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Guyana signs multi-billion US dollar agreement with EXIM Bank

The United States Wednesday signaled its “serious” intention in helping Caribbean Community (CARICOM) countries access financing for developmental projects after it signed a two billion US dollar agreement with Guyana.

“One of the in factors has always been the ease of access to financing and the barriers to financing. This today is the single most important signal not only for Guyana but for the region. The United States, through one of its agencies- the EXIM Bank– is serious about the commitment and promise to this region, the CARICOM region,” Guyana’s President Dr. Irfaan Ali said at the signing ceremony.

“In this development phase of our country we want to see greater US participation not only from the government but from the private sector,” he said at the ceremony with the United States Export-Import (EXIM) Bank for government projects as both countries committed themselves to working together to ensure shared prosperity, inclusive growth and transparency and accountability

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Traditionally, Guyana has been obtaining concessional bilateral financing from India and China’s EXIM Banks and more recently from the Islamic Development Bank. Guyana also recently made a pitch to a Saudi Arabia investment delegation and has decided to establish a Saudi Arabia desk at the Ministry of Finance.

Ali said the way is now clear for the private sectors of the two countries to move forward “aggressively” and make full use of that opportunity.

Under the agreement, the parties agreed to explore options for utilizing EXIM’s standard instruments, which include direct loans and medium- and long-term guarantees, to finance US exports to Guyana for government projects totaling two billion US dollars.

“I think we can applaud ourselves and EXIM Bank for this dynamic, futuristic, and bold move in advancing this relationship and this cause, and the areas we have identified shows the broad and multifaceted nature of the leadership of EXIM Bank.”

Government said the memorandum of understanding also identifies a number of indicative sectors in which projects may be identified. These include but are not limited to infrastructure, including roads and bridges; energy, including renewable energy and emission reduction; telecommunications, including wireless technologies; water treatment and sanitation, including technologies and infrastructure, and agriculture.

“This is what we’re talking about, not a simple MoU, but an MoU that has the potential of unlocking all of this. The focus on energy, renewable energy, allows us to advance on the path of goals and targets we set at COP26 and beyond. It shows our commitment on cleaner energy, advancing sustainable and resilient development,” Ali said, committing to working “aggressively” and “proactively” in pursuit of the full realization of the memorandum of understating while ensuring that all parties emerge as “winners.”

President Ali also extended an invitation to the EXIM Bank senior officials, including its president and chair, Reta Jo Lewis to visit Guyana with the US private sector to meet with the local stakeholders in solidifying the projects.

CMC/

 

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