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Russia cancels Guyana debts… Writes off 1984 helicopter $57M loans
Finance Minister, Dr. Ashni Singh, makes a point to Russian Ambassador to Guyana, Nikolay Smirnov (at right), yesterday. At left is an official of the Russian Embassy
Russia has cancelled almost $57M in debt owed by Guyana. Yesterday, Finance Minister, Dr. Ashni Singh, and Nikolay Smirnov, Ambassador of the Russian Federation to Guyana, exchanged official documents that concluded Guyana’s debt owed to Russia for US$277,490.24 or G$56.7M.
The cancelled debt originated from two loans contracted on October 23, 1984 and December 24, 1984 between the former Guyana National Co-operative Bank (GNCB) on behalf of the Government of Guyana and “Aviaexport”, a Russian foreign trade agency, for an amount totaling US$9,409,044.71 to purchase two military helicopters for the Guyana Defence Force (GDF).
The Russian Federation had previously provided debt relief to Guyana on December 22, 2004 by writing-off 98.32 per cent of the US$16,573,498.37 that was outstanding at that time. The current write-off covers the remaining balance.
According to the state-owned news agency, this agreement puts into effect the decision taken by the Russian Federation in December 2006 to go beyond the Paris Club Initiative and write-off 100 per cent of the debt of those countries who had reached completion point under the Enhanced Heavily Indebted Poor Countries Initiative by December 31, 2006, including Guyana.
The funds are to be used to assist Guyana in financing projects in the areas of poverty reduction, environmental protection as well as economic development.
According to the joint statement, the agreement was signed by the two Governments with a view to developing cooperation, strengthening the cordial friendship between the two countries and striving together to attain the Millennium Development Goals as stipulated in the United Nations Millennium Declaration of September 8, 2000.
Russia and Guyana have been successfully cooperating in the areas of economic and human capital investments.
In recent years, a number of Guyanese students have benefited from scholarships from the Russian Government and the Bauxite Company of Guyana Incorporated (BCGI), a subsidiary of RUSAL (Russia’s Aluminium Company), to attend universities in Russia.
In 2012, the five Guyanese students, who were sponsored by the Russian Government, returned to Guyana as specialists in the various areas, after having completed their course of study.
Another five students who were sponsored by BCGI in 2011 to study in Russia are yet to complete their studies. Upon their return to Guyana, they would be hired to work for BCGI.
“BCGI is a flagship joint venture of successful economic cooperation and is a top bauxite producer with significant payments of royalties.
“The company has plans to increase production to 1.9 million tonnes in 2013 thereby bringing new jobs for Guyanese,” the statement said.
According to the government, RUSAL, throughout its local bauxite subsidiary, has spent close to $20M on various projects as part of its social commitment to the Region 10 community.
“Guyana continues to inspire Russian artists and to attract tourists. In October 2012, a Russian artist, Maya Lobova, employed by BCGI, presented her paintings at the Castellani House and received a warm welcome and positive responses from Guyanese as well as foreign visitors.”
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