Netherlands cancels Guyana’s commercial debt
Kaieteur News
July 8, 2004
In a press release issued by Guyana’s Ministry of Finance, it is stated that on Tuesday, June 21 last, the Netherlands Government confirmed in a letter to the Government of Guyana that they have cancelled US$4, 732,227.14 or G$938.2, representing 100% of the stock of debt of all commercial debt owed by the Government of Guyana.
The debt is under the bilateral rescheduling agreements concluded on April 7, 1997 and July 4, 2000 in accordance with the terms and conditions of the Paris Club Agreed Minute of January 14, 2004. This Paris Club Agreed Minute provides for 100% reduction of the eligible debt, including the accrued up to December 1, 2003.
This brings the total debt reduction provided by the Dutch Government to just over US$15.5 million or G$3.087 billion since the first debt stock reduction operation in May 1996 and formalises the commitment to forgive 100% of all loans owed to, guaranteed by, or insured by the Netherlands Government through December 1, 2003.
The release noted that the loans include US$4,732, 227.14 or G$938.2 million held by the Dutch credit insurance company, Atradicus Dutch State Business formally known as Nederlandsche Credietverzekering Maatschappij nv.
In the release which was received yesterday by Kaieteur News, it is stated that in a letter dated June 30, 2004, Guyana’s Minister of Finance, Saisnarine Kowlessar conveyed his gratitude and deep appreciation on behalf of the Government of Guyana to the Minister of Finance, Gerrit Zalm of the Netherlands.
The Minister pointed out in his letter “the Government of the Netherlands has been at the forefront of the international movement towards writing off the debts of countries under the HIPC initiative”.
Kowlessar said the willingness of the government of the Netherlands 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 debt relief will also help to consolidate the gains made thus far towards achieving PRSP and Millennium Development Goals and to confront the challenges ahead with renewed vigor and confidence, thus keeping Guyana on a path of sustainable development.