The Government of Guyana is touting its effective debt management practices as being responsible for the large decline in the country’s debt ratios over a sustained period. With its history of “prudent” debt management of the country’s economy post 1992, coupled with its developmental policies, it has been continuing this trend of stewardship, a Ministry of Finance release stated recently.
It noted, however, the government’s acknowledgment that new financing was still required as the country’s economy expands, but as new loans are contracted, the administration remains “steadfast” in maintaining its fiscal responsibility. It was pointed out that Guyana’s debt-to-GDP ratio declined from over 600 percent in 1991 to 27 percent in 2023. Additionally, in 1992, about 90 cents of every dollar of revenue earned was used to make debt service payments and today this has been significantly reduced to about 6 cents of every dollar.