Dear Editor,

I REFER to a letter captioned, “Concerns are being raised about Guyana’s growing debt”, which was written by Donald Ramotar, and appeared in the Stabroek News, Saturday, September 3, 2016. I assume that Donald Ramotar is the same individual who is the immediate past Executive President of the Co-operative Republic of Guyana.Since his demitting office, following two consecutive rejections at the polls by the majority of Guyanese, Mr. Ramotar has been occupying himself with writing letters to the press, all of which contain spurious allegations that are designed more to inflame than inform the populace. His latest missive follows the pattern he has established for himself. Mr. Ramotar claims that concerns were being raised in many quarters, but failed to identify a single instance of such. He then goes on to speak of “The latest report states that our debt is climbing.” Which report? Again, none has been identified. And, frankly, none exists, because he tried to pass a falsehood on to the Guyanese people, hoping it would resonate.
What are the facts?
Fact 1: Since coming to office, in May 2015, the Coalition Government has contracted a total of three loans for a value of US$55.3 million, as follows: Farm to Access Road Project, (US$1.6mn); UG Science and Technology Project Extension, (US$3.7mn); and Ogle Bypass Road, (US$50mn). Of that amount, only US$1.4 million has been disbursed and counted as part of the public debt. All of these loans were at the discussion stage with the PPP/C Government, prior to May 2015.
Fact 2: Between June 2015 and June 2016, the total public debt, comprising external and domestic debts, increased by less than 1 percent, or from US$1.54 billion to US$1.55 billion. This marginal increase reflects an increase in the issuance of 91-day and 182-day Treasury bills. However, the total public debt declined from US$1.6 billion at end-December 2014 to US$1.54 billion at end-December 2015.
Fact 3: Between June 2015 and June 2016, the external debt declined in nominal terms by 2.7 percent, or from US$1.18 billion to US$1.14 billion.
Fact 4: Between June 2015 and June 2016, total principal and interest repaid reduced from US$39.05 million to US$31.21 million, a decline of 20 percent. This was due mainly to reduced repayments to Venezuela, after that country halted supplies of petroleum under the PetroCaribe arrangement and the Guyana-Venezuela Rice Trade Agreement.
Fact 5: The total public debt to GDP ratio at end-December 2015 was 48.6 percent, down from 51.9 percent at end-December 2014.
Fact 6: The total debt service to revenue ratio at June 2016 was 7.5 percent compared to 9.3 percent at June 2015.
As the above facts indicate, Guyana’s debt profile remains stable and sustainable; we are in a better position today than 15 months ago, when this Government entered office. What the Guyanese populace should know, though, is that, at the time the PPP/C Government left office, there were 31 disbursing loans with an approved value of US$616.2 million. Of that amount, less than half or US$245.7 million, had been disbursed and, thus, formed part of the national debt. The balance of US$370.5 million will be disbursed in future. So, even if this Government did not contract a single new loan in the coming years, the national debt will still increase by US$370.5 million, less any sums that would have been repaid or written off over that period.
The rest of Mr. Ramotar’s letter is replete with misrepresentations and the usual politicking and propaganda. They have been dealt with repeatedly by officials of this Government and, therefore, do not need to be addressed here. Suffice it to say that this Government believes in maintaining a strong macroeconomic position that is conducive to the growth of the economy and increasing its international competitiveness. In our single-minded pursuit of this objective, we will neither be side-tracked nor otherwise distracted by the diatribe of a failed president, whose Goebbelian posture will not be allowed to gain traction in our society.
Yours faithfully

Winston Jordan
Minister of Finance