Govt. to raise the ceiling of general public debt
– domestic by 233.3%, external by 65%

Senior Minister with responsibility for Finance, Ashni Singh.
Kaieteur News – The People’s Progressive Party / Civic Government has introduced two Orders in the National Assembly in a bid to raise the country’s debt ceiling. The Senior Minister in the Office of the President (OP) with responsibility for Finance, Ashni Singh, who introduced both Orders in a parliamentary proceeding yesterday.
The Orders proposed increasing the domestic debt ceiling to $ 500 billion, almost three decades after the last review up to $ 150 billion in 1994. In addition, a new external borrowing ceiling of $ 650 billion was proposed, three decades after its last increased to $ 400 billion. Both of these increases reflect increases of 233.3% and 65%, respectively.
According to a statement from the Ministry of Finance (MoF), the move to increase the domestic debt ceiling was influenced by several factors, one of which, he says, is the existence of a large Consolidated Fund overdraft in Guyana Bank, accumulated over the past five. years.
The Government is now seeking to rectify this situation by issuing appropriate instruments. However, if the overdraft were addressed under the current ceiling for domestic debt, a cut would result, the statement said.
He went on to say that the government would require the issuance of new domestic instruments, in the future, to fund various policy initiatives, and stimulate the development of the domestic financial market.
“In the meantime, he added, the move to increase the external debt ceiling is to provide for the current level of contracted external debt, along with new borrowing envisaged to fund the government’s development agenda.”
“Importantly, these reforms to the external and domestic debt ceilings do not threaten Guyana’s long-term debt sustainability, given the significant economic progress made since the early to mid-1990s, when the ceilings were last reviewed, and a sound economic outlook. the country, ”said the MoF.
At the time of the last reform in 1991, the Ministry said, Guyana’s external debt ceiling was set at more than 1,000% of GDP. In contrast, the proposed new external debt ceiling would equate to less than 60 percent of GDP, using the latest GDP 2020 estimates.
“On the domestic side, when it was last revised in 1994, Guyana’s domestic debt ceiling was set at almost 200 per cent of GDP. In sharp contrast, the revised domestic debt ceiling would equate to less than 50 percent of GDP. The above comparisons clearly show that Guyana’s existing debt carrying capacity could provide for the planned ceiling increases safely, ”the Ministry concluded.