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Japan provides cash for private sector borrowing

Last Updated on Saturday, 26 December 2015, 20:59 by GxMedia

Foreign Minister Carolyn Rodrigues-Birkett and Japan’s Ambassador to Guyana, Yoshimasa Tezuka sign the grant-aid agreement. Witnessing the signing are Director General of the Ministry of Foreign Affairs, Elisabeth Harper and Japan’s Honorary Consul to Guyana, Kashir Khan.

Japan on Monday formally provided a US$2.9 million grant to the Guyana government for lending to the private sector to import goods.

Inking the agreement were Foreign Affairs Minister, Carolyn Rodrigues-Birkett and Japan’s Ambassador to Guyana, Yoshimasa Tezuka.

The envoy said the private sector would be allowed to buy civil engineering equipment and electrical power machinery. The Foreign Minister said that the goods would not necessarily have to be purchased from Japan but it is an expectation.

Rodrigues-Birkett explained that when the private sector repays the Guyana government, the monies would remain in the country to be spent on the country’s economic and social development. “It’s a very unique mechanism. The private sector will once they would have repaid the government, the funds will be used for other development in Guyana,” she said.

Businesses can apply to the Ministry of Finance for loans.

Japan has in the past provided funds towards the New Amsterdam Hospital, Corriverton Water Supply Project and the East Demerara Water Conservancy. That country also provides scholarships to Guyanese.