As Guyana awaits the World Bank’s determination on a US$5 million request to fight the novel coronavirus disease (COVID-19), the global financial body yesterday did not indicate if it was anywhere closer to processing that loan as it said that it continues to assess the situation here.
“The World Bank is working with countries around the Caribbean, and across the world, to assess the impact of the pandemic and the needs due to the COVID-19 situation. We maintain a dialogue on this issue with countries and development partners for a coordinated engagement,” the World Bank said in a statement, following questions posed by Stabroek News.
It added that it was maintaining a similar process in Guyana while continuing to assess the situation in the country.
Last month, Minister of Finance Winston Jordan had announced that this country had sought a US$5 million loan from the World Bank to implement measures for tackling the virus, which has already had a devastating global impact and continues to spread.
The Ministry of Finance has expressed optimism that the request will be approved and had said that it was still being processed.
In February, the World Bank Group announced that it would make available some US$14 billion in financing to developing countries to help them respond and thus lessen the impact of the virus that is devastating even developed countries globally.
“The World Bank Group’s package of immediate support will fast track US$14 billion in financing, complemented by policy advice and technical assistance, to help developing countries cope with the health and economic impacts of the COVID-19 pandemic. Through this new fast track package, the World Bank Group will help developing countries strengthen health systems, disease surveillance, and public health interventions, and work with the private sector to reduce the impact on economies,” it said on its website, while noting that it will be globally coordinating to support country-based responses.
“The COVID-19 support package will make available $14 billion in new financing, on a fast-track basis: $2.7 billion from IBRD, $1.3 billion from IDA, $8 billion from IFC (including $2 billion from existing trade facilities), complemented by reprioritization of $2 billion of the Bank Group’s existing portfolio. It will also include policy advice and technical assistance drawing on global expertise and country-level knowledge,” it adds.
To date, countries in Latin America benefitting from the fast track facility include Argentina, Ecuador, El Salvador, Haiti, Honduras and Paraguay, while those in the same jurisdiction benefitting from other forms of finance/redeploying of existing projects are Bolivia, Colombia, the Dominican Republic Honduras and Saint Vincent and the Grenadines.
A number of other countries have also garnered COVID-19 aid from the International Monetary Fund.
The Government last week rejected a suggestion by Prime Minister Moses Nagamootoo that Guyana’s current political crisis is impacting its ability to access international funding to respond to the novel coronavirus disease (COVID-19) pandemic.
Nagamootoo had told reporters last Thursday, “I believe that because of the political situation in Guyana while we are in transition to a government that will emerge after [the] March 2nd 2020 elections that we cannot for sure say whether some of these international multilateral lending agencies are going to be dealing with Guyana’s applications any time soon. They probably would want to sit it out and wait until the President is sworn in.”
Calling the suggestion “inaccurate,” the Ministry of the Presidency said last Saturday that Guyana remains engaged with several of its partners and it pointed out that only last Thursday the United States of America announced that financial aid to the tune of US$475,000 would be provided to help address Guyana’s priority areas in its fight against COVID-19. “The Ministry wishes to make it clear that no international or financial institution has linked support to the Guyana’s national COVID-19 campaign to the outcome of the March 2, 2020 General and Regional Elections,” it said. “No international financial institution has indicated that financial aid has been made conditional upon the completion of the electoral process,” it further added.
Nagamootoo had also said that in the absence of a budget and additional international funding, government was “reconfiguring” projects to be COVID-19 related.
“We have an ongoing relationship with the [Inter-American Development Bank] for a number of projects which will be reconfigured to be COVID-19 related projects,” he explained, before adding that government was also hoping “for short term use” to tap into funding from the International Fund for Agricultural Development (IFAD). He said other assistance had been received from the United States Government and the Indian Government which has offered “the low hanging fruit” of US$1 million for COVID-19 related assistance. China, he added, would be providing necessary equipment.
