Cape Verde's state plans to repay 2.9bn CVE (€26.6mn) more to foreign lenders in 2027 than it receives from them, the fiscal council CFP said in its analysis of the 2027 budget proposal. External loan disbursements fall 22.9% to 9.3bn CVE (€84.0mn). Meanwhile, domestic borrowing reaches 18.8bn CVE (€170mn). Domestic debt would rise 3.9% to 108.8bn CVE (€987mn), the council said.
Analysis: The shift replaces cheaper foreign loans with domestic borrowing. External debt carried an average rate of 0.98% in 2025, with 73% on concessional terms. Meanwhile, the Treasury paid 3% on three-year bonds in October, a gap of about 2 points, by our calculation. Banks, which held 54.4% of domestic public debt in 2025, are the main buyers. The council urged prudence given the small local market and possible effects on credit to the private sector. The plan also counts on 1.8bn CVE (€16.3mn) from selling state holdings, against 188mn CVE (€1.7mn) this year, without naming them. Parliament's final vote on the budget is due before the end of the year.
Source: Conselho das Finanças Públicas (fiscal council), CFP analysis of the 2027 budget proposal (approved November 2, 2026), 2027; Conselho das Finanças Públicas (fiscal council), CFP analysis of the 2027 budget proposal, 2027 and 2025; Ministério das Finanças de Cabo Verde, Bolsa de Valores de Cabo Verde, 'Relatório Resultado de Leilões', auction of October 26, 2026 (OTE3,0000%OT27OUT29), published by the finance ministry, October 26, 2026; Banco de Cabo Verde, Banco de Cabo Verde, Relatório de Estabilidade Financeira 2025 (published September 25, 2026), 2025