On April 30, 2020, Guyana’s Natural Resource Fund account was credited with US$4,919,505.30 – the royalty payment for oil produced and sold from the Stabroek Block in the first quarter of 2020. During this quarter, approximately 5,029,301 barrels were produced and sold from the Stabroek Block, and no crude oil produced during this period was used for fuel or transportation. As such, and in accordance with Article 15.6 of the Petroleum Agreement for the Stabroek Block, the Government of the Cooperative Republic of Guyana was entitled to two percent of this quantity. This deposit to the NRF represents the cash value of GRCG’s royalty entitlement, given GCRG’s election to receive its royalty payment in cash. Further details on the monthly breakdown of royalty payments due to GCRG can be found in the Ministry of Finance’s monthly Report on Petroleum Production and Revenues.
The Natural Resource Fund Act 2019, which was enacted by the Parliament of the Cooperative Republic of Guyana, in January 2019, established our nation’s sovereign wealth fund (SWF), known as the Natural Resource Fund (NRF), for the purpose of managing the natural resource wealth of Guyana for the present and future benefit of the people and for the sustainable development of the country. On December 11, 2019, the Government entered into an operational agreement with the Bank of Guyana for the operational management of the NRF. On December 20, 2019, Guyana became an oil producing country, and, in February 2020, the Government’s first entitlement of crude oil was lifted from Liza Destiny, which amounted to just over 1 million barrels. On March 11, Shell Western Supply and Trading Limited, the company that was contracted to lift Guyana’s first three cargoes deposited US$54,927,994.80 into an account held by the Bank of Guyana, as payment for the first lift in February 2020
In establishing the NRF, the Government committed to managing the Fund according to the principles of good governance, including transparency, accountability and international best practices, including the Santiago Principles. The NRF Act 2019 requires several reports to be published, including, but not limited to:
1) Reports from the Public Accountability and Oversight Committee, Macroeconomic Committee and Investment Committee;
2) Reports on withdrawals from the NRF, to be included in the annual budget proposal and, if needed, in a Supplementary Appropriation Bill;
3) Annual reports of the NRF, including audited financial statements;
4) Quarterly reports and financial statements of the NRF; and
5) Monthly reports of the NRF.
On April 15, 2020, the Bank of Guyana, in accordance with section 38(1) of the NRF Act 2019, as well as the operational agreement with the Ministry of Finance, submitted the monthly report on the NRF for March 2020. On April 23, 2020, the Ministry of Finance, in accordance with section 42(c) of the NRF Act 2019, has published this report on its website for the public to access.
Download NRF Statement of Accounts:
As Guyana continues to implement measures to deal with COVID-19, the Bank of Guyana (BOG) is cognizant of the likely economic and financial fallout that may result including/ particularly the negative effects on the banking system.
In this regard, the BOG strongly encourages banks/ financial institutions to offer relief to affected individual and commercial customers by considering the following:
- reduce interest rates on loans and credit cards to customers,
- defer loan payments to assist customers in good standing,
- defer loan payments by companies to assist with their liquidity requirements
- waive or reduce fees/penalties for transactions with ATMs, POS, EFT, debit cards, loan processing, late payments on loans, etc., and
- encourage customers to reduce in-person transactions by using e-banking, ATMs, POS, telephone, etc.
In view of COVID-19, the BOG as the Supervisory Authority will permit the following for affected sectors:
- allow banks to renegotiate credit facilities by waiving paragraphs 14 and 15 of Supervision Guideline No. 5,
- grant a three-month moratorium to classify affected accounts as non-performing,
- ensure the foreign market continues to function to satisfy legitimate needs as well as ensure compliance with Circular No. 5 of 2017 on Bank Cambio Operation, and
- continue with an accommodative monetary stance to promote sustained growth and development of the economy.
The BOG notes that the financial system is safe and sound and reiterates the critical role banks play in the economy. The BOG will continue to monitor COVID-19 and the evolving economic conditions and may consider other measures, if necessary.
The Guyana Revenue Authority (GRA) having noted the concerns of its many stakeholders in relation to the provision of services during the threat of COVID-19 (Coronavirus), wishes to advise the following:
Applauds investment by local consortium to advance Guyana’s digital economy
(Georgetown, January 29, 2020): Finance Minister, Winston Jordan, on Wednesday was given a tour of E-Networks subsea cable landing station at Kingston, Georgetown. The landing station houses E-Networks’ Xlink cable, a newly constructed submarine fiber optic cable that links Guyana to Barbados.
Commenting on the project, Minister Jordan said that he was particularly impressed that it was organised and successfully executed by a consortium of local investors. He added that he was encouraged by the evident confidence of the investors in assuming such a massive and capital-intensive undertaking, that will provide considerable benefits for the development and modernising of the sector. This, he noted, aligned with the Coalition Government’s encouragement of the private sector in advancing Guyana’s economic expansion beyond agriculture and mining.
The Finance Minister further said that the Xlink project exemplified the ideal investment model for Guyana, one in which local benefits, local content and indigenous ownership are guaranteed through the collaboration of Guyanese companies, Guyanese investors and local financial institutions, especially now that the economy is poised for transformation.
Minister Jordan congratulated the Managing Director of E-Networks, Mr. Persaud for the boldness of the investment, and expressed full support for the Xlink venture. He said that he was excited about the possibilities it had for universal connectivity and the realization of the digital economy promised during the Decade of Development, 2020 -2029.
(Georgetown, 21-01-2020) – Guyana’s Natural Resource Fund (NRF) has attained associate membership of the International Forum of Sovereign Wealth Funds (IFSWF); a global network of sovereign wealth funds of more than 30 countries including Singapore, Botswana and Australia.
The IFSWF works to foster good governance, transparency, accountability and prudent investment practices within its members through the application of the Santiago Principles, helps them navigate the complex investment environment through knowledge sharing, and represents the ‘views of members to the wider financial community.’
The NRF was established in 2019 under the Natural Resource Fund Act 2019 and is designed to manage the revenues garnered from Guyana’s petroleum resources for the present and future benefit of the people, and for the sustainable development of the country. The Ministry of Finance has entered into an operational agreement with the Bank of Guyana to manage the Fund.
The achievement of associate membership demonstrates Government’s commitment to transparently manage Guyana’s petroleum revenues.
Read more about the NRF at finance.gov.gy. and at https://www.ifswf.org/members/natural-resource-fund.