Dear Editor,
I am writing to express my bemusement regarding the Vice President’s recent claims about the reduction in Guyana’s debt-to-GDP ratio. While the government’s efforts in economic management are commendable, it is disingenuous to take full credit for this achievement without acknowledging the critical role of the Paris Club Agreement.
Between 2004 and 2006, Guyana benefited from debt relief under the Paris Club, resulting in the cancellation of approximately US$730 million of its external debt. This substantial relief contributed significantly to reducing Guyana’s debt-to-GDP ratio from over 180% in 2004 to about 45% by 2006. To provide context, Guyana’s external debt in 2004 was around US$1.7 billion, which was reduced to under US$1 billion following the debt cancellations.
This debt relief was a key factor in the country’s financial turnaround and laid the groundwork for the improved debt metrics we see today. Omitting such a crucial detail from the narrative misleads the public into believing that the reduction was solely due to policies implemented during the current administration’s tenure.
True economic progress should be celebrated with full transparency, acknowledging all contributing factors. This will allow the public to better understand the complexity of economic governance and the genuine impact of current policies.
Sincerely,
Keith Bernard
