CHRONICLE: NAGAMOOTOO ATTEMPTS TO MISLEAD NATION ONE AGAIN--THIS TIME ON PUBLIC DEBT

MINISTER of Finance, Dr. Ashni Singh has described recent comments on Guyana’s public debt by AFC Member of Parliament, Moses Nagamootoo as that MP’s latest attempt to mislead the Guyanese people.

Minister Singh said that Nagamootoo has a rapidly accumulating track record of deviation from the truth and, on this

occasion, he has once again

MINISTER of Finance, Dr. Ashni Singh

painted a misleading picture, this time in relation to Guyana’s indebtedness, either deliberately to score cheap political points by factual distortion, or accidentally by venturing outside the boundaries of his competence.

In relation to Nagamootoo’s statements reported in the February 10, 2013 issue of Kaieteur News, the minister said these statements attempt to deceive the reader by blatantly misrepresenting the facts as they relate to Guyana’s debt and economic situation. Mr. Nagamootoo’s assertion that Guyana’s debt is “at its highest” simply lacks substance and constitutes economic sabotage and slander since it gives a negative impression of Guyana to investors and creditors alike.

The facts are clear as day. Guyana’s debt levels are much lower now than they were in 1992, and more importantly, the current debt levels are sustainable, meaning that we are now able to repay our debt without economic strain which is in stark contrast to the debt in 1992, which was completely unsustainable since the country could not afford to meet its debt payment obligations.

A simple comparison of the public debt in Guyana dollar equivalent is misleading, since it does not take into account the movement of the exchange rate to the US dollar over the years, or the growth that has occurred in the economy over the years. As such, a comparison of the debt using US dollars amount would be more accurate. It is an insult to the intelligence of readers for Mr. Nagamootoo to claim that “the country’s debt is at its highest” despite recognising that the total Public Debt at September 30, 1992, amounted to US$2.1 billion and that this figure had been significantly reduced to US$1.7 billion as at March 31, 2012.

Moreover, Mr. Nagamootoo ignores a critical fact that would be obvious to any reasonable and logical thinking reader, that is, one cannot assess level of indebtedness without making reference to wealth and income levels. In other words, higher wealth and income levels make debt payments easier. As a result, a person or country with greater income could borrow more without putting their financial situation in jeopardy.

Put simply, Guyana’s total public debt declined from US$2.1 billion in 1992 to US$1.7 billion in 2012. At the same time, Guyana’s gross domestic product increased from US$371 million in 1992 to US$2.8 billion in 2012. Similarly, Central Government’s revenue has increased from US$141 million in 1992 to US$637 million in 2012. Guyana’s exports increased from US$382 million (including Omai export proceeds) in 1992 to US$1.4 billion in 2012. The country’s external reserves increased from US$191 million in 1992 to US$872 million in 2012.

In other words, over the period 1992 to 2012, Guyana’s public debt in US dollars declined by 22 percent, while GDP, Government revenue, exports and external reserves increased by 666 percent, 353 percent, 266 percent, and 356 percent respectively.

Put differently, in 1992, Guyana’s public debt to GDP ratio amounted to 602 percent. By 2012, that ratio had declined to 64 percent. In addition, in 1992, over 90 percent of government revenue was being used to service our debts, whereas by 2012, that ratio has declined to 9 percent.

In addition, Guyana’s levels today are sustainable according to the most recent Debt Sustainability Analysis conducted by the International Monetary Fund (IMF) and the World Bank. This analysis assesses the country’s debt by taking into consideration all debt payment obligations due in the future, not just those due in any single year. The concept of debt used in this analysis is termed the “Net Present Value (NPV) of Debt” and this NPV of Debt has, in recent years, stayed within the sustainable thresholds applied by the IMF. Clearly, Guyana’s economy and public debt is in a far better position today than when the PPP/C assumed office in 1992.

