Latest update October 27th, 2026 10:25 AM
IMF praises govt’s prudent borrowing strategy
…as Guyana’s debt climbs to US$10.3B
(Kaieteur News) – The International Monetary Fund (IMF) has endorsed the Government of Guyana’s borrowing strategy, concluding that the country’s debt remains sustainable. This revelation comes even as the country’s total public debt is expected to climb to US$10.3 billion by the end of 2026.
In its concluding statement following the 2026 Article IV Consultation, the IMF said government’s “prudent borrowing strategy continues to support debt sustainability, with the risk of debt distress assessed as low, as in the previous assessment.”
IMF also commended government for its sustained prudent fiscal policies, even as a fiscal deficit is expected to widen somewhat in 2026 due to social transfers and electricity subsidies but improve in 2027.
Guyana’s national debt from 2019 to end of 2026 (projected)
The global organisation, however, advised that should oil prices remain elevated for an extended period, the government should increase the share of oil revenues being saved. It said, “If oil prices remain persistently high, a larger share of additional oil revenue should be saved, in line with the economy’s absorptive capacity. Public spending should continue to prioritise productivity-enhancing projects and support the most vulnerable. Policy efforts should remain focused on strengthening monitoring of spending outcomes and oversight of public enterprises.”
Earlier this year, Senior Minister with responsibility for Finance, Dr. Ashni Singh, announced that Guyana’s total Public and Publicly Guaranteed (PPG) debt rose sharply to US$7.7 billion at the end of 2025, up from US$5.993 billion a year earlier.
This publication had reported that government’s borrowing this year will move Guyana’s debt burden from US$7.7 billion at the end of 2025 to US$10.3 billion this year.
Presenting the PPP/C Government’s $1.5 trillion national budget for 2026, Dr. Singh said the increase to US$7.7 billion by the end of 2025 reflects continued fiscal discipline alongside the government’s aggressive development drive. “Our government continues to balance the financing of our transformation agenda with the preservation of fiscal and debt sustainability,” Singh told the National Assembly. “We remain committed to the responsible and transparent management of public debt within prudent cost and risk parameters.”
He noted that the PPP government has demonstrated a well-established track record since it resumed office in 2020. He reported that total PPG debt stood at US$7.7 billion at the end of 2025, reflecting positive net inflows from both external and domestic financing sources. Domestic PPG debt accounted for 62.3% of the total, amounting to US$4.8 billion, while external PPG debt comprised 37.7%, or US$2.9 billion.
According to Minister Singh, multilateral creditors held the largest share of external PPG debt at 64%, followed by bilateral creditors at 30.1% and private creditors at 5.9%. On the domestic side, treasury bills (T-Bills) dominated the debt profile, accounting for 82.5%, an increase of 6.2% from a year earlier. Debentures accounted for the remaining 17.5%.
Moreover, the finance minister stated that Guyana’s debt sustainability indicators have continued to improve. He outlined that since 2020, the ratio of total PPG debt to gross domestic product (GDP) declined from 47.4% to 28.6% at the end of 2025.
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