The National Industrial and Commercial Investments Limited (NICIL) disclosed moments ago that it has credited the account of the Guyana Sugar Corporation (GuySuCo) with $250,000,000. NICIL explained that this sum represents a partial response from NICIL to GuySuCo’s request to government for a ‘bailout.’ This brings the total disbursements to the state-owned company from July 2018 to now, to $9,970,759,568. This is in addition to the close to $40 billion in disbursements it has received from the government.
Further to the notice of its cash injection, NICIL sought to remind GuySuCo that it should seek to resolve its financial challenges through professional engagements with it and by extension the Government, rather than resort to “petty disclosures and half-truths in the press.”
NICIL added, “We strongly advise the Directors of GuySuCo to obey the terms and conditions of the bond and to seek to ensure compliance with same. In particular, we urge that it honours the reporting of its expenditure schedule to NICIL and the bond holders.”
The Guyana Standard understands that NICIL will in the very near future make available to the agency, a further $750,000,000. NICIL made it pellucid that the disbursement can only be possible when NICIL and GuySuCo can engage in solutions-driven discussions about making it a commercially viable entity.
Earlier last month, GuySuCo had disclosed to the media that it had reached rock-bottom. The state-owned company disclosed that it is neck-deep in $2.1B debt, that the cash in hand is barely enough to survive this week, and two of the entity’s accountants, Ramesh Persaud (Vice Chairman) and Paul Cheong ,felt obliged to resign. Without an urgent cash injection, John Dow, Chairman of the GuySuCo Board told President, David Granger that the industry would close. (See link for more details: https://www.guyanastandard.com/2020/06/09/guysuco-hits-rock-bottom-chairman-begs-granger-for-funds-to-survive-beyond-this-week/)