& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News





Guyana bombarded by money lenders with financing plans as oil boom begins -finance minister

Luc Cohen/Reuters

Guyana's Finance Minister Winston Jordan speaks to Reuters in Georgetown, Guyana January 20, 2020.

By Luc Cohen / Reuters

Petroleumworld 01 22 2020

Bankers are “bombarding” Guyana with offers of financing backed by future oil production, the finance minister told Reuters, but the South American nation is rejecting the proposals to avoid the excessive borrowing that has plagued other oil producers.

As the former British colony begins its first significant oil production this year, it is wary of avoiding the mistakes made in oil-dependent economies such as Angola, Nigeria and its economically collapsing neighbor Venezuela.

Winston Jordan, an economist and career public servant, also cited Guyana's own history of economic crisis in the 1980s for turning down overtures to finance infrastructure and development before oil money started flowing.

“At the IMF meetings, I was bombarded, at the IDB meetings, I'm bombarded with people telling you how much money they can lend you,” he said in an interview on Wednesday in his Georgetown office, referring to the International Monetary Fund and Inter-American Development Bank.

He declined to name the specific institutions, saying only that “quite a few banks, quite a few middlemen” offered loans of between $500 million and $2 billion.

During the oil boom years, Venezuela borrowed more than $50 billion from China through loans that were repaid in oil shipments, a practice later replicated in Ecuador. The arrangements were criticized for lack of transparency.

A consortium led by Exxon Mobil ( XOM.N ) has discovered more than 6 billion barrels of oil and gas off Guyana, a find that could transform the impoverished country's agriculture- and mining-dependent economy.

With fewer than 800,000 inhabitants, Guyana is seen as a test for whether oil revenue can spur sustainable development in a country lacking strong institutions.

Other petrostates have seen crude sales lead to corruption and debt-fueled spending binges, often described as the “resource curse.”

Guyana in the early 1980s defaulted on foreign debt, fueling an economic crisis characterized by chronic shortages of consumer goods. Following economic austerity and debt relief, the economy began recovering in the 1990s.

“I much rather that we slowly ramp up,” Jordan said. “We will avoid resource curse.”

Legislation this year established that Guyana's oil revenue will flow to a sovereign wealth fund, and withdrawals must fund specific projects rather than day-to-day expenses. Committees to oversee the fund have not been formed because the opposition and the private sector have not named representatives, Jordan said.

The opposition People's Progressive Party has said President David Granger's government overstepped its authority by forming the fund, given its “caretaker” status after losing a 2018 no-confidence vote. The opposition is promising a new sovereign wealth fund “insulated from political interference.”


Additional reporting by Neil Marks; Editing by Bernadette Baum from Reuters. 01 20


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories


Copyright© 1999-2020 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions as the source.

Other stories you have to get authorization by its authors. Internet web links to are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8, 10 +/ 800x600 pixels

Twitter: @petroleumworld1




Editor & Publisher: Elio Ohep/
Contact Email:

CopyRight © 1999-2020, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2020, Petroleumworld ™  / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.