Guyana loan portfolio to double this year

Jan 28, 2022 News

Kaieteur News – Minister with responsibility for Finance in the Office of the President, Dr. Ashni Singh, on Wednesday presented to the National Assembly the estimates for this year at $552.9B inclusive of loans—a loan portfolio that is projected to double this year.

Minister with responsibility for Finance in the Office of the President, Dr. Ashni Singh,

According to the “Estimates”, Guyana’s loans and grant stock portfolio is expected to be some $37B this year, up from $17B last year. The loan aspect of this portfolio however, is expected to double moving from $13.6B last year to $26.8B this year. The information is documented in the Estimates’ table, documenting specific sources of financing of Capital Expenditure for loans and grants from countries and other International Financial Institutions such as the World Bank and the Inter-American Development Bank (IDB).

According to the information presented, Guyana’s highest loan stock stands and will remain; the IDB projected this year to be some $11.2B, up from $9.6B last year. India is listed as the source of the next highest source of financing expected to be some $4.2B this year, up from a mere $400M last year. Loans from China are also expected to skyrocket this year moving from 779.6M last year to $1.2B this year. Grants from institutions such as the European Union (EU), Japan, the World Bank, the Caribbean Development Bank and China is expected to account for some $10.2B of the $37B that will account for financing in the 2022 Budget with funds coming from external sources through loans and grants.

Dr. Singh in his presentation, in speaking to his administration debt management track record had said, “…over the last year, our Government has continued its well-established track record of prudent public debt management, despite global and domestic shocks which constrained economic activity.” These, he said, “affected government revenue, and necessitated increased government spending to curb the social and economic ramifications.” According to Dr. Singh, “in executing Guyana’s public debt management functions, we have stuck, steadfastly, to the tried and tested strategy of contracting development financing in a manner conducive to both cost minimisation and risk mitigation.”

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