AG 2023 Report: Guyana able to negotiate improved terms on int’l loans

– several loans amended; terms improved & funding increased

As a result of the People’s Progressive Party/Civic (PPP/C) Administration’s track record in managing its international debt portfolio, several loans that Guyana has with either multilateral institutions or with other countries have, in some way or the other, been amended to Guyana’s benefit.
The state of Guyana’s public debt has been highlighted in the Auditor General’s Report for 2023, which recorded that total Public Debt at the end of 2023, which stood at $976.2 billion (US$4.682 billion), was 1.63 times current revenue. The proportion of debt to current revenue was 1.87 at the end of 2022 and 2.59 at the end of 2021.
Equally important is the relationship that Guyana has been able to cultivate with its international lenders. The Report has said that during the period under review, it was noted that the Government of Guyana had entered into 11 new loan agreements, totalling $222.4 billion. Eight of those loan agreements were laid in the National Assembly during 2023, while three were laid in 2024. The Government was able to amend the agreements for three loans contracted prior to 2023, and those were also laid in the National Assembly.
“Notably, the Inter-American Development Bank (IDB) provided four key loans: US$97 million for healthcare network strengthening; US$8 million for enhancing national quality infrastructure; US$100 million for climate-resilient road infrastructure, and US$160 million for a healthcare investment project,” the Report has said.
“The Bank of China issued a loan of 1.38 billion yuan for the East Coast Demerara Road Project, valued at $40.7 billion,” the Report added, also noting that additional loans came from sources that included Global Affairs Canada’s provision of CAD$120 million to support Guyana’s budget, and Islamic Development Bank (IsDB) US$200 million allocation for the Soesdyke-Linden Highway project.
“Additionally, the Saudi Fund for Development provided loans for housing infrastructure (375 million riyals) and the Wismar Bridge project (187.5 million riyals). In 2023, the Government of Guyana also amended three existing loan agreements to further strengthen its development projects.”
Guyana also received additional funding from the IDB, which provided US$8 million for the National Quality Infrastructure for Economic Diversification and Trade Promotion programme. This loan was formally laid in Parliament on July 20, 2023.
“The Islamic Development Bank amended its terms for the Small Hydro Project, increasing the loan by US$14.63 million, equating to $3.05 billion, also laid on July 20, 2023. Lastly, the Bank of China amended its agreement for the New Demerara River Bridge Project, adding EUR 160.85 million (approximately $37 billion) with this amendment laid in May 2024. These amendments aim to enhance infrastructure and energy resilience across the country,” the Report further highlighted.
“An important point of note is that the Auditor General’s Report states that the total Public Debt at the end of 2023 was 1.63 times current revenue, compared with a factor of 1.87 at the end of 2022 and 2.59 at the end of 2021. This simply means that the debt servicing has not only been prudently managed, but it is becoming more manageable relative to the nation’s earnings.”