Guyana and China are to sign a concessional loan agreement tomorrow.
The announcement today by the Ministry of Foreign Affairs coincides with the scheduled arrival in the country of China’s Foreign Minister, Wang Yi.
A statement from the Ministry of Foreign Affairs said Greenidge and Yi are to sign two agreements: the “Framework Agreement Provision of a Concessional Loan between the Government of the Co-operative Republic of Guyana and the Government of the People’s Republic of China” and “The Agreement on Economic and Technical Cooperation between the Government of the Co-operative Republic of Guyana and Government of the People’s Republic of China”.
The size of the loan from China, its terms and its purpose will be closely watched. Guyana recently signed on to China’s ambitious road and belt initiative and there have been growing international concerns that the acceptance of loans from Beijing could leave some countries vulnerable to defaulting and loss of assets.
The terms of the proposed economic and technical cooperation agreement will also be closely watched in light of Guyana’s developing oil and gas economy.
The statement said that a handover ceremony will also be held to mark China’s contribution to support the hosting by Guyana of the Seventeenth Session of the Committee for the Review and Implementation of the Convention (CRIC 17) of the United Nations Convention to Combat Desertification (UNCCD), scheduled to take place early next year in Georgetown.
