The Inter-American Development Bank (IDB) has made available to Guyana a US$11.64 million loan to assist the country in preparing for its transition towards becoming a major oil and gas producing state.
According to an IDB press release yesterday, this is a policy-based loan that is designed to support the strengthening and the sustainability of the energy sector in Guyana by contributing to the institutional development of oil and gas governance and the development of cleaner energy sources for electricity generation.
The loan is to be funded in two components totalling US$11.64 million. The first component of US$5.82 million from the IDB’s Ordinary Capital, is to be disbursed within two years, with a grace period of 5.5 years, and an interest rate based on the London Interbank Offered Rate (LIBOR). The second component of US$5.82 million from the IDB’s Concessional Ordinary Capital, is to be disbursed within two years, with a grace period of 40 years, and a 0.25% interest rate, the IDB release added.