Guyana will strengthen its public policy and fiscal management response to the COVID-19 health and economic crisis with a US$34 million loan from the Inter-American Development Bank (IDB).
The operation, the first of a two programmatic-based loan series, will support Guyana’s government efforts to counteract the negative social and economic impacts caused by the COVID-19 pandemic.
The loan will support macroeconomic stability; facilitate the availability and timely execution of public resources; enable policies to streamline the provision of essential goods and services; and introduce temporary measures to protect the income of vulnerable households and increase liquidity for businesses.
In addition, Guyana will use IDB financing to strengthen the execution of public spending and minimize the effects of market and price disruptions in the procurement of supplies necessary to address the pandemic. And last, the loan will also support measures to promote Guyana’s economic and fiscal recovery in the post-pandemic era.
Of the total loan, US$10.2 million will come from the IDB’s concessional lending window and it will carry a maturity and a grace period of 40 years, and an interest rate of 0.25 percent. The remaining US$23.8 million will come from the Bank’s Flexible Lending Facility, with a 20-year maturity period, a grace period of 5.5 years and an interest rate based on LIBOR.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.