Guyana gets $19.8B in Budget Support from EU

The European Union (EU) has injected $19.8 billion into the Guyana economy, under its Budget Support Programme for inclusive and sustainable development of the country.

EU Ambassador to Guyana Mr. Fernando Ponz Canto made the official announcement today during a joint press conference with His Excellency Dr. Mohamed Irfaan Ali. 

The sum, which will be disbursed into the Consolidated Fund under Sectoral Budget Support, will go towards the country’s Integrated Coastal Zone Management Programme.

Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh said he was pleased that Guyana was able to reach eligibility for the funding for this fiscal year. 

Dr Singh said Budget Support is an instrument of development provided by the EU to countries that have reached some prerequisites in relation to good governance, macroeconomic stability, fiscal oversight and good and strong public financial management.  

“I recall the hard work that we had to do the last time we were in Government to make Guyana eligible for Budget Support for the first time. We had set about the task of ensuring Guyana became eligible to ensure we had all the prerequisites in place. We performed very well,” Dr. Singh said. 

He said it was “extremely unfortunate” that developments which unfolded in Guyana following the December 2018 Confidence vote, along with the absence of parliamentary oversight stalled the EU budget support.

Ambassador Canto said the EU remains a friend of Guyana and wishes to see Guyanese growing together. He is confident that Guyana would use the money to continue the progress of its people “in the spirit of reconciliation, inclusiveness and improving daily lives for all.”

Ambassador Canto said the EU stands in solidarity with Guyana.

“We always want to support. I trust that this contribution will help Guyana to address the challenges it faces but most of all, make the best of the opportunities it has and its many challenges which include Government reforms, institutional reform, electoral reform, the fight against crime and organised crime and corruption.”

In a press release issued earlier today, the EU stated that Budget Support is proof of trust and of a true partnership as the funds are channelled through the national treasury and implemented by the Government of Guyana, under agreed indicators. 

The overall amount of the EU budget support for the Integrated Coastal Management (2017-2021) is GY$74. 5 billion. This latest payment brings the total grant funds released since 2017 to GY$51. 6 billion. 

The EU described the Budget Support as a tool of delivering effective aid and durable results in support of EU partners’ reform efforts and the sustainable development goals.

It involves:

• dialogue with a partner country to agree on reforms or development results which Budget Support can contribute to.
• an assessment of progress achieved.
• financial transfers to the treasury account of the partner country once those results have been achieved.
• capacity development support Budget Support is a contract based on a partnership with mutual accountability.