PPP/C took over US$180M in loans in last six weeks

Dec 13, 2020 News

– Finance Minister says Govt. financing critical projects

By Kemol King

Minister with responsibility for Finance, Dr. Ashni Singh

Kaieteur News – The People’s Progressive Party Civic (PPP/C) government, in just six weeks, has taken in over US$180 million in loans from development banks, to combat COVID-19 and to finance infrastructural projects.
Finance Minister, Dr. Ashni Singh, told Kaieteur News yesterday that these loans are for critical projects linked to Guyana’s development, and that the government is working to ensure that there is responsible fiscal management.
The Inter-American Development Bank (IDB) approved a US$22 million loan, which it announced on November 9, under its Contingent Credit Facility for Natural Disaster and Public Health Emergencies. The bank said that the expenditures are necessary to contain transmission of COVID-19 and mitigate further health and economic consequences.
The IDB, on Friday last, then approved another COVID-19 loan for Guyana, to the tune of US$30.4 million. This, it said, will contribute to providing financial support for vulnerable persons hit by the crisis, and mitigate the fallout of the crisis on the education sector.
The World Bank also approved a loan for Guyana, in the sum of US$7.5 million. It said that the funds would strengthen laboratory capacity, support screening and surveillance, improve contact tracing, and equip healthcare facilities for more effective treatment and care of COVID-19 patients.
As for the Caribbean Development Bank (CDB), it has decided to loan Guyana US$112 million to help fund a US$190 million project, for the upgrading of 121 kilometers of road from Linden to Mabura Hill. The Bank announced this loan on Friday. On the same day, the Finance Minister said through the Department of Public Information (DPI) that the CDB has also approved a loan of US$11M for the development of a Tourism and Hospitality Institute in Guyana.
These projects alone amount to US$182.9 million, a significant sum across just five loans in six weeks.
Asked whether this sum is excessive, the Finance Minister said that it is pertinent to note that the development partners are just now beginning to re-engage with the country after a long period of political uncertainty.
This period began with the No-Confidence Motion of December 21, 2018 and culminated in a five-month elections saga characterized by electoral fraud.
In addition to that consideration, the Senior Minister said that a number of the projects had been on hold for quite some time after being conceptualized either under a previous PPP/C administration or the immediate former David Granger government.
The Tourism Institute, for instance, is the brainchild of the Donald Ramotar administration, according to Dr. Singh.
Activist Ramon Gaskin had just recently criticized the government for racking up significant debts.
“The children of this country will be burdened by this [debt] for years to come,” Gaskin had said.
Minister Singh said that the government, in taking these loans, saw the need for the execution of extremely important developmental projects which are “absolutely critical” for the infrastructure of the country, and for improving the wellbeing of Guyanese people.
He pointed to the PPP/C’s progress in reducing debt under previous administrations.
He underscored that that these development banks are known to lend on favourable terms; that government’s engagement with them reflects its commitment to borrow responsibly.