Saturday, October 1, 2022

US$200M more withdrawn from Guyana oil fund

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Senior Finance Minister Dr Ashni Singh announced that Government has made its second draw down from the Natural Resource Fund in accordance with the Natural Resource Fund (NRF) Act 2021.

The Minister indicated that pursuant to Section 16 of the NRF Act 2021, a further US$200 million equivalent to G$41.6 billion has been transferred from the Natural Resource Fund to the Consolidated Fund to finance national development priorities. It would be recalled that in May of this year, the Government made its first withdrawal of $200 million equivalent to G$41.7 billion. This brings the accumulated withdrawals to date from the NRF to US$400 million, equivalent to G$83.3 billion.

This transfer was made in accordance with the strengthened legal architecture of the NRF Act 2021. The International Monetary Fund, which recently concluded the 2022 Article IV mission to Guyana in May-June of this year, commended Government on the amendments made to the NRF Act and the staff concluding statement highlighted:

“The recent amendments to the 2019 Natural Resource Fund Act set clear ceilings on withdrawals from the fund for budgetary spending and promote transparency in the management and use of oil resources. Staff praised the authorities’ thorough review of the 2019 NRF Act before making amendments, and the restraint in using any oil revenues before the passage of the amendments,’

The NRF Act 2021 came into operation on 1st January 2022, and as part of the Budget 2022 process, Parliamentary approval was granted for a total of US$607.6 million to be transferred during the fiscal year 2022.

 

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