The Kaieteur News Article also states that the public debt figures “suggest that Guyana has been borrowing more”, as if to suggest that the government should not borrow to finance public services and other projects. Should this principle be applied to everyone, then people should not take mortgages to build or purchase new and better homes but rather remain in their current living situation. Similarly, by this logic, businesses should not borrow to invest and expand their operations.

The Government of Guyana pursues an agenda of development and progress which includes responsible borrowing to finance some of the facilities and services to the people, which improves the standard of living and supports further investment and development.
In addition, it should be noted that a significant portion of the addition to the public debt in recent years has been the result of borrowing under the PetroCaribe arrangement with Venezuela. This arrangement allows Guyana to repay a portion of the oil debt with Venezuela through barter terms. Since 2009, Guyana has utilised this facility to the benefit of rice farmers and millers by exporting local rice and paddy to Venezuela.

As at December 31, 2012, Guyana had exported a total value of US$280 million worth of rice and paddy to Venezuela. During 2012, Guyana completed the first round of debt compensation with Venezuela to reduce the debt owed by US$100.8 million, the value of rice and paddy shipped from December 2009 to July 2011. This would have to be deducted from the 2012 debt stock. The remainder of the value of rice and paddy shipped to Venezuela would be discounted from the debt stock once subsequent debt compensation agreements are concluded in 2013.

Guyana’s public debt has been managed prudently and effectively by the PPP/C Government, with the result that the public debt levels and ratios are within sustainable norms for the first time in the country’s recent history. Furthermore, new borrowing has been specifically targeted at those projects and programmes that contribute positively to economic growth and development and the improvement of livelihood for all Guyanese. Assertions by Mr. Nagamootoo to the contrary are unfounded, misleading, and irresponsible.

In concluding his remarks, Minister Singh called on Mr. Nagamootoo to desist from making statements about matters with which he either has limited familiarity, or on which he has conducted limited research, and to confine himself to factual representations on all matters. Failing this, Minister Singh stated, Mr. Nagamootoo’s rapidly growing reputation as a stranger to truth would be further reinforced

yaaaaaaaaaaaawn

all u have left is schtick (and plenty crayons) . . . poor u

AFC's chief economic advisor Dr Tarron Khemraj, who posts on GNI under 2 handles, the mature and decent TK and the crass, vulgar and boorish redux, has been working for weeks on putting out a paper on Guyana's public debt.

Well Tarron, the numbers are there for all to see---Guyana's debt is sustainable---and Minister Ashni Singh has explained the PetroCaribe aggrangement with Venezuela.

In the meantime, Moses has been exposed as a LIAR again---and this psychopath wants to be President ? NEVER!

Rev

yaaaaaaaaaaaaaaawn

GNI antiman-in-chief trying on some old saris . . . still lookin under de other threads fuh he panties

===

 

Tarron Khemraj the man behind redux

 

yaaaaaaaaaaaaaaawn

 

GNI antiman-in-chief trying on some old saris . . . still lookin under de threads fuh he panties

Tarron:

Please dont use your crass, vulgar and boorish redux handle to derail this thread.

It's an important subject we are dealing with---Guyana's public debt.

Rev

CHRONICLE: NAGAMOOTOO ATTEMPTS TO MISLEAD NATION ONE AGAIN--THIS TIME ON PUBLIC DEBT

 

MINISTER of Finance, Dr. Ashni Singh has described recent comments on Guyana’s public debt by AFC Member of Parliament, Moses Nagamootoo as that MP’s latest attempt to mislead the Guyanese people.

Minister Singh said that Nagamootoo has a rapidly accumulating track record of deviation from the truth and, on this

occasion, he has once again

 

MINISTER of Finance, Dr. Ashni Singh

painted a misleading picture, this time in relation to Guyana’s indebtedness, either deliberately to score cheap political points by factual distortion, or accidentally by venturing outside the boundaries of his competence.

