% of the country’s business fabric and will allow “entrepreneurs to register and make their movable assets available, as a guarantee of financing from credit, banking and microcredit institutions”, announced the Prime Minister, Ulisses Correia e Silva, during the presentation ceremony.
“This initiative will benefit, above all, micro and small and medium-sized companies, which make up more than 90% of the country’s business sector and which face greater difficulties in accessing credit due to the lack of availability of guarantees. It comes to benefit young entrepreneurs,” he added.
How it works?
The platform will operate exclusively online and will allow, for example, a farmer to pledge “his vegetable plantation as collateral to obtain a loan to invest in improving his production capacity; an animal breeder can pledge his cattle as collateral to invest in improving livestock production; a visual artist can pledge his paintings to set up a studio”, explained Ulisses Correia e Silva.
In this way, “a wide range of movable assets can now be subject to guarantee, namely cash, products, credit titles, shares or quotas, balances in bank accounts, vehicles, inventory of commercial establishments, as long as they are alienable under onerous at the time the guarantee is created”.
On this digital platform, credits and transactions will be validated and entrepreneurs “will be recognized or not as compliant with the loans and transactions they make”, explained in an interview with Expresso das Ilhas, in February 2022, Luís Teixeira, coordinator of the Competitiveness Unit of the Prime Minister’s Office .
This tool, national authorities believe, could have a major impact on the country’s economy, causing more credit movement, more cashflow between companies, between banks and micro-finance institutions, thus creating conditions, the government hopes, for greater economic growth.
Since the data present on the platform is public, this will allow us to know the compliance history of micro and small business owners who sign up to obtain credit. This will make it possible for entrepreneurs and credit institutions to evaluate the behavior of another entrepreneur in previous credits, always respecting the principle of data protection.
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