Former Parliamentarian Roysdale Forde S.C., has expressed concern over the People’s Progressive Party/Civic (PPP/C), accusing the government of driving the country into significant debt despite the economic boost from rising oil revenues.
In a detailed column, Forde outlined what he described as the PPP/C’s “borrowing orgy” since returning to office in August 2020, arguing that the current administration has treated international lenders “like an open bar” and is squandering a historic opportunity to fund national development without mortgaging the future.
PPP/C’s Borrowing Binge
Forde traced the explosion of debt through a catalogue of loans and debt-ceiling increases, beginning with a series of World Bank agreements:
COVID-19 Emergency Response Project (2020–2023): US$7.5 million initially, with a US$6 million top-up in June 2021. The project was restructured in May 2023 and is now extended to March 2024.
Secondary Education Improvement Project (January 2021): US$13.5 million to expand math education, build schools, and implement “smart classrooms.”
Strengthening Human Capital through Education Project (June 2022): US$44 million aimed at technical and vocational education linked to oil, agriculture, and IT sectors.
Petroleum Resources Governance and Management Project: Continuation of funding to the Environmental Protection Agency and the Guyana Extractive Industries Transparency Initiative (GEITI), with limited post-2020 disclosures.
Flood Risk Management Project: Additional loans to improve drainage and reduce flooding in East Demerara—again, with no post-2020 specifics.
Forde also flagged growing obligations to the Inter-American Development Bank (IDB), which held 46.7% of Guyana’s external debt by mid-2022. While the government has not detailed specific new IDB loans since 2020, Forde asserts that IDB money is embedded in the PPP/C’s infrastructure, energy, and social development programmes.
China’s Export-Import Bank, the country’s top bilateral creditor, held 16.2% of Guyana’s external debt as of mid-2022. Forde said these funds are likely underwriting large infrastructure projects but noted that “the lack of clear post-2020 details smells of opacity—a hallmark of PPP/C governance.”
Skyrocketing Debt Ceilings
Forde documented a rapid expansion of Guyana’s borrowing limits under the PPP/C:
In 2021, the external debt ceiling doubled from G$400 billion to G$800 billion, while the domestic ceiling quintupled from G$100 billion to G$500 billion.
In 2023, the limits were increased again to G$900 billion (external) and G$750 billion (domestic).
In 2024, both ceilings jumped to G$1.5 trillion each, representing a combined G$1.35 trillion expansion in borrowing authority.
Other fiscal manoeuvres flagged by Forde include:
Central Bank Overdraft Securitisation (June 2021): The government converted a G$200 billion (US$960 million) overdraft into variable-rate debentures with 1- to 20-year maturities.
NICIL Loan (December 2020): A G$16.5 billion syndicated loan, amounting to 2.1% of GDP, was reclassified as domestic debt to bail out the Guyana Sugar Corporation (GuySuCo).
“Why Borrow in an Oil Boom?”
Guyana’s economic transformation since the 2015 oil discovery is indisputable, with oil production reaching 278,000 barrels per day by 2022 and GDP per capita (PPP) soaring to $80,137 in 2024. The 2024 national budget includes a G$1 billion withdrawal from the Natural Resource Fund (NRF)—yet Forde questioned why borrowing has become so aggressive.
“The PPP/C’s addiction to borrowing risks turning Guyana’s golden era into a fiscal nightmare,” he said.
Forde noted that 40% of the 2024 national budget—G$1.146 trillion—is funded by loans, warning that this leaves every household with an unsustainable and growing debt burden.
He argued that development should be financed through oil revenues rather than piling on debt, saying the government’s rationale—that the loans are needed for transformative projects—rings hollow amid opaque procurement practices and a lack of oversight.
Looming Consequences
Forde outlined several risks stemming from the government’s “fiscal recklessness”:
Debt Sustainability Crisis: Public-sector debt had dropped from 49.5% of GDP in 2012 to 26% in 2022, but this is now threatened by successive hikes to the borrowing limits. The IMF’s 2023 Debt Sustainability Analysis classifies Guyana’s risk of debt distress as “moderate,” but this is contingent on uninterrupted oil production and prudent management.
Crowding Out Private Sector: Large domestic borrowing—like the Central Bank and NICIL deals—could restrict credit availability and push up interest rates, hampering private investment and job creation.
Currency and Inflation Risks: An overheated economy awash in borrowed and oil-fueled liquidity could trigger inflation or real exchange rate instability. Guyana’s dollar lost 17.6% of its value from 1998 to 2000 under similar pressures.
Transparency Deficit: Forde accused the PPP/C of obscuring how loan funds are used. “Without ironclad oversight, borrowed billions vanish into mismanagement, eroding public trust,” he said.
Intergenerational Theft: Long-term debt arrangements—some up to 40 years—mean future governments will be repaying loans long after oil reserves may be depleted.
Call to Action
Forde concluded with an appeal to the electorate ahead of the September 1 General and Regional Elections.
“I urge all Guyanese to unite and vote the PPP/C out of office. Let us take back our nation from the unsteady hands of that PPP/C group disguised as a government; let us make the change.”
He warned that unless fiscal discipline and responsible governance are restored, the country’s oil bonanza could become a lost opportunity—leaving future generations to pay the price for today’s short-sighted spending spree.
