Guyana’s decision to borrow before its oil revenues reached current levels was intended to accelerate national development rather than wait for larger petroleum earnings, businessman and former Private Sector Commission Chairman Komal Singh said.
Singh made the comments during an interview on the Guyana Dialogue podcast on August 20. He was responding to a question about Guyana’s increasing share of oil revenues from the Stabroek Block and the country’s use of borrowing to finance development.
He pointed to the years before Guyana began receiving larger oil revenues, when the government faced questions over why it was taking on loans despite the country’s emerging petroleum wealth.
“The government was very optimistic that at some point in time, they will be able to generate a lot more income… Instead of having your people and your country at stalemate, waiting until you derive that income, the intent was to try to develop the country as fast as possible using some level of borrowings at competitive rates,” he explained.
Guyana began producing oil in December 2019, but its entitlement from Stabroek Block production has since increased significantly. President Irfaan Ali announced on August 19 that Guyana’s share had reached 39.8% of crude oil produced, up from 12.5% when production began.
The increase follows a substantial reduction in the share of production used to recover project costs. According to Ali, about 20 barrels out of every 100 produced are currently required for cost recovery, leaving roughly 80 barrels as profit oil to be split equally between Guyana and the Stabroek Block co-venturers.
Singh said the higher oil income now places Guyana in a stronger position to service the debt accumulated during the earlier development period.
“And whenever the time is ripe and you start having excess revenue in your system, which is where we are today, you’re now going to be in a better position to repay those loans,” he said.
Oil revenues have been fueling Guyana’s development for several years, driving a sharp expansion in national spending. The 2026 national budget reached GY$1.558 trillion (US$7.47 billion), with GY$495 billion (US$2.37 billion) approved for transfer from the Natural Resource Fund (NRF), accounting for about 32% of the budget. NRF withdrawals have also risen significantly, from US$607 million in 2022 to US$2.46 billion in 2025, as the government channels petroleum revenues into national development and infrastructure.
