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– Power company identified as only state organization to benefit from PetroCaribe Fund By Kiana Wilburg The Guyana Sugar Corporation (GuySuCo) and the Guyana Power and Light (GPL) are yet to fully honour their debt owed to the Government of Guyana.Finance Minister, Winston JordanThis is according to Finance Minister Winston Jordan. The economist made this and other pertinent statements in his historic Annual Public Debt Report.The report, which was prepared with the help of the Debt Management Division of the Ministry of Finance,Cheap Jerseys 2018, is the first of its kind in Guyana. The report presents an overview of debt developments during the last five-year period (2011 to 2015).According to the report,Cheap NFL Jerseys, the two major state-owned enterprises benefitted from a process called “on-lending”.The document explains that this arrangement is one whereby the Government obtains a loan; usually concessional financing from an international financial institution such as the World Bank or the Caribbean Development Bank, then passes on the loan principal to another entity, usually a State Owned Enterprise (SOE). The SOE is thereafter known as the beneficiary.The document said that the loan between Government and the international financial institution is often referred to as a primary loan. The on-lent loan between Government and the beneficiary is called the subsidiary loan.The report said that on-lending is a means by which the Government can support strategically important projects that aid national development. The Government enters in an on-lending arrangement, given that the primary loan proceeds are earmarked to fund capital expenditure for the SOEs.The terms and conditions of the primary loan agreements differ typically from those included in subsidiary loan agreements. Interest rates are usually higher in subsidiary loan agreements than in primary loan agreements, but the rate is generally lower than the rate that the beneficiary could otherwise negotiate from commercial lenders, the report explained.By improving their financial viability, the report goes on to state that on-lending can facilitate the delivery of development projects that are expected to provide broader economic benefits to Guyana.With the aforementioned understanding in mind, the report highlighted that the two beneficiaries of on-lent loans were the Guyana Power and Light Incorporated and the Guyana Sugar Corporation Incorporated.At the end of 2015, the report said that the Government had on-lent some US$282 million to these two entities. Of that amount, the document said that 54.8 percent was on-lent to the GPL. It said that there are 11 on-lending loan agreements, seven of which are between the Government and the GPL and four between the Government and GuySuCo.Of the 11 on-lending agreements, the report says that six of them were financed directly from the PetroCaribe Fund.The Report said, “Over the review period, all new on-lending agreements were contracted with the GPL in the amount of US$80.1 million. The source of funding for these agreements was the PetroCaribe Fund. GPL has been the only SOE that benefitted from the PetroCaribe Fund. The transfer of funds to GPL, financed several projects aimed at improving the services provided by this entity.”It was noted as well that at the end of 2015,Cheap Stitched Jerseys, GPL and GuySuCo had repaid less than one percent of their debt due and payable to the Government.“These SOEs have over the years been billed for the debt service payments falling due,China Jerseys, but have not made payments to the Government. Many SOEs do not appear to have the resources to service their debt obligations to the Government,” the document said.It continued, “Of the main beneficiaries of on-lent loans, GuySuCo was the only SOE covered by a Memorandum of Understanding (MOU), which was specifically for loans on-lent in relation to the Skeldon Sugar Modernization Project (SSMP). The MOU states the all payments due within three (3) years after 2008 will be deferred. The MOU came to an end on December 31,cheap nfl jerseys elite, 2011.”However,NFL Jerseys China Online, it was noted that GuySuCo has not resumed repayment of its obligations to the Government. The report shows that its total On-lending Loan Agreements at the end of December 31, 2015 amounted to US$127.6M.The process of reconciling the debt outstanding by SOEs to the Government commenced in 2015.At the end of 2015, this process was still in progress and the Government is expected to make arrangements to recover the debt from the SOEs.