Over the last few weeks, a number of concerns were expressed that raising the ceiling for Government guarantees of loans to public entities has the effect of increasing the public debt. These concerns relate specifically to the Government’s guarantee of the Power Purchase Agreement (PPA) between the Guyana Power and Light Inc. (GPL) and Amaila Falls Hydro Inc. for the supply of electricity. The Government has maintained that its guarantee of the PPA has no effect on the public debt.
Today, we discuss the concept of public debt and how it relates to Guyana as well as guarantees of