Guyana’s efforts to mitigate the impact of COVID-19 have been boosted by a US$22 million loan approved by the Inter-American Development Bank (IDB) for the purchase of medical equipment and personal protective equipment for frontline workers among other things. A release from the IDB on Monday explained that the sum which was released under the Contingent Credit Facility for Natural Disaster and Public Health Emergencies will be used to finance public expenditures necessary to contain transmission of the disease and mitigate further health and economic consequences.
Specifically the loan is earmarked for the purchase of medical equipment, laboratory equipment and inputs, ambulances, and personal protective equipment for health workers, surveillance officers, border personnel.
“Given the ongoing global health crisis and its impacts, the government is facing the challenge of strengthening the country’s health system, while also confronting the financial and liquidity constraints that limit its capacity to continue investing in closing the gaps and building preparedness and response capacity,” the release explained, adding that the loan will provide efficient financial coverage to support, in a timely manner, the implementation of Guyana’s strategic response plan to COVID-19.
The bank stressed that the increasing cases of COVID-19 has made it critical that government has the necessary funding to quickly implement all measures required to control the ongoing emergency and save people’s lives.
There are currently 803 active cases in the country, 60 of which are currently in institutional isolation while some 743 are on home isolation. The total number of cases recorded since March is 4,530.
The release further explained that US$15.4 million of the US$22 million total is charged to the regular ordinary capital of the IDB, with a repayment term of 25 years, a grace period of 5.5 years and an interest rate based on the London Inter-Bank Offered Rate (LIBOR). A total of US$6.6 million is charged to concessional ordinary capital, with a repayment and grace term of 40 years and an interest rate of 0.25 percent.
