European Commission applauds Guyana on key achievements

Guyana Chronicle
February 11, 2000

THE European Commission has applauded Guyana for its "important achievements" in restructuring and stabilising the economy so that it could benefit from debt reduction schemes.

As a result of the strides, the Commission yesterday formally presented a grant of 6.44 million Euros to Guyana for debt relief within the framework of the Highly Indebted Poor Countries (HIPC) Initiative.

The grant will allow much needed resources to be diverted to fund poverty reduction and developmental projects.

"Thanks to its important achievements over the past years to restructure and stabilise its economy, Guyana is the second country to reach its completion point and, as such, the second one to benefit from this kind of Community support," Mr Poul Nielson, Member of the European Commission in Brussels told President Bharrat Jagdeo in a letter.

The President, who yesterday accepted the European grant from Mr Vincent De Visscher, Head of the European Union (EU) Delegation here, expressed appreciation for the assistance. The presentation took place at his Georgetown office.

In the letter to President Jagdeo, Nielson explained that the grant is to be used for the advance repayment on a net present value basis on all Guyana's obligations to the Community related to several special loans and to the partial advance repayment of those related to another loan.

The EU has also promised further debt relief support as soon as Guyana gets an enhanced debt reduction framework under HIPC `II', Nielson said.

"I am confident that your country will continue on its adjustment path and that this Community action will contribute to ensuring that this path will remain sustainable," he added.