Month: April 2018

28 Apr
By: Tanika Jones 0

Bank of Guyana Assures that the Financial System Remains Strong, Stable and Profitable

The Bank of Guyana, including the Board of Directors, wishes to caution overzealous finance commentators against making uninformed statements about the banking system and the mandate of the Bank of Guyana. The financial system is too sensitive for reckless and irresponsible statements on the economy.

The most recent opinion contained in “State of central government deposits at the Bank of Guyana” by Sasenarine Singh of Sundari Solutions offers a view that the Bank of Guyana’s balance sheet ‘has been losing value for a while…’.

This statement is not true. The Bank’s assets have been increasing over the recent past. The audited financial statements of the Bank indicate that the assets of the Bank have increased from $189 billion at the end of 2015, to $220 billion at the end of 2016. The estimates for year 2017 show the assets increased to $224 billion.

Further, the Bank wishes to make it clear that the assets are adequate to absorb shock to the financial system and is collaborating with the Ministry of Finance to retire the debt.

The Bank wishes also to reiterate that the financial system, including the commercial banks and the Bank of Guyana remains sound and stable. The system is fully capitalized, liquid and profitable.

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28 Apr
By: Tanika Jones 0

Bureau of Statistics launches National Strategy for the Development of Statistics; data for better developmental planning to be strengthened

Availability, accuracy and timeliness of information for decision making across the public agencies will be further strengthened as the Bureau of Statistics in collaboration with the Inter-American Development Bank (IDB) and the OECD-Partnership in Statistics for Development in the 21st Century (PARIS21) has launched the National Strategy for the Development of Statistics (NSDS).

The launch of the NSDS was followed by a four (4) day NSDS strategic planning workshop which ran from April 17 to 20, and was attended by representatives of the public and private sector.

The launch wraps up a series of institutional assessment activities that are aimed at enhancing the availability of current statistics and information in general across Guyana.

Minister of Finance, Winston Jordan delivered the main address and emphasised the importance of ‘an efficient and effective National Statistical System.’ He also thanked the Inter-American Development Bank (IDB) for their contribution towards the realization of the Strategy.’

Minister Jordan also said that the ‘project, which will end in March 2019, will set out the government’s vision for a National Statistics System and specify the mission of the System as a whole. It will also identify short, medium and long term goals, set out strategies that will need to be adopted and executed, and spell out actions that will need to be taken.’

He pointed out that the objectives of the project play a tremendously important role in Guyana’s plans for development in the medium to long term and reiterated its importance as it ‘ensures that Guyana’s National Strategy for the Development of Statistics is not only comparable with the rest of the world but is of a very high standard and fulfils all scientific statistical standards in the creation of this medium term strategic plan.’

Guyana is the fifth CARICOM member country to develop this strategy and as a member of the United Nations, has signed onto and committed to 17 Sustainable Development Goals. The indicators that are used to track these goals require information that is supplied by public sector organizations. Therefore all public sector heads have a responsibility in ensuring the various organisations are committed to the successful implementation of this national strategic plan. The institutional assessment activities are part of a three year project funded by a US$442,092 grant from the Inter-American Development Bank.

A vision statement, mission statement, core values and strategic objectives were developed as part of the creation of the National Strategy for the Development of Statistics. It is expected that a strategic plan will be submitted by December 2018 for approval.

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27 Apr
By: Tanika Jones 0

Public Private Partnership (PPP) Handbook

The Government of the Cooperative Republic of Guyana’s (GCRG) strategic trajectory to 2020 and beyond, is pillared on the thematic of ‘A Good Life in a Green Economy,’ underpinned by robust economic growth that is equitably distributed, good governance and environmental sustainability.

Guyana’s Vision 2020 articulates GCRG’s developmental priorities, central to which are: bridging the coastal and hinterland divide; economic diversification; infrastructural improvement; and agricultural, social and human development.

The objective of this strategy is to enhance the employment-generation potential of the economy and raise the quality of life of all sections of the population.

To attain this objective, Government will invest heavily in catalytic physical infrastructure; renewable energy and the environment; agricultural diversification; agro-industrial development; education and training; and information technology. These prioritized interventions will focus on programmes geared towards critical economic diversification initiatives which are needed to ensure economic growth and stability and the development of non-traditional economic sectors, particularly through the raising of value-added in both traditional and non-traditional industries.
These interventions are intended to transform the Cooperative Republic of Guyana into a highly competitive, diversified, technologically advanced, high-income services and knowledge economy, fully integrated into the new global economic environment.

To finance this ambitious developmental programme, Government is creating the appropriate policy and institutional and legal frameworks for encouraging the private sector to participate more fully in procuring and financing infrastructural projects and services in the public sector, through well-designed Public Private Partnerships (PPPs).

