GOVERNMENT is continuing its legacy of effective debt management, a practice that has seen the country’s debt-to-GDP ratio plummet from over 600 per cent in 1991 to just 27 per cent in 2023.
This achievement reflects a consistent strategy of prudent financial stewardship that began in the early 1990s, and remains a cornerstone of current administration policies aimed at improving citizens’ lives.
The administration’s commitment to maintaining a strong debt record comes as the economy expands rapidly, necessitating new financing.

Despite this, the government is determined to uphold its exemplary debt management practices. Historically, approximately 90 cents of every dollar of revenue was used for debt service payments in 1992. Today, this figure has been reduced to just 6 cents per dollar.
In its 2023 Article IV Report, the International Monetary Fund (IMF) lauded Guyana for its impressive debt management, noting that the risk of overall and external debt distress remains moderate. The IMF highlighted that debt dynamics have improved significantly, bolstered by incoming oil revenues. The report praised the government for its dedication to maintaining debt sustainability and balanced growth while addressing development needs.
As part of its ongoing efforts to manage debt responsibly, the Guyanese government recently presented two amendatory loan agreements to Parliament. Senior Minister in the Office of the President with Responsibility for Finance and the Public Service outlined the details of these agreements:

1. Climate Resilience Debt Clause Integration: The first agreement, dated May 24, 2024, amends the Export Finance Facility Agreement from June 14, 2022. This amendment introduces a Climate Resilient Debt Clause into the agreement with UK Export Finance and UniCredit Bank Austria AG. This innovative clause is designed to enhance Guyana’s economic resilience by allowing for debt payment deferrals in the event of climate crises, natural disasters, or health emergencies. This flexibility will enable the country to redirect financial resources towards crucial recovery efforts, such as repairing infrastructure or procuring medical supplies, during times of severe environmental or health-related shocks.
2. Adjustment to Combat Human Trafficking and Empower Women: The second agreement, dated July 4, 2024, revises the Term Loan Facility Agreement from December 22, 2023, with Canada. This amendment modifies the repayment schedule to facilitate the drawdown of the second tranche of CAD 39 million. The funds will be used for initiatives to combat human trafficking, address gender-based violence, and promote women’s economic empowerment.
The government’s proactive approach to debt management and financial planning underscores its commitment to delivering on promises of a better future for all Guyanese, while maintaining transparency and prudence in its financial dealings.