Stabroek News
May 21, 2001

President Bharrat Jagdeo says he is prepared to make "liberal" use of the tax system to attract new investment into Guyana and to assure investors of a "healthy return".

Speaking with host of 'Plain Talk', Christopher Ram, in a programme which was to be aired yesterday, Jagdeo said he would be pursuing an aggressive campaign to stimulate investors' interest in Guyana. He hopes to secure the support of the main opposition PNC REFORM in his campaign for Guyana.

"To do that [stimulate interest in Guyana], I am prepared to use the tax system liberally," Jagdeo told Ram but added that the details will be unveiled in the 2001 national budget presentation.

Speaking about his plans to resuscitate the economy, Jagdeo said the post-election violence had caused a great deal of damage to the economy as it had transmitted an image overseas which no investor wanted to see.

Jagdeo said one contradiction that boggled his mind was the claims being made of unemployment and marginalisation and yet the environment needed to attract investments to create jobs had been harmed. He told Ram that it was because of the importance of attracting new investment that he decided to create an investment and trade promotion agency.

"I am hoping to have people from the opposition also represented on the board of this new agency," the President said. This agency, he added, would have a greater international presence and would actively seek out investors.

In terms of the budget profile, Jagdeo said that once Guyana secured the additional debt relief under enhanced HIPC terms, which he expected by year-end, debt servicing would drop to 12 per cent of revenue compared to a high of 94 per cent of revenues in 1993.

This freeing up of resources, he said, would make Guyana a solvent country once more and monies would go towards solving Guyana's social problems and stimulating demand to expand the productive sectors.