The International Monetary Fund (IMF) is following with “great interest” the mechanism for converting debt into climate financing, developed between Cabo Verde and Portugal, said the director of the organization’s African Department, Abebe Aemro Selassie. The responsible hopes that, in practice, it will translate into benefits for the country.

Abebe Aemro Selassie, who was speaking at a briefing on the IMF’s economic prospects for Sub-Saharan Africa, believes that the agreement between the two countries has the potential to help Cabo Verde access funds to respond to the challenges of climate change. “The key will be in the way it is designed and, in particular, ensuring that the new financing is on terms that will truly benefit Cabo Verde and not involve additional expenses, which would leave the country in a position where it may not be able to benefit so much from it.”

Source: Jornal Expresso das Ilhas