Two external loan agreements totalling US$26M, that were signed between the Government of Guyana and the International Development Association (IDA), will be laid in the National Assembly.
At a post-Cabinet press briefing yesterday, Minister of State, Joseph Harmon said the first includes a financing credit arrangement of Special Drawing Rights (SDR) of 24.4Million that will provide financing in support of the first Programmatic Financial and Fiscal Stability Development Policy programme.
An advanced finance agreement to the tune of US$1.6Million will be used for the proposed Oil and Gas Capacity Building project.
Approval was granted by the Cabinet and the agreements will be presented to the National Assembly in accordance with the External Loans Act.
The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries. Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
IDA complements the World Bank’s original lending arm—the International Bank for Reconstruction and Development (IBRD). IBRD was established to function as a self-sustaining business and provides loans and advice to middle-income and credit-worthy poor countries.
IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 25 to 40 years, including a 5- to 10-year grace period. IDA also provides grants to countries at risk of debt distress.