IDB hands over US$32.16M in loans to Guyana

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At the 4th IDB Caribbean IDB Governors Regional Meeting held in Freeport, Bahamas, on February 19th, Ashni Singh, Minister of Finance and the Inter-American Development Bank represented by Mr. Luis Alberto Moreno signing the two loan agreement.

[www.inewsguyana.com] – The International Development Bank on February 19 awarded US$32.16M in two separate loans to the Government of Guyana at the fourth IDB Caribbean IDB Governors Regional Meeting held in Freeport, Bahamas.

Guyana’s Finance Minister Dr Ashni Singh was present at the meeting to accept the loan on behalf of the Government of Guyana.

According to a release from the local IDB office, the loans are geared toward the Strengthening of the Environment Sector 11 initiative and the Citizen Security Strengthening Programme.

The release noted that with respect to the Strengthening of the Environment Sector, this is the second loan operation in the programme that was approved by the IDB in 2013.

The approval was made possible by full achievement of all the policy reforms agreed in 2013, as well as the maintenance of an appropriate macroeconomic policy framework.

“The programme will support the consolidation of Guyana’s Low Carbon Development Strategy (LCDS) and REDD+ (Reducing Emissions from Deforestation and Forest Degradation). The activities under this operation include: (a) organizing multi-stakeholder consultations; (b) supporting the implementation of a transparent, rules-based, and inclusive accountability and enforcement system for forest governance; (c) aiding MNRE’s efforts to minimize and manage forest degradation from extractive activities, in particular from mining; (d) integrating land use planning; and (e) operating a reliable Monitoring, Reporting and Verification System (MRVS) for these activities,” the release read.

The IDB financing for this second phase is made up of a loan of US$17.16 million. With respect to the Citizen Security Strengthening Programme some US$15M was awarded to the government.

The release pointed out that the loan is second in the security sector since 2006 and is designed to build on the achievements of the Citizen Security Programme (1752/SF-GY).

It is also aimed at enhancing the sustainability of the achievements of the previous operation.

Both of the loans come 50% from the IDB’s ordinary capital, with a 30-year maturity, and a 6-year grace period, and 50% from the IDB’s Fund for Special Operations, with a single payment upon a 40-year gratuity, with a fixed interest rate. However that interest rate was not given.