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IDB helps Guyana ensuring minimum levels of quality of life for vulnerable persons

The US$30.4 million program will contribute to support minimum income levels for those affected by COVID-19 in the immediate period, and preserve the human capital of those affected by the COVID-19 crisis in the country. 

The Inter-American Development Bank (IDB) approved a $30.4 million loan to contribute to ensuring minimum levels of quality of life for vulnerable persons amid the crisis caused by COVID-19 in Guyana. To do so, the program will contribute to support minimum income levels, and preserve the human capital of those affected by the pandemic.  

In Guyana, as of December 8, 2020, there have been 5,727 confirmed cases and 154 deaths from COVID-19. The crisis caused by this pandemic negatively affected the living standards of nearly all people. Particularly vulnerable groups include low income families, the elderly, individuals with disabilities, and even women, who suffered increased rates of intimate partner violence as an unintended consequence of the confinement measures. 

In addition, the pandemic will have a negative impact on learning, with potential long-term effects on human capital and inequality. It is expected to directly impact the education sector, both on the demand side and on the supply side.  

To address these challenges, the IDB has approved a project that will have two main components: social protection and support for educational continuity.  

In its social protection component, it will support: temporary extraordinary cash transfers of the Old Age Pension Service and the Public Assistance; electricity bill credits for vulnerable households consuming less than 75KWH per month; the implementation of the new Survivors Advocates Program, who will help women victims of violence access the criminal justice system, agency referrals, emergency shelters, and cash transfer programs.  

In the education component, the operation will finance actions to mitigate the effects of school closures during the COVID-19 pandemic and prepare for their reopening, including: the development of educational content for radio and TV for students in nursery, primary and secondary schools; the distribution of pedagogical materials such as textbooks and curricular guides for teachers; water supply improvement solutions including the installation of water pumps and storage tanks; and debt relief for public university students. 

Beneficiaries will include: 56,000 beneficiaries of the Old Age Pension Service; 9,000 beneficiaries of the Public Assistance; 15,000 beneficiaries of electricity bill credits; 350 women victims of violence; 146,000 students that will receive education delivered through TV and radio; 35,000 students, who will receive textbooks and worksheets; and 1,765 beneficiaries of student loan relief. 

The $30.4 million loan will be executed during a two-year period. The $21.8 million corresponding to Flexible Financing Facility will have an amortization period of 25 years and an interest rate based on LIBOR, while the concessional OC will have an amortization period of 40 years and 0.25% interest rate. 

About the IDB 

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. 

Contacts

Bachelet,Pablo A.

Press Coordinator

pbachelet@iadb.org
Bachelet,Pablo A.
External Contacts

Andrea Ortega

Andrea Ortega
Additional Contacts

Stampini,Marco

Stampini,Marco

Thompson,Jennelle

Thompson,Jennelle
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