Guyana gets US$27M more debt write-off
GUYANA'S Ambassador to Washington, Dr. Odeen Ishmael yesterday signed an agreement for US$27M of debt relief to the country under the Highly Indebted Poor Country (HIPC) Initiative. The agreement signed at the World Bank headquarters in Washington, writes off money owed by Guyana to the International Development Association (IDA) of the bank. Guyana's debt to IDA amounted to US$27,108,000M and this will be put in the HIPC trust fund for use here in social security and poverty alleviation programmes. "I also assure all our international creditors that such debt relief will go a long way in fighting poverty and improving the economic welfare and standards of living of our people," Ishmael said at the signing. "I want to assure you that the Government of Guyana has, with the support of the donor community, undertaken a broad-based programme of macro-economic, structural and social development policy reforms (the macro-economic reform programme), and based on this, requested debt relief under the HIPC debt initiative." Ishmael emphasised that the debt problem affecting Guyana and many other developing countries [please note: link provided by LOSP web site], is one of major concern, urging more write-offs for countries "oppressed by the millstone of debt hanging around their necks." He noted that this will help free up additional financial resources for further social and economic development in the countries. Guyana in May this year won approval for debt write-offs under the World Bank's and International Monetary Fund's (IMF) HIPC Initiative. This allows the country to benefit from a US$256M debt relief annually. The money has to be channelled into the social sector. Last month the Paris Club group of creditors approved a US$127M debt write-off for the country. The creditors also signalled they were ready to further reduce Guyana's debt in the HIPC framework.
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