GuySuCo to receive financial assistance soon – NICIL CEO
DPI, Guyana, Friday, June 26, 2020
Chief Executive Officer (CEO) of the National Industrial and Commercial Investments Limited (NICIL), Colvin Heath-London has disclosed that the Guyana Sugar Corporation (GuySuCo) will be receiving financial assistance soon.
Earlier in May, GuySuCo’s Chairman John Dow had written to His Excellency President David Granger concerning the sugar company’s current financial issues.
However, it was conveyed that the “prevailing national circumstances, coupled with the challenges of COVID 19 and a reduced national income, rendered the Treasury incapable of providing a bailout to GuySuCo.”
Responding to the company’s request for assistance, the Ministry of Finance reminded of a $30 Billion bond that was backed by NICIL’s assets and guaranteed by the Government of Guyana was secured through NICIL to retrofit and revitalise the 3 remaining sugar estates.
During the period July 2018 to February 2020, over $9 billion was disbursed to GuySuCo to fund its Capital and Operational Expenditure – much of which was outside the terms of the bond.
It was disclosed that NICIL through the Special Purpose Unit (SPU), sold lands that were vested to it and garnered deposits of $2.1 billion.
The full sum was used to offset bond payments that became due in May 2020. The balance of $1.5 billion for the lands will be paid over to NICIL when the vesting orders are signed and gazetted.
CEO Heath-London said the money should be handed over by this week from which GuySuCo will benefit.