GUYANA challenged the Caribbean Development Bank (CDB), the Region’s premier lending institution, to be at the forefront of its charge to transformation, noting that with financial and technical support, the country can redeem its status as the breadbasket of the Caribbean and simultaneously enhance public infrastructure.

At the 49th Annual Meeting of the Board of Governors of the CDB – hosted in Trinidad and Tobago from June 5-6, 2019 – Guyana’s Minister of Finance, Winston Jordan, took note of the fact that the Caribbean Community (CARICOM) has an import food bill which runs into the millions.

With Guyana’s oil finds thus far approximated to be worth over six billion barrels, Jordan said the country has the ability to add value to the Region.

“…Guyana possesses rich agriculture land in abundance which, when blended with investors’ capital and know-how, can allow us to consume what we produce and produce what we consume. In doing so, we will be creating jobs, adding value and keeping our hard-earned resources in the Region,” he told the audience which included governors and government representatives.

To do so, the minister said that the county will require the CDB’s assistance as it still faces major capacity and capability gaps.

Heading in to the new sector, he said that the government is aware of the risks it can face with the “paradox of plenty” and has therefore decided to plan strategically to manage its fiscal affairs.

“Yes, it is true that our GDP growth is forecast to average 12 per cent per annum for the next 10 to 15 years but we will need to ensure that growth emanates from a modern, diversified and inclusive economy – one that is resilient and capable of withstanding and absorbing shocks without major disruption,” he said.

He later implored: “Guyana has many needs; assistance for which we look to our partners. I, therefore, enjoin the bank to step up and provide us with the support we need and offer the insights and guidance required. Help us to push our faltering project portfolio and build up a pipeline of bankable investment projects. With anticipated steep growth in public investment, our Region’s premier lending institution must be in the forefront of Guyana’s charge to transformation.”

In 2018, Guyana’s economy returned a growth rate of 4.1 per cent, the highest since 2014.

The country is continuing in the trend of positive economic growth averaging about 3 per cent over the last four years while prices remained relatively stable with inflation under two per cent.

Meanwhile, there has been a moderate deterioration in the exchange rate while debt was contained to a sustainable level.

“All this is indicative of our prudent management of the economy in the face of a difficult and sometimes hostile international and domestic climate,” stated Jordan who reported on the aforementioned data.

He told the audience that despite the relatively good performance, Guyana’s economy is still fragile and will need tremendous assistance moving forward.

This led the finance minister to indicate that although graduation from the Special Development Fund concessional resources is inevitable, this must not occur prematurely for the country.

The Special Development Fund is the CDB’s largest pool of concessionary funds which are used to address poverty and human development challenges throughout the Caribbean Region.

The fund is generated through contributions from all member countries of CDB and non-members.

At the same forum, Jordan thanked CDB President, Dr. William Warren Smith and his staff for the assistance rendered to Guyana to support its development in 2018.
He noted that the country has benefitted from US$6.7M in disbursement increasing its project portfolio to US$150M.

“These resources were used to good effect to narrow our infrastructure gap; strengthen our sea defences; improve our road network; expand and enhance our potable water system and expand our education system, including upgrading facilities at the University of Guyana among others,” the finance minister reported.

However, he pointed out that outflows from Guyana to the CDB were approximately US$4M more than dismemberments and requested that the bank do all in its power to ensure this occurs less frequently.

“While occasions of net negative flows to any country may occur, we expect that those will be infrequent. I, therefore, urge the bank’s management to pay close attention to the repayment of loans and the pacing of loan and grant flows to its borrowing members,” he said.

The CDB’s Annual Meeting of the Board of Governors is the bank’s flagship forum for discussion among the institution’s governors and sector leaders; this year’s theme was centered on ‘Transformation’.