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FM
Former Member

Guyana borrow small and got to pay big

Apr 02, 2019 Dem Boys Seh, Features / Columnists, Kaieteur News, https://www.kaieteurnewsonline...-and-got-to-pay-big/

Everybody does borrow. In fact, de banks does encourage people to borrow. Some of dem banks does tell people not to use dem own money.

“Why use your money when you can use ours?” Dat is a question dem bank does ask people.

Dem boys know one thing. When something sound nice, it got teeth. Kuwait lend Guyana US$10 million way back in 1977. Dem was de days when Guyana did promise to raise de public servants pay but didn’t have money.

It easy to borrow but it hard to pay back. Even to dis day people does come to you to borrow money and promise to pay back in a week. De week does come and gone and dem don’t even talk to you. When dem see you, dem does hide and you don’t ever get pay.

Dem boys does seh dat is de easiest way to get rid of people who think dem smart but dem have people who does be bare face and come to borrow again.

Guyana didn’t pay back one cent to Kuwait. If it think Kuwait woulda forget because it got oil, dem mek a big mistake. Every year Kuwait put interest pon de loan. Imagine by dis year, dat same US$10 million tun US$77 million.

When Guyana borrow de money, de exchange rate was li’l more than $2 to one US dollar. Today is more than $200 to de US dollar. Guyana got to pay through its nose.

Dem boys seh when you see people money and you think you smart dat is how you does end up in trouble. Dat does happen to some li’l gyal and Guyana end up like dem li’l gyal. De only thing is dat it didn’t have to give nutten.

Jagdeo didn’t pay de loan because he she, he didn’t borrow no money. Was Burnham, and Kuwait must go to Burnham fuh de money. Indeed Burnham dead and gone but he borrow and is we children and grandchildren who got to pay it back.

Kuwait not bad-minded. It tell Guyana to keep US$50 million of de US$77 million dat it owe. But even then, Guyana borrow US$10 million and got to pay back US$27 million and it better pay de money because there will be gnashing of teeth.

Talk half and what sweet in you mouth does be bitter elsewhere.

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Guyana still owes Kuwait US$27M despite US$50M write-off on US$10M loan

Apr 02, 2019 News, https://www.kaieteurnewsonline...e-off-on-us10m-loan/

In 1975, Guyana took a loan from the State of Kuwait, through the Kuwait Investment Authority for US$10.3M. At the end of 2017, non-payments saw that US$10.3M rise to a massive US$77.5M, a significant sum for Guyana.

Yesterday, the Ministry of Finance said it has managed to get Kuwait to write off US$50M.

According to the Ministry of Finance, a Bilateral Debt Settlement Agreement was signed by Minister Winston Jordan on March 18, 2019, with the State of Kuwait, through the Kuwait Investment Authority, to cancel US$50,739,255.67 of Guyana’s debt to that country.

“This debt cancellation will reduce Guyana’s external debt and allow the country to expand its development agenda, as funds saved under this agreement would be allocated to social projects within the context of the National Budget,” according to the Ministry of Finance.

The agreement, which came after a tough negotiation process, paves the way for greater co-operation and the strengthening of cordial ties between the two countries, it was stressed.

Commenting on the agreement, Minister Jordan said that it is the result of renewed efforts by his Ministry to engage Guyana’s non-Paris Club bilateral creditors in negotiating debt relief that is acceptable and sustainable.

The remaining amount of US$26,853,585.23 will be settled through a combination of cash payments, to be made over nine years, and a debt swap arrangement, which will be worked out in due course.

Guyana’s debt to Kuwait originated from a Loan Deposit, contracted in 1975, from the Central Bank of Kuwait for Kuwaiti Dinars 3.0 million (US$10.3 million at that time), for balance of payments support to the Bank of Guyana.

The debt accumulated massive arrears over the past four decades, at high market interest rates, the Ministry said.

As at December 31, 2017, the debt to Kuwait had grown to US$77,592,840.90, comprising principal arrears of US$9,940,500 and interest arrears of US$67,652,340.90.

FM

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