Minister of Finance of Guyana Dr Ashni Singh and Ambassador of the Russian Federation to Guyana Nikolay Smirnov yesterday formalised the cancellation of Guyana’s US$277,490.24 (equivalent to G$56.7 million) debt to Russia. The Government Information Agency (GINA) reported that Singh and Smirnov exchanged official documents that conclude and bring into force the agreement yesterday. The agreement puts into effect the decision taken by the Russian Federation in December 2006 to go beyond the Paris Club Initiative and write-off 100% of the debt of those countries who had reached completion point under the Enhanced Heavily Indebted Poor Countries Initiative by December 31, 2006, including Guyana, GINA further said.
It noted that the cancelled debt originated from two loans contracted on October 23, 1984 and December 24, 1984 between the former Guyana National Cooperative Bank (GNCB) on behalf of the Government of Guyana and “AVIAEXPORT” (a Russian Foreign Trade Agency) for an amount totalling US$9,409,044.71 to purchase two military helicopters for the Guyana Defence Force (GDF).
The Russian Federation had previously provided debt relief to Guyana on December 22, 2004 by writing-off 98.32% of the US$16,573,498.37 that was outstanding at that time. The current write-off covers the remaining balance of US$277,939.31, it added.
According to GINA, the agreement was signed by the two governments with a view to developing cooperation, strengthening the cordial friendship between the two countries and striving together to attain the Millennium Development Goals as stipulated in the United Nations Millennium Declaration of September 8, 2000. The funds are to be used to assist Guyana in financing projects in the areas of poverty reduction, environmental protection as well as economic development. On behalf of the government and people of Guyana, Dr. Singh expressed his gratitude and deep appreciation to Ambassador Smirnov and the government and people of the Russian Federation for their generosity and support to the people Guyana throughout the years, GINA noted.
