LISBON, June 20 (Xinhua) -- Portugal and Cape Verde on Tuesday signed a deal to create a 12-million-euro (13.08 million U.S. dollars) Environmental Climate Fund, using the African country's debt to the Portuguese state.
According to the bilateral memorandum of understanding inked by the two countries, the Portuguese government will "contribute to the consolidation of Cape Verde's sustainable development process, supporting strategic investments that promote the fight against climate change in that country."
Portuguese Prime Minister Antonio Costa said in a joint statement with his Cape Verdean counterpart Ulisses Correia e Silva that the fund could grow.
"The debt that would be paid by Cape Verde until 2025 will be integrated into an environmental and climate fund so that the Cape Verdean state can support financing and invest in the country's climate transition," said Costa.
In 2025, an assessment of the progress of the operation will be made, and a decision taken as to whether the entirety of Cape Verde's debt will be converted into the climate fund. (1 euro = 1.09 U.S. dollars) ■