Guyana government makes first withdrawal from oil fund for 2024

Guyana’s Ministry of Finance said the government has transferred US$250 million (approximately GY$52 billion) from the Natural Resource Fund (NRF) to its main bank account, the Consolidated Fund. 

The National Assembly had approved US$1.586 billion (approx. GY$330 billion) to be withdrawn from the Fund to support Guyana’s US$5.496 billion (GY$1.146 trillion) national budget.

The withdrawals are expected to be done in several tranches throughout the year. Oil revenues will support 29% of the budget this year.

The sum for withdrawal in 2024 was derived using a new formula legislated earlier this year. Replacing the initial formula, the new one allows for a greater sum of revenues from oil to be spent every year. The formula ties the calculation of withdrawals only to funds deposited in the Fund the previous year, guaranteeing savings.

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The Fund currently holds over US$2 billion accumulated from oil sales, royalties, and interest.