THE Guyana Gold Board (GGB) has reduced its deficit at the Bank of Guyana (BOG) from $14,469,024,924 in November 2016 to $6,764,937,380 in November 2017 as a result of the agency’s capitalising on the spike in gold prices and through tighter spending-control measures.

According to a statement issued by the Ministry of Natural Resources Friday, the deficit was incurred in 2012 and 2013 when the Gold Board borrowed large sums from the national treasury to trade in gold, which resulted in massive losses.
“Since coming into office the APNU + AFC administration has been working assiduously to bring the debt down and to better regulate the sector. These efforts have shown success,” the statement said.

A ‘buffer stock’ of gold was maintained and kept readily available whenever there were spikes in gold prices and this proved to be a redeeming feature which yielded much revenue over the period.

The ministry said not waiting for huge profits but to access profitability of at least US$5 per ounce. The GGB also engaged in conservative derivative instruments as a means of generating additional revenue; the statement said, while noting that the entity’s cost-cutting measures included reduction in the number of flights between Georgetown and Bartica; and streamlining international gold shipments, stringent inventory controls and effective management of operational costs.

That aside, the GGB plans to employ more of the same strategies among other things to bring an end to the existing deficit and move the agency towards greater profitability.
“The Ministry of Natural Resources congratulates the chairman, members of the board, management and staff of the Guyana Gold Board on this stellar achievement and offers its support in the coming year for its efficient regulation of the trading of gold.”