The Ministry of Finance has revealed that is is incapable of giving the Guyana Sugar Corporation (GuySuCo) a bailout at this time.
GuySuCo had on May 15 written caretaker president David Granger detailing its dire financial crisis, begging for a bailout.
The Finance Ministry has since informed the media of its decision on the matter.
See full response:
The Ministry of Finance notes Guysuco’s request to the Government for a bailout, and wishes to assure that it is actively seeking to assist Guysuco to access funds that are available to it, to mitigate its present challenges.
Notwithstanding however, the prevailing national circumstances, coupled with the challenges of COVID-19 and a reduced national income, render the Treasury incapable of providing a bailout to Guysuco.
In this regard, we wish to remind that a $30 Billion bond backed by NICIL’s assets and guaranteed by the Government of Guyana was secured through NICIL to retrofit and revitalise the 3 remaining sugar estates.
During the period July 2018 to February 2020, $9,720,759,568 was disbursed to Guysuco to fund its Capital and Operational Expenditure – much of which was outside the terms of the bond.
Additionally, NICIL through the SPU, sold lands that were vested to it, and garnered deposits of $2.1 billion.
The full sum was used to offset bond payments that became due in May, 2020. The balance of $1.5 billion for the lands will be paid over to NICIL when the vesting orders are signed and gazetted. It is expected that part of this sum will go towards a bond repayment which is due on July 4th, 2020, and the remainder to Guysuco. Guysuco also generates its own income.
Another disbursement is expected in the coming days; so we urge that NICIL, Guysuco and the syndicated lenders work assiduously to resolve any bottlenecks.
The Government of the Cooperative Republic of Guyana remains committed to making Guysuco a viable partner.