President Bharrat Jagdeo says he will continue to lead the government's missions to international financial negotiations until the country secures further debt relief under the enhanced-Heavily Indebted Poor Countries Initiative (E-HIPC).

"Too much is riding here," the President told reporters yesterday at an Office of the President press conference, adding that the issue of E-HIPC "warrants my personal attention."

After the enhanced debt relief is secured, the President said he would spend less time on Guyana's international economic programme, a portfolio he has not relinquished since assuming the presidency

Jagdeo says his involvement in the discussions with the International Monetary Fund, the World Bank and the Inter-American Development Bank (IDB) is not because he lacks confidence in his economic management team. Minister of Finance, Saisnarine Kowlessar, he said, is working on the 2002 budget for presentation shortly and that is the only reason he is not accompanying him on the trip. Kowlessar had previously indicated that the discussions with the IMF on a new three-year programme had to conclude before a budget is presented.

The President explained further that like a chief executive officer, he, Jagdeo had a few issues which he wanted to run with personally as these would guarantee the success of his term in office. He said US$25 million in further annual debt relief over the next 25 years would see an improvement in the quality of life of Guyanese as well as enhance the electoral fortunes of the PPP/Civic.

Jagdeo leaves for Washington on Sunday where he is scheduled to meet President of the World Bank, James Wolfensohn; President of the IDB, Enrique Iglesias; and Managing Director of the IMF, Horst Kohler. He is also expected to meet the executive directors and management of the various institutions as well the US State Department, USAID and the US Treasury Department.

The President indicated that his visit would allow for a review of Guyana's portfolio with these institutions for the past year and a look at the current portfolio in the pipeline. He said some issues in the last programme could not have been implemented speedily and he was looking to get the international financial institutions' (IFIs) support for implementation and for the speedy approval of new projects so as to generate new growth and continued development for Guyana.

He said he would be speaking to the institutions on the enhanced-HIPC initiative and would discuss with the IMF the new three-year Poverty Reduction and Growth Facility (PRGF) for Guyana.

"We will be discussing a bit more...as well as the timing of [Guyana's case for completion point] going to the boards [of the IMF/WB for approval]," Jagdeo said yesterday. He said any slippage in the timetable would mean Guyana would not benefit fully as there would be delays in implementing programmes.

Jagdeo said that at the bilateral level with the US government, he would look for enhanced relations and other possibilities.

Stabroek News was informed that the President's trip to Washington is to clinch a new three-year PRGF to secure the extra debt relief as the government and the IMF's recent mission to Guyana could not agree on a new programme which is crucial for budget preparations. This is said to be because of the various slippages in achieving targets last year as well as difficulties in reconciling proposed budget measures with revenue collections. But Jagdeo said the team was here on an exploratory mission, and not for negotiations, and to discuss some of the issues that may be part of the new three-year programme. The President said that the government and the IMF were very close and saw eye to eye on many policy issues.

Asked about the macro targets, particularly the fiscal deficit, the President said that the deficit was slightly larger than the target set in June but he was sure that it could be explained. He said that the assumptions underlying the target had changed. However, Jagdeo said he was prepared to challenge the IMF/World Bank to match Guyana's track record with any other country which had received relief under the E-HIPC to see which one had performed better than Guyana.

On the issue of whether the IMF and the government could not agree on 2001 being the base year from which to launch into the Poverty Reduction Strategy Paper, Jagdeo said that the disagreement here had to do with a US$25 million gap in financing for that strategy. He said the IMF's position was that to the extent that the resources could not be found, the programme would have to be scaled back. However, he expected that the profile of the economy will change year by year and will allow for the project objectives to be achieved.

The President denied assumptions that tax remissions have been on the increase, explaining that the components of remission have remained unchanged and what has happened is that the value of items imported under these tax exemptions has risen. Remissions have reportedly increased from about $9 billion three years ago to around $20 billion last year.

Jagdeo indicated that even in a comprehensive reform of the tax system this would not change as this will mean not honouring the concessions given to businesses to set up or invest in Guyana.

As to comprehensive tax reform for Guyana, the President said that the government intends to have further discussion this year on implementation of the value added tax.

The President would not say what areas he saw growth coming from this year, pointing out that he did not want to be accused of usurping the functions of the finance minister.