Gov’t reverses $135B overdraft, despite challenges

His Excellency Dr Irfaan Ali delivering his feature address at the Georgetown Chamber of Commerce’s 133rd Annual Awards Presentation and Gala Dinner (Photo: OP)

The Government has managed to reverse the $135B incurred at the end of 2020, despite challenges to traditional sectors and the global economy over the past two years.

At the end of 2020, the Government inherited an overdraft of 135 billion dollars from the central bank. This occurred due to numerous withdrawals where the consolidated fund did not have enough funds to cover the transaction but the Bank of Guyana still paid the funds.

President Irfaan Ali says the Government has already managed to repay this despite numerous challenges in the global economy.

“Notwithstanding a global environment in which we are importing inflation, a global environment in which the cost of shipping went up by more than 1000% percent, a global environment in which there is a great shortage of nurses, a global environment that had to overcome in these same two years one of the worst pandemics ever […] we have reversed the 135 billion dollars’ overdraft that was recorded at the end of 2020.”

The overdraft was resolved by repaying the Bank of Guyana’s funds in excess of 180 billion dollars.

He made this disclosure while addressing attendees at the Georgetown Chamber of Commerce and Industry (GCCI)’s 133rd Annual Awards Presentation and Gala Dinner, at the Marriott Hotel.

The Head of State further noted that Guyana’s traditional sector took a significant blow over recent years.

“From 2020 to 2022; we had varied weather patterns. Mostly rain and lots of flooding. This has taken a toll on the traditional sector; whether rice, sugar, or agriculture as a whole.”

President Ali was able to boast of Guyana’s response to economic challenges, noting that numerous removals of taxes have saved each household approximately $180,000.

He also said the Government was able to increase its capital expenditure by 108 percent but its current expenditure by only 11 percent.

This means that despite the country’s spending on massive transformational projects more than doubling, the Government was able to limit the amount of money spent to keep these projects going.

The money earned from significant oil revenues has also played a big role in the countries’ financial stability.