Finance Minister Dr Ashni Singh recently reminded the World Bank and other multi-lateral financing institutions that the Caribbean Region still needs debt relief and concessional financing.
Dr Singh made these remarks while participating in a regional panel discussion on “Building resilience through sustainable development financing in the Caribbean,” which was facilitated by the World Bank. Also participating were other regional finance and international banking representatives.
“It is well known in the Region that we have a serious problem with indebtedness. And we are not being treated with the seriousness that the matter deserves because of what I’ve called the middle-income illusion,” the Finance Minister said.
“There is an illusion of prosperity because many of our countries are middle-income countries and their per capita income is above the specified thresholds. We don’t qualify for the typical treatments that low-income countries would get. Both in terms of consideration for debt relief and consideration for concessional financing. And this is a problem.”
The Finance Minister called on international development partners to improve access to concessional financing and also urged the Region to explore innovative ways to garner financing and alluded to Guyana’s leadership in carbon credit sale initiative.
“The issue of debt sustainability in the Caribbean has to be addressed. And intellectual effort has to be devoted to articulating why the Caribbean is different and why the peculiar and extraordinary vulnerabilities we face through no fault of ours.”
Singh also cited an example that was given by St Vincent and the Grenadines Prime Minister, Dr Ralph Gonsalves, who said that at one point he had to borrow money from international sources to build a bridge, then borrow money to rebuild it after a hurricane and then re-borrow money after a second hurricane to repair that very bridge.
“So, I would want to use this forum to say, when we speak of sustainable financing for the Caribbean, we have to put this question of debt sustainability, squarely on the front of the table,” the Minister said.
“And we have to accept and confront the reality that the Caribbean faces this peculiar vulnerability that has to be taken into account for the purposes of mobilising financing.
“Both through new resources and debt relief. And the World Bank is uniquely placed and endowed with the intellectual assets to articulate this case in a rigorous way,” Singh added.
Meanwhile, the Finance Minister further pointed out that a lasting solution to the fiscal challenges faced in the Region will not be achieved until the Region is able to achieve productive diversification. Here he cited the Region’s reliance on tourism, though he acknowledged that a few countries including Guyana are blessed with more natural resources.
The Minister’s reference to carbon credit sales comes even as Guyana has emerged as a leader in the carbon credit market. Last year, Guyana signed a historic, multi-year US$750 million agreement with Hess Corporation for the purchase of 37.5 million carbon credits.
Guyana is, in fact, the first country to conclude the ART process of certifying its forest carbon.
These serialised credits, listed on ART’s public registry, are available to buyers on the global carbon market, including for use by airlines for compliance with the International Civil Aviation Organisation’s global emission reduction programme, CORSIA, as well as for use toward voluntary corporate climate commitments.
Guyana’s completion of the ART process paved the way for other governments that are looking to receive carbon market finance for success in protecting and restoring forests. At the time Guyana was issued with the credits, 14 other countries and large sub-national jurisdictions were working toward their own issuances of TREES credits.
