Press Statement on Guysuco’s request for government bailout
Georgetown, June 10, 2020 – The Ministry of Finance notes the Guyana Sugar Corporation’s (GuySuCo) request to the Government for a bailout and wishes to assure that it is actively seeking to assist GuySuCo to access funds that are available to it, to mitigate its present challenges.
Notwithstanding, however, the prevailing national circumstances, coupled with the challenges of COVID 19 and a reduced national income, render the Treasury incapable of providing a bailout to GuySuCo.
In this regard, we wish to remind that a $30 Billion bond backed by National Industrial and Commercial Investments Limited’s (NICIL) 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, $9,720,759,568 was disbursed to GuySuCo to fund its Capital and Operational Expenditure – much of which was outside the terms of the bond.
Additionally, 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. It is expected that part of this sum will go towards a bond repayment which is due on July 4th, 2020, and the remainder to GuySuCo. GuySuCo also generates its own income.
Another disbursement is expected in the coming days; so, we urge that NICIL, GuySuCo and the syndicated lenders work assiduously to resolve any bottlenecks.
The Government of the Cooperative Republic of Guyana remains committed to making GuySuCo a viable partner.