AFC will not be supportive of Government’s move to increase the external loan ceiling for Guyana – 21st Jun 2013
In 1973, the External Loans Act was passed for the purpose of waiving loans outside of Guyana for the purpose of financing the general development of the country. That ceiling was $500 million and increased in 1991 to $400 billion.
According to the party Chairman Nigel Hughes, the AFC will not support the motion until the Inter-American Development Bank (IDB) approves the project. The Government is expected to present a parliamentary motion to the National Assembly to extend the ceiling by over 244 billion Guyana Dollars.
Hughes also said that another concern is that the Guyana Power and Light Company’s reliance on Government’s guarantee under the Power Purchase Agreement to be entered with Amaila Falls Hydro Inc.
However, the AFC is also concerned that this motion is transferring the risk from investors to the Government.
Hughes explained that if GPL does not perform under this agreement, the Government would assume the risk.
He said this scenario being presented is similar to the Marriott Hotel project where investors are absolutely protected.