Dutch govt cancels US$4.7M Guyana debt
Stabroek News
July 8, 2004
The Netherlands government has confirmed to the Guyana government that it has cancelled US$4, 732, 227 ($938.2M), representing all commercial debt owed under the Bilateral Rescheduling Agreements concluded in 1997 and 2000.
The Dutch debt relief is in line with the Enhanced Heavily Indebted Poor Countries (E-HIPC) initiative which Guyana recently reached the completion point for.
This relief brings the total debt reduction provided by the Dutch government to just over US$15.5 million or $3.87 billion since the first debt stock reduction in May 1996, according to a press release yesterday from the Ministry of Finance.
The confirmation last month of the recent debt reduction formalises the commitment to forgive 100% of all loans owed to, guaranteed by, or insured by the Netherlands government through December 1, 2003. These loans, the release said further, include US$4,732,227.14 or $938.2 M held by the Dutch credit insurance company, Atradius Dutch State Business.
And in a letter dated June 30, 2004, Finance Minister Saisnarine Kowlessar conveyed his gratitude and deep appreciation on behalf of the Guyana government to the Dutch Minister of Finance Gerrit Zalm. Kowlessar is quoted as stating in the letter that "the Government of the Netherlands has been at the forefront of the international movement towards writing-off the debts of the countries under the HIPC (Heavily Indebted Poor Countries) initiative."
He mentioned too that the exceptional debt relief from the Netherlands government will go a far way in helping this government to improve its delivery of social services and to fight poverty, and to consolidate the gains made so far towards achieving the PRSP (Poverty Reduction Strategy Paper) and Millennium Development Goals, thus keeping Guyana on a path of sustainable development.