In relation to Nagamootoo’s statements reported in the February 10, 2013 issue of Kaieteur News, the minister said these statements attempt to deceive the reader by blatantly misrepresenting the facts as they relate to Guyana’s debt and economic situation. Mr. Nagamootoo’s assertion that Guyana’s debt is “at its highest” simply lacks substance and constitutes economic sabotage and slander since it gives a negative impression of Guyana to investors and creditors alike.

The facts are clear as day. Guyana’s debt levels are much lower now than they were in 1992, and more importantly, the current debt levels are sustainable, meaning that we are now able to repay our debt without economic strain which is in stark contrast to the debt in 1992, which was completely unsustainable since the country could not afford to meet its debt payment obligations.

A simple comparison of the public debt in Guyana dollar equivalent is misleading, since it does not take into account the movement of the exchange rate to the US dollar over the years, or the growth that has occurred in the economy over the years. As such, a comparison of the debt using US dollars amount would be more accurate. It is an insult to the intelligence of readers for Mr. Nagamootoo to claim that “the country’s debt is at its highest” despite recognising that the total Public Debt at September 30, 1992, amounted to US$2.1 billion and that this figure had been significantly reduced to US$1.7 billion as at March 31, 2012.

Moreover, Mr. Nagamootoo ignores a critical fact that would be obvious to any reasonable and logical thinking reader, that is, one cannot assess level of indebtedness without making reference to wealth and income levels. In other words, higher wealth and income levels make debt payments easier. As a result, a person or country with greater income could borrow more without putting their financial situation in jeopardy.

Put simply, Guyana’s total public debt declined from US$2.1 billion in 1992 to US$1.7 billion in 2012. At the same time, Guyana’s gross domestic product increased from US$371 million in 1992 to US$2.8 billion in 2012. Similarly, Central Government’s revenue has increased from US$141 million in 1992 to US$637 million in 2012. Guyana’s exports increased from US$382 million (including Omai export proceeds) in 1992 to US$1.4 billion in 2012. The country’s external reserves increased from US$191 million in 1992 to US$872 million in 2012.

In other words, over the period 1992 to 2012, Guyana’s public debt in US dollars declined by 22 percent, while GDP, Government revenue, exports and external reserves increased by 666 percent, 353 percent, 266 percent, and 356 percent respectively.

Put differently, in 1992, Guyana’s public debt to GDP ratio amounted to 602 percent. By 2012, that ratio had declined to 64 percent. In addition, in 1992, over 90 percent of government revenue was being used to service our debts, whereas by 2012, that ratio has declined to 9 percent.

In addition, Guyana’s levels today are sustainable according to the most recent Debt Sustainability Analysis conducted by the International Monetary Fund (IMF) and the World Bank. This analysis assesses the country’s debt by taking into consideration all debt payment obligations due in the future, not just those due in any single year. The concept of debt used in this analysis is termed the “Net Present Value (NPV) of Debt” and this NPV of Debt has, in recent years, stayed within the sustainable thresholds applied by the IMF. Clearly, Guyana’s economy and public debt is in a far better position today than when the PPP/C assumed office in 1992.

The Kaieteur News Article also states that the public debt figures “suggest that Guyana has been borrowing more”, as if to suggest that the government should not borrow to finance public services and other projects. Should this principle be applied to everyone, then people should not take mortgages to build or purchase new and better homes but rather remain in their current living situation. Similarly, by this logic, businesses should not borrow to invest and expand their operations.

The Government of Guyana pursues an agenda of development and progress which includes responsible borrowing to finance some of the facilities and services to the people, which improves the standard of living and supports further investment and development.
In addition, it should be noted that a significant portion of the addition to the public debt in recent years has been the result of borrowing under the PetroCaribe arrangement with Venezuela. This arrangement allows Guyana to repay a portion of the oil debt with Venezuela through barter terms. Since 2009, Guyana has utilised this facility to the benefit of rice farmers and millers by exporting local rice and paddy to Venezuela.

