Venezuela to Write Off Guyana Debt

GEORGETOWN, Guyana (GINA): Guyana will soon benefit from a US$12.5
million debt write-off by Venezuela after the agreement is finalised
later this week. This is one of the issues that was flagged for
resolution during a State visit by the President of Venezuela Hugo
Chavez in 2004. At that time, Chavez indicated his intention to cancel
100 percent of Guyana’s then outstanding debts to Venezuela.

Guyana's Minister of Finance Dr Ashni Singh on Monday received a
courtesy call from Dario Morandy, the newly accredited Ambassador of
Venezuela to Guyana. The Minister welcomed the Venezuelan envoy to
Guyana and expressed satisfaction at having the opportunity to discuss
bilateral co-operation issues with him.

A
team of Guyana government officials is scheduled to meet with their
Venezuelan counterparts, in Caracas, on October 4 and 5, 2007 to
conclude a debt cancellation agreement, under which Guyana stands to
benefit from a 100 percent write-off of its outstanding debt of some
US$12.5 million. This amount represents the balance of a US$15 million
debt contracted in 1974 with the Venezuelan government.

Singh
expressed gratitude to the Government and people of Venezuela for
providing the opportunity to bring closure to this outstanding debt
issue and informed the ambassador that as a result of this gesture,
Venezuela would become the fourth Non-Paris Club creditor to provide
Guyana with a 100 percent debt write-off – the others being China,
India and Cuba.

Also discussed was the Venezuelan proposal to
finance the construction of a shelter for homeless persons. Morandy
informed the Minister that the Venezuelan authorities have already
approved funds to construct this building and further indicated that
this issue would be concluded when the representatives of the two
governments meet in Caracas later this week.