The PPP/C government is still trying to mobilise the $4.5 billion it says will be earmarked to help households hit by the COVID-19 pandemic and Vice President Bharrat Jagdeo has announced plans to recognise the efforts of frontline health workers in the upcoming 2020 budget.
He made the announcement at a press conference held at the Arthur Chung Conference Centre (ACCC) on Friday.
Jagdeo said the new government had heard stories of the tribulations of health workers during the pandemic and wished to assure them that the “appropriate recognition” will be given.
“We found that a lot of people are on the frontlines and there are sad stories from the doctors and nurses on how they are dealing with this pandemic. They are on the frontline not adequately equipped with PPE’s (Personal Protection Equipment) nor are they rewarded for this and I want to assure that the President has said [that] in the upcoming budget they will have the appropriate recognition of their work,” he explained.
According to Jagdeo, from the time the PPP/C entered office two weeks ago, the government began bilateral and multilateral talks with international partners to secure funds for the $4.5 billion to be spent on the affected households.
The Office of the President, Jagdeo said, has held talks with the International Development Association of the World Bank, the Inter-American Development Bank, the European Union and several other organisations.
Jagdeo said that while they have not secured all the funds, they are committed to assisting the affected households and now the administration has to decide whether the funds can be accessed from the Treasury or through borrowing.
“The major issue for us now is whether we can use money from the Treasury or we can raise money in the interim through borrowing and then once the budget is passed repay that loan,” Jagdeo stated.
President Irfaan Ali in his inauguration speech just over a week ago announced plans to secure an initial sum of $4.5 billion as an emergency response to help at the household level.
Jagdeo stated on Friday that the government is also mapping out a plan to effectively disburse the assistance to the people in a transparent manner and ensure that it reaches those directly affected. “There are a large number of people out there, who are dependent on the government for assistance either for food for their families or some cash assistance… [We are looking at] how it can reach the people who actually need the help,” he stated.
More measures to assist the people will be presented in the upcoming budget, which is scheduled to be completed in another three weeks.
Jagdeo went on to state that from their reports and surveys they have found that COVID-19 has caused a massive deterioration in business during the pandemic.
As a result, he said President Ali has asked the Central Bank to begin the process to ensure liquidity is available for the consuming public and businesses wishing to restart operations.
On this note, Jagdeo said that the Central Bank will be suspending elements of its supervisory guidelines. He noted that the Central Bank has already started the process and will extend the suspension to allow the banks to renegotiate interest rates which is prohibited under the supervisory guidelines. Banks will be allowed more time before having to classify loans as bad debts.
The President at his inauguration had said that a meeting was held with the Governor of the Bank of Guyana, Dr Gobind Ganga, who was “directed” to extend regulatory permission so as to allow for bankers to continue extending moratoriums.
“We have also looked at the possibility of adjusting the Reserve Requirement, which will allow the banks to have more disposable resources and tying that adjustment with lower interest rates. We have started to examine from a fiscal perspective what support we can give to the private sector and other groups all with the view of supporting a resumption of the economic activities and putting our people back to work,” Ali explained.
The Vice President said that the idea is to treat the pandemic seriously while building the capability to tackle it and ensure strong protocols in every sector for the reopening of the economy.
“But at the same time that reopening is vital. So is striking the balance between responding to the pandemic with having a strong medical response and reopening the economy, so those people who don’t have jobs they too can go out in a controlled environment taking all the safeguards and following protocols and they can earn a living”, he said.
