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‘UK bets big on Guyana’ …says borrowing ceiling raised as economic boom impresses
(Kaieteur News) – High Commissioner of the United Kingdom (UK) to Guyana Jane Miller on Tuesday told the International Business Conference (IBC) that Guyana’s economic growth is what enticed the increased borrowing ceiling to £3B.
High Commissioner of the United Kingdom (UK) to Guyana Jane Miller
She made it clear that it would not have been done if it was believed that Guyana could not afford it. During a panel discussion at the conference, Miller said that, “I think many of you saw the last few days that we’ve just increased our UK export finance availability to Guyana to £3B, to huge amounts of resources.”
The High Commissioner explained that the assessment has been made on the basis of statistics on the economic status of the country, as the UK would never give such an increased ceiling to a country that could not borrow. “…so it’s purely what we think is sustainable lending…” Miller added.
On October 1 the United Kingdom increased its export credit financing limit for Guyana from £2.1 billion to £3.0 billion, a move billed by both London and Georgetown as a vote of confidence in Guyana’s accelerating economic progress. But amid the applause, commentators have here have sharply warned that Guyana must tread carefully. Failure to do so, they say, risks plunging the country into a debt trap, especially given the volatility of oil prices and the nation’s already heavy external and domestic obligations.
Kaieteur News reported last week that the announcement, made by UK Export Finance (UKEF) followed a meeting with President Irfaan Ali and his finance team. In a press release back then the British High Commission in Guyana said that the larger ceiling “reflects the UK’s confidence in Guyana’s economic trajectory and fiscal sustainability.” and marks a further deepening of bilateral relations between the two nations.”
For his part, President Ali, in outlining his priorities for UKEF support, said the announcement comes at a “pivotal moment” as Guyana ramps up infrastructure development and strengthens its position as a major investment destination. “The British High Commission looks forward to supporting sustainable growth and shared prosperity through this collaboration between the UK and Guyana,” the statement concluded.
Guyana’s total Public and Publicly Guaranteed (PPG) debt stood at US$5.993 billion at the end of 2024, up from about US$4.5 billion a year earlier. External PPG debt loans from multilateral, bilateral, and other foreign creditors was roughly US$2.2 billion, while domestic PPG debt reached approximately US$3.7 billion. Debt servicing costs also climbed to US$196.1 million in 2024, up from US$177.5 million the year before. Of that, US$124.9 million went to external debt service and US$71.2 million to domestic obligations. Government officials, however, frequently point to Guyana’s declining debt-to-GDP ratio, down from 47.4% in 2020 to 24.3% in 2024, as evidence that debt levels remain within prudent limits and that the country has room to borrow for strategic projects.
Chartered Accountant Christopher Ram said the UK’s move “may appear as a gesture of confidence” but raises deeper questions about fiscal prudence, dependency, and geopolitical influence. Ram pointed out that Britain has long sought to cash in on Guyana’s oil wealth, recalling documentation in Raphael Trotman’s book about the British High Commissioner’s lobbying for TULLOW, a UK oil company that failed in its Guyana ventures. “What the British are doing is copying the Chinese model, give their people the contracts, and they’ll provide the financing. The unspoken message: We know you have oil; our debt is therefore safe,” Ram observed.
He added that Brexit has pushed the UK to seek new trade footholds, especially in resource-rich regions like the Caribbean. “Foreign policy is inseparably tied to trade policy,” Ram said. “They lost access to a massive market after Brexit and have been seeking alternatives ever since.”
Ram warned that while the higher ceiling gives Guyana access to faster financing, the Government’s lack of a clear borrowing policy and reliance on a “misleading” debt-to-GDP ratio are troubling. “A significant portion of GDP around 60% does not belong to Guyana, while any debt incurred certainly does,” he said. “We are using oil as a reason for increasing our debt, both in absolute and relative terms. There is no long-term economic planning.”
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