Latest update September 21st, 2026 2:51 PM
Latest News
- Three killed in Baramita clash
- Defense accuses Police of misrepresenting court testimony, Magistrate says court unfazed by media
- Mohamed alleges political hand behind review of Justice Persaud’s U.S. visa
- ‘Stop blaming ‘sanctity of contract’ for keeping 2016 oil deal – Chris Ram tells Pres. Ali
- Iran and U.S. trade threats after Houthi attacks escalate regional conflict
Guyana’s debt and the IMF
(Kaieteur News) – The International Monetary Fund has once again given Guyana’s government a glowing report card.
It says the country’s borrowing strategy is “prudent,” debt remains sustainable, and the risk of debt distress is low.
On paper, that may all be technically correct. But on the streets of Guyana, where ordinary citizens have watched the national debt explode while oil revenues gush into the treasury, those assurances are unlikely to inspire confidence.
The numbers tell a troubling story. By the end of this year, Guyana’s public debt is projected to reach US$10.3 billion. In just six years, the country’s debt has ballooned more than sixfold. This is not happening in a country struggling to survive a recession or recovering from a natural disaster. It is happening in one of the fastest-growing economies on Earth, fuelled by billions of United States dollars from offshore oil production.
That is what makes the situation so difficult for many Guyanese to reconcile.
Countries usually borrow heavily because they lack money. Guyana is borrowing heavily while sitting atop one of the world’s richest new oil discoveries. The obvious question therefore is: why?
The IMF answers by pointing to debt-to-GDP ratios. Because Guyana’s economy is expanding at a breathtaking pace, the country’s debt appears smaller relative to the size of the economy. From a purely mathematical standpoint, the figures look manageable.
But citizens do not live inside ratios.
They see billions flowing into the Natural Resource Fund while government simultaneously racks up billions more in loans. They see a budget exceeding G$1.5 trillion, record withdrawals from the oil fund, and now another US$2.6 billion in borrowing this year alone. It is not unreasonable for taxpayers to ask why an oil-rich nation must continue piling debt upon debt.
The IMF itself offered an important warning that should not be overlooked. If oil prices remain high, it said Guyana should save a greater share of its oil revenues instead of spending them all. That recommendation deserves far more attention than the praise for “prudent borrowing.”
Oil wealth does not last forever. Production can decline. Prices can crash. Global demand will eventually shift as cleaner energy sources expand. Borrowing against today’s prosperity while saving too little for tomorrow is a gamble no responsible government should take lightly.
There is another concern. Borrowing only makes sense if the projects financed generate lasting economic returns. Guyanese deserve far greater transparency on whether borrowed funds are producing value for money. Every bridge, highway, hospital, power station and housing scheme financed through debt should be subjected to rigorous public scrutiny. Citizens have every right to know whether these projects are being delivered on budget, on time and free from corruption.
The IMF may assess debt sustainability through economic models. Guyanese assess it through experience.
They remember decades when debt strangled national development. They understand that today’s loans become tomorrow’s repayments. They know that future governments and future generations will inherit these obligations long after today’s politicians have left office.
No one disputes that Guyana needs massive investment in infrastructure after decades of neglect. Roads, ports, schools, hospitals and reliable electricity require financing. But an oil-producing nation should also be asking a different question: how much borrowing is truly necessary when billions in petroleum revenues are already flowing each year?
Skepticism, therefore, is not cynicism. It is common sense.
The IMF has every right to praise the government’s borrowing strategy based on international fiscal benchmarks. But Guyanese have every right to ask why, in the greatest economic boom in the nation’s history, the national debt continues climbing at such a breathtaking pace.
Oil was supposed to free Guyana from dependence. Instead, many citizens are wondering whether it is merely financing a new era of borrowing one that future generations may yet be called upon to repay.
Share this:
Discover more from Kaieteur News
Subscribe to get the latest posts sent to your email.
Similar Articles
One thought on “Guyana’s debt and the IMF”
Website Hits
Blunt of the day
Sports
Features/Columnists
Sir. Ronald Sanders
The GHK Lall Column
Weekend Cartoon
IMF cannot say otherwise but, glowing tributes on Guyana’s borrowing $$$.
By such “tributes”, IMF hopes Guyana will continue to borrow, borrow, and
borrow until they MORTGAGED Guyanese to the IMF…with the oil quickly
being extracted instead of prolonged.
That’s how all Guyanese finally become AMERICANS.