GUYANA can now borrow up to U.S.$44M in loans immediately from the Organisation of Petroleum Exporting Countries (OPEC), Cabinet Secretary and Minister of State Joseph Harmon told reporters on Thursday.
Harmon said subject minister Winston Jordan had briefed Cabinet on Tuesday about an agreement signed with the OPEC Fund for International Development (OFID) recently.
The details of the agreement were not provided by the cabinet secretary.
However, in June, the Department of Public Information / Government Information Agency (DPI/GINA) reported that Minister Jordan was scheduled to sign the agreement on behalf of the Government in Vienna, Austria, on July 14, 2017.
“The agreement which caters for encouragement and protection of investment, would provide opportunities for Guyana to benefit from OPEC’s resources to advance private sector, trade finance and public sector operations,” DPI/GINA had reported.
OFID is an inter-governmental, developmental finance institution established by OPEC to foster financial cooperation between its members and developing countries.
Guyana’s relations with OPEC began in 1977, when it was known as the OPEC Fund.
The objectives of the fund are to promote economic development by encouraging the growth of productive private enterprise and supporting the growth of local capital markets.
Under the OFID, loans are made to financial institutions for on-lending to small, medium and micro-enterprises, as well as directly to specific projects.
OPEC’s objective is to co-ordinate and unify petroleum policies among member countries, so as to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.