Georgetown : According to the 2014 mid- year economic report, as at end June 2014, Guyana’s total external public debt stood at US$1.23 billion, which was 1.6 percent lower than at the end of 2013.
The report shows that the decline in the debt stock follows the conclusion of a fourth Debt Compensation Agreement with Venezuela under the Petro Caribe deal and the Wind-up Agreement of the Caricom Multilateral Clearing Facility (CMCF), in the first quarter of 2014.
Under the fourth Debt Compensation Agreement with Venezuela, the debt owed to that country was reduced by US$55.5 million corresponding to the value of rice and paddy shipped under the Guyana-Venezuela Rice Trade Agreement from October 2013 to February 2014.
According to the report, under the CMCF Wind-up Agreement, Guyana secured additional enhanced HIPC debt relief through the cancellation of theUS$35.9 million debt that was outstanding.
In addition, principal repayments to external creditors increased by 10.8 percent to US$16.9 million as at June. Actual external debt service payments totalled US$24.8 million, which was 12.6 percent greater than the US$22 million as at June 2013.
The increased total debt service payments for the first half of 2014 is mainly the result of higher principal and interest payments to multilateral creditors.
Further, at the end of June 2014, Guyana's domestic debt stock stood at US$422.7 million which was 11.8 percent below the end 2013position.
This decline was primarily due to a reduction in Treasury bill issuance by the Bank of Guyana.
As at June 2014, actual domestic debt service payments totaled US$3 million, a significant reduction by 67.1 percent compared with the US$9.2 million made during the first half of 2013, the report stated.
The drop in domestic debt service payments follows the full repayment, in the first quarter of 2013, of certain domestic debentures held, obviating the need for similar payments in 2014.
