IDB approves US$22M loan for Guyana’s COVID-19 fight

Nov 11, 2020 News

Kaieteur News – The Inter-American Development Bank (IDB) has approved a US$22M loan to help strengthen Guyana’s COVID-19 response.
The IDB loan, which falls under the Contingent Credit Facility for Natural Disaster and Public Health Emergencies is to finance public expenditures necessary to contain transmission of the disease and mitigate further health and economic consequences.
According to a release issued by the bank, in light of the ongoing global health crisis and its impact, “the government is facing the challenges of strengthening the country’s health system, while also confronting the financial and liquidity constraints that limit its capacity to continue investing in closing the gaps and building preparedness and response capacity.”
The release states that the loan would provide an efficient financial coverage under the Contingent Credit Facility to support, in a timely manner, the implementation of Guyana’s strategic response plan to COVID-19.
“As the number of COVID-19 cases increases, it is critical to ensure that the government has the necessary funding to quickly implement all measures required to control the ongoing emergency and save people’s lives,” the IDB added.
The Bank highlighted that the loan would be used for, among other needs, the purchase of medical equipment, laboratory equipment and inputs, ambulances, and personal protective equipment for health workers, surveillance officers and border personnel.
The operation would benefit the affected population of the country that receives emergency assistance under the proposed coverage.
According to the Bank, the loan, of which US$15.4 is charged to the regular ordinary capital of the IDB, has a repayment term of 25 years, a grace period of 5.5 years and an interest rate based on the London Inter-Bank Offered Rates (LIBOR).
Lastly, IDB explained that a total of US$6.6 million is charged to concessional ordinary capital, with a repayment and grace term of 40 years and interest rate of 0.25%.
Guyana has recorded 135 deaths with over 4,500 cases since March.

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