Russia writes off Gy$56.7M of Guyana’s debt

Finance Minister Dr Ashni Singh and Russian Federation to Guyana Ambassador Nikolay Smirnov exchanged official documents that conclude and bring into force the agreement between the two countries to cancel Guyana’s debt owed to Russia in the amount of US$277,490.24 or G$56.7 million.

The cancelled debt originated from two loans contracted on October 23, 1984 and December 24, 1984 between the former Guyana National Cooperative Bank (GNCB) on behalf of the government of Guyana and “AVIAEXPORT” (a Russian Foreign Trade Agency) for an amount totalling US$9,409,044.71 to purchase two military helicopters for the Guyana Defence Force (GDF).
The Russian Federation had previously provided debt relief to Guyana on December 22, 2004 by writing off 98.32 per cent of the US$16,573,498.37 that was outstanding at that time. The current write-off covers the remaining balance of US$277,939.31.
This agreement puts into effect the decision taken by the Russian Federation in December 2006 to go beyond the Paris Club Initiative and write off 100 per cent of the debt of those countries who had reached completion point under the Enhanced Heavily Indebted Poor Countries Initiative by December 31, 2006, including Guyana. The funds are to be used to assist Guyana in financing projects in the areas of poverty reduction, environmental protection as well as economic development.
The agreement was signed by the two governments with a view to developing cooperation, strengthening the cordial friendship between the two countries and striving together to attain the Millennium Development Goals as stipulated in the United Nations Millennium Declaration of September 8, 2000.
Dr Singh expressed his gratitude and deep appreciation on behalf of the government and people of Guyana to Ambassador Smirnov and the government and people of the Russian Federation for their generosity and support to the people of Guyana throughout the years. Guyana looks forward to the continued assistance of the government and people of the Russian Federation in the cause of furthering the development of Guyana.
Russia and Guyana have been successfully cooperating in the areas of economic and human capital investments. In recent years, a number of Guyanese students have benefitted from scholarships from the Russian government  and the Bauxite Company of Guyana Incorporated (BCGI), a subsidiary of RUSAL (Russia’s Aluminium Company), to attend prestigious universities in Russia.
In 2012, five young Guyanese students, who were sponsored by the Russian government, returned to Guyana as specialists in the various areas, after having completed their course of study.  Another five students who were sponsored by BCGI in 2011 to study in Russia are yet to complete their studies.  Upon their return to Guyana, they would be hired to work for BCGI.
BCGI is a flagship joint venture of successful economic cooperation and is a top bauxite producer with significant payments of royalties. The company has plans to increase production to 1.9 million tonnes in 2013, thereby bringing new jobs for Guyanese.
Russian companies such as RUSAL and Consolidated Northwest Resources Incorporated have contributed to the social and economic development in the local communities where they operate through donations of equipment, school supplies and sponsorship of sports and other activities. In particular, RUSAL has spent close to Gy$20 million on various projects as part of its social commitment to the Region 10 community.