GUYANA will improve the efficiency and effectiveness of its public policy and fiscal management response to the COVID-19 pandemic with a US$130 million loan from the Inter-American Development Bank (IDB).

According to a release, the operation, the second of a two programmatic-based loan series, will support Guyana’s government efforts to promote macroeconomic stability and withdraw emergency tax measures as part of a strategy to adapt its public policy and fiscal response to the new phase of the COVID-19 pandemic.

The first phase of this operation previously approved in December 2020 was disbursed in January 2021.
This new phase of IDB financing will also support measures to increase the efficiency and transparency of government procurement processes, as well as measures to promote greater fiscal sustainability, address climate change and accelerate economic recovery with greater gender equality, the release said.

These include the approval of a medium-term fiscal framework, the implementation of recovery measures included in the Guyana COVID-19 National Action Plan and the approval of a new institutional framework for public investment management, among other measures.

The IDB loan has a maturity period of 20 years and a grace period of 5.5 years and an interest rate based on the Secured Overnight Financing Rate (SOFR), the release said.

The Inter-American Development Bank, established in 1959, is devoted to improving lives. The IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean, the release said while noting that it also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.