According to World Bank specialist Maurizia Toyo, “the benefits stemming from this loan are enormous, as they will improve the functioning of Cape Verde’s budget system, reduce international aid transaction costs and guarantee a more effective connection among different sectors.”

“The third Poverty Reduction Support Credit will improve access for the most disfavored sectors of the population to social assistance, contributing toward the general well-being of the population in a country with a small but open economy that is highly vulnerable to external shocks,” explained the World Bank official.

The operation is meant to lend continuity, according to a press release from the Ministry of Finances and Public Administration, to the “promotion of good governance - especially effectiveness and equity - through reforms in the management of public finances, in public administration, in the justice sector, in decentralization and in the development of human capital with a focus on health and education,” as well as in the “reinforcement of the effectiveness and sustainability of the social welfare system.”

In line with the approach of the previous two Poverty Reduction Support Credits, this third operation is being elaborated in coordination with other budget aid partners, in accordance with the Memorandum of Understanding signed by the government.

This third disbursement is part of a wider Budget Aid Group program that includes Cape Verde’s two initial partners, the Netherlands and the European Union, as well as the African Development Bank, the Spanish Cooperation Agency and the Austrian Cooperation Agency.

Source a semana