Guyana gets US$130M IDB loan to improve response to COVID-19

Jul 16, 2022 News

Kaieteur News – Guyana is expected to improve the efficiency and effectiveness of its public policy and fiscal management response to the COVID-19 pandemic, with a US$130 million loan from the Inter-American Development Bank (IDB).

The money comes as the second of a two programmatic-based loan series that will support Guyana’s government efforts to promote macroeconomic stability and withdraw emergency tax measures as part of a strategy to adapt its public policy and fiscal response to the new phase of the COVID-19 pandemic, the IDB said in a press release.

The first phase of this operation previously approved in December 2020, was disbursed in January 2021.

According to the IDB the new phase of financing will also support measures to increase the efficiency and transparency of government procurement processes, as well as measures to promote greater fiscal sustainability, address climate change and accelerate economic recovery with greater gender equality.

These include the approval of a medium-term fiscal framework, the implementation of recovery measures included in the Guyana COVID-19 National Action Plan, and the approval of a new institutional framework for public investment management, among other measures.

The IDB loan has a maturity period of 20 years and a grace period of 5.5 years and an interest rate based on the Secured Overnight Financing Rate (SOFR).