At the end of 2018, Guyana’s public debt had increased by 1.5 per cent, a figure representing 43.9 per cent of the country’s GDP, with a significant portion (33.9 per cent) comprising external debt.
According to the Annual Report of the Bank of Guyana, the increase in the external debt stock— 5.5 per cent more than in 2017— reflected higher disbursements received mainly from the Inter-national Development Association (IDA) and the Inter-American Development Bank (IADB) for project financing.
The total external debt at the end of 2018 was US$1,309 million, with disbursements for projects targeting citizen security strengthening, sanitation improvement, economic diversification, education sector improvement and financial and fiscal stability.
The report explained that obligations to multilateral creditors, which accounted for 58.5 per cent of total external debt, increased by 8.6 per cent or US$62 million to US$788 million.
Specifically, liabilities to the IADB increased by 4.3 per cent to US$525 million, reflecting a change in the debt stock of US$22 million during 2018. Indebtedness to the IDA expanded by 112.2 per cent or US$40 million to US$75 million, while commitments to the “Other” category of multilateral creditors rose by 4.5 per cent to US$38 million.
The ‘Other’ category includes such creditors as the OPEC Fund, the European Economic Community (EEC), the European Investment Bank (EIB) and the International Fund for Agricultural Development (IFAD).
In contrast, obligations to the Caribbean Development Bank (CDB) decreased slightly by 0.5 per cent (US$1 million) to US$150 million.
Total bilateral obligations, which represented 37.2 per cent of total external debt, increased by 1.5 per cent to US$487 million, while indebtedness to the Exim-Bank of China increased by 10.7 per cent or US$19 million to US$201 million. Liabilities to Kuwait and Libya rose by 2.9 per cent and 0.7 per cent to US$80 million and US$44 million, respectively.
Conversely, obligations to Venezuela, the Exim-Bank of India, and Trinidad and Tobago, declined by 4.7 per cent, 6.9 per cent and 64.4 per cent to US$115 million, US$16 million and US$4 million, respectively.
Liabilities to commercial banks declined by 4.3 per cent to US$18 million from US$19 million in 2017.
On the other hand, government’s domestic bonded debt, which represented 10 per cent of GDP, declined by 9.3 per cent during the year due to a reduction in the issuance of treasury bills, coupled
with the redemption of the second NIS debenture certificate.
The outstanding stock, which consists of treasury bills, bonds, debentures and the CARICOM loan, declined to GY$80,552 million, primarily on account of lower issuance of treasury bills to promote economic growth through the stimulation of credit to the private sector.
Additionally, the second certificate of the Non-Negotiable Debenture issued to NIS, was redeem-ed at a value of GY$244 million. This debenture was issued to NIS for offsetting its loss on investment in the Colonial Life Insurance Company Limited (CLICO).
Specifically, the total outstanding stock of treasury bills fell by 10 per cent to G$72,005 million as a result of lower issuance of the 182-day and 364-day treasury bills during the review period. There was no issuance of the 91-day treasury bills in 2018.
