Guyana Rising!

Something significant happened this month, and outside of the country in question it happened very quietly. Guyana was removed from the list of “highly indebted poor countries” by the IDB:

Guyana is no longer a Highly Indebted Poor Country, following a just concluded initiative between government and the Inter-American Development Bank (IDB).

 

According to an IDB press release, in 2007, Guyana will save about US$9M in IDB debt service, rising to over $22 million per annum by 2013. “These amounts will be available for the country to use in concordance with national priorities in order to achieve the Millennium Development Goals,” the IDB said.

 

 Now I’ve often thought that a country with Guyana’s natural resources had no right being in the economic doldrums the way it was. However we’ve noted a generally positive vibe about the country’s prospects. An examination of the IMF’s most recent Article IV consultation is guardedly positive (yes I know these things are always written in diplomatic speak but the tone is in there)

Executive Directors commended the authorities for implementing sound macroeconomic policies, resulting in a better growth and inflation performance and an improved debt sustainability outlook.

 Thing is Guyana is SO far down, it will take a long time to get out of the hole, but at least there is some progress in the right direction.

 

Marginal.