Latest update September 22nd, 2026 10:30 AM
Govt’s ‘mad man approach’ to borrowing must end – Norton
…calls for strict policies on borrowing to prevent indebting future generations
(Kaieteur News) – Guyana’s Natural Resource Fund (NRF) will experience heavier inflows of oil money as ExxonMobil has recovered its investments in Guyana. The new revenue stream for the country should shape a robust economic blueprint for the country that ensures the resources are used in a manner that supports development and protects future generations from the weight of heavy borrowing.
This is according to leader of the People’s National Congress Reform (PNC/R), Aubrey Norton. During a recent media conference, he explained that there are certain circumstances that would allow borrowing, however, government’s “madman” approach is unsustainable.
Norton said, “There might be times when borrowing is more economically viable than using your own resources but this government’s approach of borrowing like if they head ain’t good makes no sense. It’s a mad man approach to development.”
PNC/R Leader, Aubrey Norton
Instead, the leader suggested a mechanism that would cap borrowing at a specific percentage of income.
“What is needed is a comprehensive policy approach which says one, we have these resources, they are available, two, what are the projects that will demand us borrowing and what percentage of our income should be used for that and what are the projects that we should be financing because it is in our interest,” Norton said.
He told reporters that government must be mindful of future generations so as to ensure that the resources currently available do not leave future generations in debt. The party leader argued that oil is not an infinite resource, underscoring the need for a careful approach to the use of revenues from the sector.
Norton cautioned, “If you have high levels of borrowing, high levels of income and you are utilising both at a fast rate and the people are not seeing development it could only mean one thing- they are doing it to continue to ensure the families, the friends, the favourites and themselves get rich at the expense of the people of Guyana and so there is need for clear policy position but we cannot support that kind of borrowing in this kind of environment.”
He further explained, “I am not going to take all the money I have and buy a vehicle. In that case it might be useful for me to look at what the bank has to offer and buy it but if it is economical for me to buy that vehicle and still progress to what I have to do because I have the resources, I will do it. So, there is need for a pragmatic approach to the question.”
Guyana’s debt by the end of 2026 is expected to jump to a staggering US$10.3 billion, a nearly six times increase since the country started oil production in 2019.
Before the first barrel of oil was pumped in 2019, Guyana was struggling to meet its yearly national debt payments of just US$1.7 billion.
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.
The Irfaan Ali-led administration has often touted the low GDP to debt service ratio, meaning that the country’s Gross Domestic Product (GDP) far outweighs the country’s annual repayment on loans. The country’s growth in GDP, while largely reflective of exports from the petroleum sector, is not the real value that the country receives from the sector.
For instance, Guyana’s total crude oil exports amounted to US$17.9 billion in 2024, but Guyana only received a meagre US$2.6 billion in revenue from the sector during the same period. Stakeholders have frequently warned that while the country is “rich on paper” in reality the nation risks slipping into a dangerous debt crisis that many oil producing states previously fell prey to.
Recently, the International Monetary Fund (IMF) endorsed the government’s borrowing strategy, concluding that its debt remains sustainable.
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