The Ministry of Finance yesterday signed a US$35 million (almost $7.3 billion) policy-based loan agreement with the World Bank to support the modernisation of the country’s financial infrastructure.
According to the program document for the Programmatic Development Policy Credit (PDPC) Project, the series supports Guyana’s reform efforts to reinforce sound financial sector development and to strengthen fiscal management. It says the proposed operation is the first in a series of two operations building on three pillars of policy reforms. “The first pillar supports the Bank of Guyana’s (BOG’s) ability to manage financial stress including establishing a deposit insurance scheme. The second pillar supports both regulatory reform for the insurance sector as well as domestic and international payment transactions. The third pillar supports stronger fiscal management through a sovereign wealth fund (SWF) for intergenerational savings, better debt management, and improved public investment management,” it explains.
The PDPC, the document adds, forms part of a developing engagement with Guyana spanning financial sector, fiscal, and oil and gas sector management.