THE Government of Guyana continues to commit itself towards the belief in equality, in progress and in the power of the people to achieve a progressive life.

It is important that we understand the facts of our history to understand the facts of our present. Since 1992, history proclaims a number of great achievements which have contributed towards the development of our nation. Government inherited a foreign debt burden of US$2.1 billion. As a result, sustainable external debt levels were impossible to achieve because of limited funds.

Guyana managed to obtain economic stability and a stable currency exchange rate during the first half of 2002. After the 1992 debt burden inheritance, Government strived to rehabilitate the crumbling social and economic infrastructures and enhance other social services sector, such as health and education. However, because more than half of the country’s export earnings had to be utilized for repayment, the huge debt burden posed a problem. This directly hindered the developmental process of the country, which coerced Government to focus on possible debt relief strategies to achieve sustainable external debt levels and poverty reduction to aid growth.

Before, 94% of revenue serviced the repayment of debt, neglecting other sectors of the economy. However, today, only 4% of revenue is used for debt repayment, diverting revenue to other sectors to sustain economic growth.

Today, because of debt relief, funds are now available to focus on the country’s social sectors instead of debt repayment. In 2008, $18.5 billion was allocated towards the education sector for the construction, rehabilitation and maintenance of schools. Proceeds also went towards finalizing the new Education Strategic Plan for 2009 to 2013, drafting of the new Education act, expansion of literacy and numeracy programmes in schools, among other things.

The Health Sector in 2008 received $11 billion for the completion of the Lethem hospital, completion of the comprehensive diagnostic and treatment centres at Suddie, Leonora and Mahaicony. The Georgetown Public Hospital Corporation (GPHC) saw the expansion of services, such as cardiac surgery, hip replacement, and cancer treatment.

The IMF recognises the economic achievements of Guyana, and so Government remains committed to stabilise price levels and exchange rates, make certain that fiscal deficit is controlled, reduce unemployment, and keep an eye on the cost of borrowing money.

With, debt relief, Government can now focus on further achieving the Millennium Development Goals (MDGs), and preserve debt sustainability.
MARISSA LOWDEN