IDB providing US$30m under Guyana-Canada sovereign loan pact
The Inter-American Development Bank (IDB) is providing US$30m under the historic US$120m sovereign loan pact between Guyana and Canada.
A joint statement yesterday on the agreement which was signed on Sunday said that the CAD$120 million loan, over a 10-year period will be disbursed in two tranches of CAD $81M and CAD $39M respectively. The loan will encompass a climateresilient debt clause, which will automatically pause debt service payments if Guyana experiences a climate incident, natural disaster, pandemic or epidemic. A Technical Assistance Facility of an additional CAD$4.5 million will also be attached to the sovereign loan to support implementation of activities.
Canada’s Sovereign Loans Programme (SLP), the statement said, provides loans on concessional terms to eligible countries, tailored to their needs and priorities as they relate to poverty reduction and peace and security. The SLP improves the breadth of support Canada can deploy and aligns Canadian international assistance with other leading donors.
The loan will be used to improve social protection and public assistance under the Ministry of Human Services and Social Security (MHSSS). This includes support for people living with disabilities through increasing access to the Public Assistance Programme and by supporting the implementation of the Learning Lab, which will deliver training courses. The loan will also support gender empowerment by providing services for victims of gender-based violence, economic empowerment of women, and support victims of trafficking-inpersons. The loan initiative will also improve the
efficiency of the social safety nets by supporting a strategy for the digital transformation of the ministry.
Canada’s Minister of International Development, Ahmed Hussen stated that Canada’s goal is to help Guyana generate beneficial social, economic, and environmental outcomes, for the good of all its citizens, through a loan that is tailored to the
country’s own needs. He added in the statement that the loan will contribute towards attainment of the Sustainable Development Goals and aligns with Canada’s Feminist International Assistance Policy by
ensuring that marginalized people have equal access to resources and opportunities for a better future.
Finance Minister Dr Ashni Singh expressed the Guyana Government’s appreciation to
Canada, while also acknowledging the role played by the IDB in intermediating the proceeds of the loan through an innovative partnership involving the Bank, Canada and Guyana.