Guyana will strengthen its public policy and fiscal management response to the COVID-19 health and economic crisis with a US$34m 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$10.2m 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$23.8m will come from the Bank’s Flexible Lending Facility, with a 20-year maturity period, a grace period of 5 1/2 years and an interest rate based on LIBOR.