CANADA has cancelled all Guyana's debt to that country, the Government Information Agency (GINA) reported yesterday.
It said Finance Minister, Mr. Saisnarine Kowlessar, on July 12 signed an agreement to cancel US$1.4M in commercial debt, representing 100% of Guyana's debt to Canada.
The agreement provides for a cancellation of US$1.4M on the total principal amount outstanding, as well as the interest accrued up to December 1, 2003, the agency said
The cancellation is in keeping with the Canadian Government's commitment to Guyana under the Enhanced Heavily Indebted Poor Countries Initiative (EHIPC).
This brings the total debt reduction to Guyana by the Canadian Government to about US$5.5M or G$1.1 B. Guyana first gained debt reduction from Canada in May 1996.
Thanking Mr. Ralph Goodale, Canadian Minister of Finance, Kowlessar said the willingness of the Government of Canada to grant Guyana exceptional debt relief “will go a far way in helping the Government of Guyana to improve its delivery of social services and fight poverty''.
The Board of Governors of the Inter-American Development Bank (IDB) in March agreed to provide debt relief to Guyana equivalent to US$65.1M in net present value when it acknowledged that Guyana had reached the completion point under the HIPC initiative.
As at March 31, 2004, Guyana's stock of international debt stood at US$1.1B, GINA said.