PPPs are long-term relationships between public and private sector entities that will bring private sector resources, including financing, technological, technical and managerial expertise to create infrastructural projects for public good. Such relationships are intended to ensure that the investments are solid and sustainable, and that they contribute to the improvement of public finances and the expansion of fiscal space.

PPPs require strong legal, policy, appraisal, approval and monitoring arrangements to guide policy decisions and to enforce Public Private Partnerships agreements.. In this regard, the Ministry of Finance has solicited and secured the assistance of the Caribbean Development Bank (CDB) for the formulation of a PPP Policy and Legislative Framework for Guyana. This Policy and Legislative Framework will guide national efforts in establishing PPP’s as a vehicle for financing and implementing key national development initiatives.

Public Private Partnership (PPP) Handbook
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24 Apr
By: Tanika Jones 0

Minister Jordan donates bus sheds to Linden

To view the complete album of this event visit here.

To view more galleries, visit our Flickr account at https://www.flickr.com/financegy/

 

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20 Apr
By: Tanika Jones 0

Ministry of Finance responds to Guyana Times – No VAT on Exports

The Ministry of Finance notes with consternation an article published in the Guyana Times today April 20, 2018, ‘Govt moving to tax manufacturing exports.’

The article alleges that ‘local Guyanese exporters are next in line to be taxed by the current Government as serious consideration is being given to have the zero-rating of exports for Value Added Tax (VAT) purposes removed.’

The Ministry categorically denies this allegation and makes pellucid that the export of taxable items remains Zero- Rated.

Since the implementation of VAT in 2007, it has not been charged on exports as a relief for exporters, and that has NOT changed. Furthermore, there have been NO discussions or contemplations to charge VAT on exports.

Please be assured that such a proposal with far-reaching consequences would not be introduced without proper consultation and analysis of the impact on the manufacturing sector, and the export and local economy.

The Ministry is therefore appealing to persons to cease reporting unsubstantiated claims and malicious allegations without confirming the facts, and unnecessarily alarming and misleading members of the public to score cheap political points.

As provided in the VAT legislation, there is a distinction between Zero-Rated Supplies and Exempt Supplies. Exempt items/supplies are not considered taxable supplies and are therefore not subject to VAT whether locally supplied or exported. On the other hand, taxable supplies are subject to VAT and include items taxed at the rate of zero (Zero rated) and items taxed at the rate of 14% (Standard rated).

For further clarity, VAT is not charged on Zero rated supplies but the VAT registrant is entitled to claim or recover input VAT credits since the good or service is considered a taxable activity. On the other hand, an exempt supplier is not required to charge VAT and is also not allowed to reclaim VAT.

It should be noted in accordance with Section 17 and 18 of the VAT Act, where the local supply of goods is taxable or zero-rated, they are zero-rated for export. In these cases, input VAT incurred can be recovered. However, if the local supply of goods is exempt then the export of these items is considered an exempt supply. Input VAT incurred in the production of exempt items cannot be recovered whether for local supply or export.

Initiatives were taken to exempt or zero rate raw materials and other items used in the manufacturing/ export sector to reduce the burden of VAT. Please refer to the extensive revised list of Zero-Rated and Exempt supplies which identifies among other things, raw and packaging materials; lumber; and investment/local manufacturing. This list which accords with Schedules l and ll to the Value-Added Tax Act, Cap 81:05 was widely publicized by the Guyana Revenue Authority (GRA) in January 2018 and can be found on its website, www.gra.gov.gy.

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20 Apr
By: Tanika Jones 0

Bank of Guyana responds to Guyana Times article: Guyana’s gold reserves prudently managed

The Bank of Guyana notes with alarm an article in the Guyana Times captioned ‘Bank of Guyana gold reserves plummet,’ published on April 18, 2018. The caption is misleading and the article itself recklessly presents a woeful interpretation of available data.

For the record, the Bank of Guyana trades gold and replenishes the stock based on market opportunities. Gold is not managed as an exclusive reserve asset for holding, but as part of a portfolio of assets. Gold may be sold for a number of reasons; including maximizing profits, rebalancing of the portfolio, meeting liquidity needs, or optimizing opportunities in other asset classes. With the price of gold as high as USD1,364.00 recently, the Bank has been trading gold as any Bank worth its salt will do.

Dips in the reserves therefore, reflect strategic trading rather than any involuntary disposal of gold.

BoG therefore, wishes to assure that the benchmark for the holdings of international reserves are vigilantly adhered to and upheld. Additionally, the domestic market has an excess supply of foreign currency to meet domestic demand while maintaining a stable foreign currency exchange rate.

Press Release: Bank of Guyana responds to Guyana Times article
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