GUYANA – Guyana’s total debt has risen sharply, exceeding US$5 billion by mid-2024, according to the Ministry of Finance’s Mid-Year Report. As of June 2024, the country’s debt stood at US$5,063.3 million, up from US$4,508.8 million at the end of December 2023.The report highlights that Guyana’s public debt remains sustainable and is currently subject to a moderate risk of debt distress.

The government said that it has maintained a focus on securing development financing under prudent cost and risk parameters.At the end of the first half of this year, Guyana’s stock of Total Public and Publicly Guaranteed PPG debt amounted to US$5,063.3 million, reflecting positive net flows from both external and domestic creditors,” the report states.

As of the end of June 2024, external PPG debt totaled US$1,924.2 million. The ministry stated that this increase is attributed to positive net flows from multilateral creditors such as the World Bank’s International Development Association and the Caribbean Development Bank, as well as from bilateral creditors including China, Canada, India, and UK Export Finance. These funds support various social and infrastructural projects.Multilateral creditors hold the largest share of external PPG debt at 63.4%, followed by bilateral creditors at 35.1%, and private creditors at 1.5%.  Notably, the report states that the external PPG debt stock is projected to grow to US$2,832.3 million by the end of 2024, driven by expected continued inflows from both bilateral and multilateral sources.

It was disclosed that external disbursements reached US$196.8 million in the first half of 2024, a 94.6% increase from the same period in the previous year. This surge is largely due to increased funding from bilateral creditors, which amounted to US$157.9 million, reflecting a 127.5% rise compared to the first half of 2023. Key projects funded include a social protection initiative by Canada, the East Coast Demerara Road Improvement Project Phase 2, and the Regional Hospitals Project, financed by China, along with several projects funded by the India EXIM Bank.

(Kaieteur News)

Photo: Senior Minister within the Office of the President, Dr. Ashni Singh. …[+]