| Guyana’s total public debt may be heading for a Parliamentary debate after revelations that last year, it was a staggering US$1.7B.It does not include the Amaila Falls hydro project loan which would be more than US$800M or the US$130M for a new international airport at Timehri.AFC’s MP, Moses NagamootooFormer President, Bharrat JagdeoFinance Minister, Dr. Ashni SinghIt also does not take into account the planned, Indian-built Specialty Hospital which is to be constructed with an Indian line of credit worth US$17M,Twenty years ago, in 1992, when the ruling People’s Progressive Party/Civic (PPP/C) took power, it inherited a debt of US$2B.The exchange rate at the time was $126 to the United States dollar. This translated into some $263 billion in local currency.Over the years, Guyana managed to have almost three-quarters of this debt written off from overseas bilateral financial institutions, the Paris Club and other lenders.According to Vice Chairman of the Alliance For Change (AFC), Moses Nagamootoo, whose party has seven seats in the National Assembly, claims by Finance Minister, Dr. Ashni Singh,NFL Jerseys Clearance, during his budget presentation last year that Guyana’s debt is at its lowest now in 20 years, may be totally misleading.As a matter of fact, Nagamootoo, a former senior executive of the PPP/C, is examining the possibilities of raising the issue in the National Assembly for a possible debate. The debt at the time was $378 billion, including a $40 billion debt from local entities.He believes that the debt rate is rising too quickly and unless checked, could prove threatening to Guyana’s future generations who will be saddled with the huge burden of repayments.Responding to questions from Nagamootoo on the debt, the Finance Minister on Thursday said that as at September 30, 1992, it was US$2,087.99 M (US$2.09B). At that time the exchange rate for the US dollar was G$126. The debt was equivalent to G$263,086M.This contrasted to March 31, 2012 when total public debt stood at US$1.743B at an exchange rate of G$204 to US$1. This was equivalent to G$355,580M.According to Minister Singh, the total public debt stock at March 31, 2010 stood at $312,180.26M at an exchange rate of $203.50 for US$1.As at December 31, 2010, the total public debt stock stood at $350,574.81M…at an exchange rate of $203 to US$1.The figures would suggest that Guyana has been borrowing more. In addition to several road projects, Government is also paying back for the Skeldon Factory and a host of other initiatives.Nagamootoo made it clear that the recent disclosure by Dr. Singh only reinforced that the fact that the country’s debt is at its highest.“Dr. Singh and (former President Bharrat) Jagdeo are pawning the future of the country,” he said.However, yesterday, during a press conference at the NCN studios, Minister Singh, insisted that his government has responsibly utilized the monies borrowed, as is evidenced from the many infrastructure projects, including schools and roads.He pointed out that the debt figures had been a feature published every year in the national budget report and would also appear in the Bank of Guyana reports, in detail.The US$1.7B last year is less than the $2B the government had inherited. In terms of amount, that is an accomplishment, he said.Back in 1992, the country had nothing to show… the Treasury was empty and international reserves were almost zero. This was coupled with poor infrastructure…poor roads and facilities that were literally collapsing.But a spokesman for the former government pointed to the various roads among the Soesdyke/Linden Highway, the West Demerara Highway, the Corentyne Highway, the Bank of Guyana building, the Timehri International Airport, the Harbour Bridge and many of the hinterland roads.The PPP/C government had not only to rebuild the country, but raise Guyana’s creditworthiness, to prove to lenders that there is a framework of integrity in place, Dr Singh argued.Twenty years later now, Guyana can say it has an improved country, with new schools, hospitals and roads, he added.The country’s international reserves are its highest at US$800M-plus.“This is what is different from 1992. We owe less but we have more to show. We have used responsibly the monies that we borrowed.” |
