IMF assisting Guyana in development of oil industry

DPI, GUYANA, Saturday, July 22, 2017

The International Monetary Fund (IMF) is currently in Guyana providing technical assistance to the government for the development of the oil and gas industry.

Minister of State Joseph Harmon at Thursday’s post Cabinet press briefing said the IMF is working with the Ministry of Finance and will help to build capacity to manage anticipated revenues generated from the industry.

Minister Harmon explained that Guyana is now eligible for IMF assistance under a donor funded trust fund. The IMF team will conduct a scoping assessment of the government’s policy direction and meet relevant stakeholders involved in the management of oil revenues.

“That assessment will enable the IMF to determine the areas in which assistance could be provided,” Minister Harmon said.

The IMF has also had an input in the draft legislation that will see the establishment of a Sovereign Wealth Fund. The Fund, is being drafted to ensure that its elements are compatible with Guyana’s developmental objectives, Minister of Finance, Winston Jordan had said at an oil and gas seminar last month.

When the draft legislation is completed, the Ministry will conduct consultations before it is taken to the National Assembly for passage.

The Sovereign Wealth Fund will safeguard against the resource curse, improve future generational wealth, achieve fiscal sustainability and to increase the country’s national savings.

By: Tiffny Rhodius