Govt. signs US$23.3M loan agreement with Indian EXIM Bank for two GDF aircraft

Mar 16, 2024 News

Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh (seated left) signs the loan agreement with Indian EXIM Bank Deputy General Manager-Line of Credit Group, Sanjay Lamba as other officials watch on.

Kaieteur News – The Government of Guyana (GoG) on Friday signed a Line of Credit (LOC) Agreement, to the tune of US$23.27 million, with the Export-Import Bank of India (EXIM Bank), for the procurement of two aircraft.

Signing on behalf of the Indian EXIM Bank was its Deputy General Manager-Line of Credit Group, Sanjay Lamba, while the Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh signed for Guyana.

The agreement is the latest move by government to ramp up the capabilities of the Guyana Defence Force (GDF).

In a statement to the press, the Ministry of Finance said the agreement was conceived during President Irfaan Ali’s visit to India’s state-owned aerospace and defence company-Hindustan Aeronautics Limited, in January 2023.

Dr. Singh, while delivering remarks noted government’s strong appreciation of India’s unwavering support to Guyana, and alluded to the two countries’ long-standing relationship grounded in history, people, and culture, and in more recent times, economic and commercial cooperation.

The Minister also recognised the EXIM Bank’s instrumental role in facilitating the presence of Indian companies in Guyana, thereby allowing for the expansion of productive capacity in various sectors of the country. To this end he said, “We want to see more Indian companies doing business in Guyana, we are open to companies from around the world, including of course India, and India is amongst the economies that are at the cutting edge of technology, and we want to receive the benefit of that cutting edge technology.”

In reiterating Government’s commitment to bolstering the country’s security sector, Minister Singh explained that the Government is investing heavily in strengthening the capabilities of the GDF, in particular, in some of its specialised wings, such as the Air Corps and the Coast Guard. He further said that the purchase of the two aircraft is part of the biggest ever investment in the capitalisation of the force thus far.

High Commissioner of India to Guyana, Dr. Amit Telang, during remarks, said that India attaches great importance to the relationship it shares with Guyana, and the signing of the LOC is just another means of cementing its partnership with Guyana. He was keen to note that the Agreement is the first ever defence LOC signed with the Caribbean region.

The Indian EXIM Bank’s Deputy General Manager, who is visiting for the first time, during his remarks said that working with the Government of Guyana has been very satisfactory, and he looks forward to a continued relationship between Guyana and the Bank.

Meanwhile, Chief of Staff of the GDF, Brigadier Omar Khan acknowledged the role that the Government of India has played in defence training over decades in Guyana and noted that the loan signing is in keeping with President Ali’s vision of a strengthened security sector that will help to maintain the peace and prosperity for ‘One Guyana’.

Friday’s signing of the LOC Agreement, represents the 11^th loan with the Indian EXIM Bank over the years.

Guyana and India established diplomatic relations on May 26, 1966, and continue to have a robust developmental cooperation programme aimed towards the mutual benefit of both countries.

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agreement, Aircraft, EXIM Bank, India, loan

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