With the billions of dollars in revenue to come from the oil sector, Guyana must begin the process of strengthening its financial systems. This is necessary to ensure that there is increased transparency and accountability for the oil wealth. In support of this, the World Bank approved today, a US$35M Line of Credit (LOC).
In a statement to the media, the World Bank said that this financing focuses on strengthening financial stability and enabling sound financial development to promote macroeconomic stability and long-term growth. In particular, it will support banking reforms and depositor protection, the establishment of a deposit insurance scheme, implementation of a new insurance law, and the country’s anti-money laundering efforts.
The Bank noted that this Development Policy Credit, the first of a series of two programmatic financial and fiscal development policy credits, is financed from the International Development Association (IDA).
Finance Minister, Winston Jordan was quoted by the Bank as saying,“This financing provides critical support to our reform agenda and efforts to strengthen institutions and build a resilient economy that is capable of withstanding both external and domestic shocks. These reforms will be key to guide the management of oil revenues for the benefit of present and future generations.”
The World Bank’s Country Director for the Caribbean, Tahseen Sayed, also noted that Guyana is making important strides to promote financial resilience and improve fiscal management, and has embarked on a broad-based reform program. He said that these reforms will be key to building a strong economy that is underpinned by a strategic management of public resources for the benefit of the Guyanese people.