Canada’s Minister of International Development, the Honourable Ahmed Hussen and Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, last Sunday announced a historic CAD$120 million sovereign loan agreement to support social services in Guyana. The loan is part of a co-financed initiative with the Inter-American Development Bank (IDB) which is providing US$30 million.
The small ceremony at the official residence of the High Commissioner of Canada to Guyana was conducted in the presence of High Commissioner of Canada to Guyana, Mark Berman, Canada’s Assistant Deputy Minister (ADM) for the Americas, Glen Linder, General Manager, IDB Caribbean Country Department, Anton Edwards, IDB Country Representative, Lorena Solórzano Salazar, and other senior officials of the Governments of Canada and Guyana.
The loan will be utilised to improve social protection and public assistance under the Ministry of Human Services and Social Security (MHSSS). This includes support for people living with disabilities through increasing access to the Public Assistance Programme and by supporting the implementation of the Learning Lab, which will deliver skills training courses. Additionally, the loan will support gender empowerment by providing services for victims of gender-based violence (GBV), economic empowerment of women, and support victims of trafficking-in-persons (TIP). The loan initiative will also improve the efficiency of the social safety nets by supporting a strategy for the digital transformation of the MHSSS.
The CAD$120 million loan, over a 10-year period will be disbursed in two tranches of CAD $81M and CAD $39M respectively. The loan will include a climate-resilient debt clause, which will automatically pause debt service payments if Guyana experiences a climate incident, natural disaster, pandemic or epidemic. A Technical Assistance Facility of an additional CAD$4.5 million will also accompany the sovereign loan to support implementation of activities.
Canada’s Sovereign Loans Programme (SLP) provides loans on concessional terms to eligible countries, tailored to their needs and priorities as they relate to poverty reduction and peace and security. The SLP improves the breadth of support Canada can deploy and aligns Canadian international assistance with other leading donors.
High Commissioner Berman, in his opening remarks, stated that the signing was the culmination of a process that began back in March 2022, and one that involved hard work by the technical teams from the Government of Canada, the Government of Guyana and the IDB, who he thanked individually for their dedication and commitment.
Minister Hussen, in his remarks, stated that Canada’s goal is to help Guyana generate beneficial social, economic, and environmental outcomes, for the good of all its citizens, through a loan that is tailored to the country’s own needs. He added that the loan will contribute towards attainment of the Sustainable Development Goals and aligns with Canada’s Feminist International Assistance Policy by ensuring that marginalized people have equal access to resources and opportunities for a better future. He highlighted that the loan is not just about financial assistance but also about fostering collaboration between the two countries and helping to build institutional capacity to allow Guyana to reach its full potential.
During his remarks, Minister Singh, thanked Canada for its support to Guyana, noting that the close and friendly relationship existing between the two countries is now entering a new phase rooted in economic and commercial ties and opportunities far beyond those that existed previously. As such, he indicated that the signing ceremony represents yet another instalment of the longstanding and special relationship between Canada and Guyana. He further added that Guyana is extremely proud to be the second country in the world and the first in the Western Hemisphere to have concluded a sovereign loan under the Sovereign Loans Programme with Canada. Dr. Singh then expressed the Guyana Government’s appreciation to Canada, while also acknowledging the role played by the Inter-American Development Bank in intermediating the proceeds of the loan through an innovative partnership involving the Bank, Canada, and Guyana.
