External debt stock is projected to increase by 3.9% to US$1.4B at the end of 2021.

Guyana’s outstanding stock of external debt grew by 2.6% to US$1.35 billion from the end-December 2020 level.

This is according to Bank of Guyana’s (BoG) latest report on the nation’s economic performance at half year. The Central Bank said that the increase resulted mainly from higher multilateral debt owed to the Inter-American Development Bank (IADB) and the International Development Association (IDA).

The BoG also noted that obligations to the IADB and IDA rose by 8.5% and 3.7% to US$599 million and US$94 million, respectively, from end-December 2020. Total bilateral obligations, which accounted for 33.5% of total external debt, amounted to US$453 million, 2.1% lower than the end-December 2020 level.

Debt obligations to commercial banks amounted to US$16 million, down from US$17 million, at the end-December 2020. Obligations to multilateral creditors which accounted for 64.2% of total external public debt, increased by 2.6% to US$870 million. The external debt stock is projected to increase by 3.9% to US$1.4B at the end of 2021.

Debts to CDB, Venezuela and Kuwait

With respect to obligations to the Caribbean Development Bank (CDB), the BoG said this declined by 2.6 percent to US$146 million from US$149 million at end-2020. Further, it was noted that total bilateral obligations, which accounted for 33.5 percent of total external debt, amounted to US$453 million, 2.1 percent lower than the end-December 2020 level.

According to the BoG, this outcome was on account of lower disbursements from bilateral creditors during the first half of 2021. Additionally, it was stated that debt obligations to the Exim Bank of China, which accounts for 53.3 percent of bilateral debt and 17.8 percent of total external debt, declined by 1.8 percent to US$242 million.

This outcome reflected lower disbursements from China, coupled with higher debt servicing during the review period. As for debt obligations to Venezuela and Kuwait, this declined by 2.8 percent and 8.8 percent to US$102 million and US$21 million, respectively.

In the case of Venezuela, the Guyanese Central Bank reported that payments were placed in an account but not disbursed due to sanctions.