British Trade Chief on standby to recommend increase in Guyana’s funding ceiling

Last Updated on Sunday, 25 August 2024, 21:40 by Writer

Britain’s Trade Commissioner for Latin America and the Caribbean, Jonathan Knott said he would ask his government to increase its United Kingdom Export Finance (UKEF) funding to Guyana once all of the already increased amount has been exhausted.

“The first thing we’ve got to do is exhaust the limit of UK Export Finance financing. My hope is that we’re super successful on this trip in the coming months s0 that it’s not enough. At that point, I’ll be going back to the UK and I’ll be talking to my colleagues in UK Export Finance: ‘Look, we need to increase it even further'”, he told Demerara Waves Online News.

Moments earlier, at a networking reception in honour of Mr Knott, Finance Minister Dr Ashni Singh encouraged “as many British businesses as possible” to take advantage of the increased Guyana market risk appetite (MRA) and pave the way f0r further increase in the ceiling.

That was in stark contrast to the UK Trade Chief’s account of the extent to which Guyana was taking advantage of the credit facility which excludes any spending on oil and gas in line with the British government’s position on climate change. “It’s a recent uplift so there is plenty of room right now and part of this trip is to use up the most of that extra offer,” he said.

In February, 2024, the UK announced that its credit agency, UKEF, had increased its country limit of the Guyana MRA from GB£750 million to GB£2.1 billion for both government and private sector projects, a move that had been welcomed by Guyana’s Private Sector Commission. The UK Trade Commissioner, during his visit, reinforced the need for Guyana to take advantage of the credit facility. “Let’s use up all of that appetite and then let me go back and ask for more,” he said.

Total trade between the UK and Guyana was GB£1.9 billion, an increase of 17.7 percent or GB£282 million. Those figures make Guyana the UK’s largest trading partner, accounting for 33.4 percent of all of UK’s trade, the UK’s Regional Director for the Commonwealth Caribbean – Department for Business and Trade.

During his recent visit to Guyana when he and his delegation met with President Irfaan Ali and other top government officials, as well as representatives of the local business community, Mr Knott praised the “quality of the conversations”.