IDB pumps US$130M into Guyana’s economic recovery from Covid pandemic

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People in Georgetown

GEORGETOWN, Guyana: Guyana will improve the efficiency and effectiveness of its public policy and fiscal management response to the COVID-19 pandemic with a US$130 million loan from the Inter-American Development Bank (IDB).

The operation, the second of a two programmatic-based loan series, will support Guyana’s government efforts to promote macroeconomic stability and withdraw emergency tax measures as part of a strategy to adapt its public policy and fiscal response to the new phase of the COVID-19 pandemic. The first phase of this operation previously approved in December 2020 was disbursed in January 2021.

This new phase of IDB financing will also support measures to increase the efficiency and transparency of government procurement processes as well as measures to promote greater fiscal sustainability, address climate change and accelerate economic recovery with greater gender equality. These include the approval of a medium-term fiscal framework, the implementation of recovery measures included in the Guyana COVID-19 National Action Plan and the approval of a new institutional framework for public investment management, among other measures.

The IDB loan has a maturity period of 20 years and a grace period of 5.5 years and an interest rate based on the Secured Overnight Financing Rate (SOFR).