Resumo I9A

The bill that created the Deposit Guarantee Fund was unanimously passed in Parliament on October 26, 2016. Initiated by Banco de Cabo Verde as part of the Financial System Basic Law, the bill was presented by the Government.

The Deposit Guarantee Fund aims to protect depositors within the banking system up to the limits established by law, contribute to maintaining financial system stability, and mitigate the effects of a potential banking crisis.

The purpose of the Fund is to reimburse guaranteed deposits made at participating institutions where: an intervention was decreed or a participating institution was extrajudicially liquidated and BCV has recognized that a participating institution is bankrupt.

As for the guarantee limits, the Fund guarantees the reimbursement, by bank, of the overall cash balances of each deposit holder, up to the limit of CVE 1,000,000. The Fund is autonomous in terms of assets and works within Banco de Cabo Verde, which provides the technical and administrative services essential to its operation.