Latest update March 25th, 2025 7:08 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Loans taken in last two weeks more than oil money received for this year

Jun 11, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – In a startling revelation, the People’s Progressive Party Civic (PPP/C) administration, led by President Dr. Mohamed Irfaan Ali, has amassed a significant debt of US$500M in just a few days. This amount surpasses the total oil revenues received by Guyana since the beginning of 2023.

Since the start of the year, Guyana has received US$360M in oil-related income. This figure comprises two royalty payments totalling US$111M and the sale of three profit oil lifts generating US$249M. However, recent reports from the Department of Public Information expose the government’s rapid accumulation of debt.

On May 29, the government announced securing a loan of US$350 million from Qatar. This loan is earmarked for the extension of the Schoonord to Crane four-lane highway to Parika in Region Three. President Ali made this announcement during an engagement with residents of the Malgre Tout/Meer-Zorgen area.

On June 6, in the presence of President Ali, the Minister of Finance, Dr. Ashni Singh, signed two loan agreements worth US$150 million with the Saudi Fund for Development (SFD). The loans are intended to fund the “Infrastructural Development Works for the Housing Sector Project” and the “Construction of Wismar Bridge Project.”

Threatening to add to the mounting debt, Guyana has applied for a loan of approximately US$660 million from the United States Export-Import Bank to finance the Gas-to-Energy project. If approved, this would bring the total debt with borrowings from just three countries to nearly US$1.16 billion, spanning four projects.

Despite the substantial increase in debt, Vice President Dr. Bharrat Jagdeo defends the PPP/C administration’s borrowing spree. He argues that given the oil boom’s impact on the economy, it is acceptable for Guyana to take on such debt. Jagdeo recently stated that Guyana’s debt-to-GDP ratio remains low by global standards, outperforming many developed countries in Europe and North America.

While the PPP/C administration and its supporters emphasize the positive effects of borrowing on economic expansion, the rate at which these loans have been acquired and their magnitudes necessitate careful scrutiny to ensure responsible financial management.

Finance Minister, Dr. Ashni Singh, has said Guyana continues to enjoy strong debt sustainability fundamentals “even as we expand investments in public infrastructure, social services, and other initiatives geared at ensuring improved standards of living for all Guyanese.”

In January, the Minister had said, “This delicate balancing act hinges on our time-honoured debt management strategy of contracting development financing and meeting debt service obligations at the lowest cost, within prudent risk parameters.”

Similar Articles

The Glenn Lall Show|| March, 17th, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Groups, schedule announced for One Guyana 3×3 Quest

Groups, schedule announced for One Guyana 3×3 Quest

Mar 25, 2025

Kaieteur Sports- With just 11 days to go before Guyana welcomes 16 nations for the largest 3×3 basketball event ever hosted in the English-speaking Caribbean, excitement is building. The Guyana...
Read More
2025 Republic Bank Caribbean Premier League Fixtures confirmed

2025 Republic Bank Caribbean Premier League...

Mar 25, 2025

Virtual Meeting of Caribbean Boxing Promoters held, Guyana among six countries with interest

Virtual Meeting of Caribbean Boxing Promoters...

Mar 25, 2025

GBA AirBadminton Tournament spikes off with historic showing at St. Cuthbert’s Mission 

GBA AirBadminton Tournament spikes off with...

Mar 25, 2025

Briton John sets sights on another sweep with second leg win

Briton John sets sights on another sweep with...

Mar 25, 2025

Waramuri stuns Vreed-en-Hoop 7-1, as Bush Lot topple Ann’s Grove

Waramuri stuns Vreed-en-Hoop 7-1, as Bush Lot...

Mar 24, 2025

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]