As at December 31, 2012, Guyana had exported a total value of US$280 million worth of rice and paddy to Venezuela. During 2012, Guyana completed the first round of debt compensation with Venezuela to reduce the debt owed by US$100.8 million, the value of rice and paddy shipped from December 2009 to July 2011. This would have to be deducted from the 2012 debt stock. The remainder of the value of rice and paddy shipped to Venezuela would be discounted from the debt stock once subsequent debt compensation agreements are concluded in 2013.

Guyana’s public debt has been managed prudently and effectively by the PPP/C Government, with the result that the public debt levels and ratios are within sustainable norms for the first time in the country’s recent history. Furthermore, new borrowing has been specifically targeted at those projects and programmes that contribute positively to economic growth and development and the improvement of livelihood for all Guyanese. Assertions by Mr. Nagamootoo to the contrary are unfounded, misleading, and irresponsible.

In concluding his remarks, Minister Singh called on Mr. Nagamootoo to desist from making statements about matters with which he either has limited familiarity, or on which he has conducted limited research, and to confine himself to factual representations on all matters. Failing this, Minister Singh stated, Mr. Nagamootoo’s rapidly growing reputation as a stranger to truth would be further reinforced

.....Put simply, Guyana’s total public debt declined from US$2.1 billion in 1992 to US$1.7 billion in 2012. ......

Correction...2.1 billion in 1992 minus 90% dept write off euals 210 million. Mr number dude can maybe explain how 210 million become 1.7 billion in 2012....

rev, u are an indecent fool and ignorant antiman . . . nothing more

maybe one day, when u are reincarnated a little taller . . . a little smarter, u may have something important to say

until then . . . feel my whip

vty, Redux

Sachin:

Unlike the crass, vulgar and boorish redux(TK's alter ego) above, the Rev is very respectful in his interactions with fellow gni posters.

Now sachin, you have your numbers mixed up. This is what you wrote:

"Mr number dude can maybe explain how 170 million become 2.8 billion in 2012...."

* The public debt in 2012 is now 1.7 billion not 2.8 billion.

* Guyana's GDP in 2012 is 2.8 billion

RE: 90% OF GUYANA'S PUBLIC DEBT IN 1992 BEING WRITTEN DOWN

That was good for Guyana---the country was able to get back on a good footing.

Now, In order for a country to experience economic growth and development---new credit and therefore additional debt must be taken on---that explains Guyana's public around 1.7 billion.

This also explains the 1.7 billion figure:

 

In addition, it should be noted that a significant portion of the addition to the public debt in recent years has been the result of borrowing under the PetroCaribe arrangement with Venezuela. This arrangement allows Guyana to repay a portion of the oil debt with Venezuela through barter terms.

Minister Ashni Singh pointed out 90% of government revenues in 1992 was used to service debt---today only 9% of government's revenue is used to service debt.

So the 1.7 billion public debt is totally sustainable---infact there is room to increase the debt load.

Rev

I never spoke to Moses regarding the sustainability of Guyana's debt. As a politician Moses is correct to ask questions. This is just another lie Rev is peddling. I have my views on the debt that I cannot fully form until I know the PetroCaribe portion. This we know is a big secret. I have seen a recent estimate of PetroCaribe of US$900 for Guyana. I thought it is really large so I need to do my own research into this. 

Amral: I hope you are taking note that this man REV keeps saying I am Redux. Please clarify this issue as soon as possible. 

he is not only saying this, he is posting your photograph to 'support' this obvious lie . . . in a transparent campaign to defame

is this now allowed on GNI . . . just askin?

TK:

Let's assume you are right regarding the $900 million petrocraibbe number.

So what ?

The fact is whatever the Petroccaribe number is---that number is part of the $1.7 billion public debt---and that 1.7b debt load is totally sustainable---Minister Singh said only 9% of government revenues is used to service the debt.

One more thing---read this part again:

As at December 31, 2012, Guyana had exported a total value ofUS$280 million worth of rice and paddy to Venezuela.

 

During 2012, Guyana completed the first round of debt compensation with Venezuela to reduce the debt owed by US$100.8 million, the value of rice and paddy shipped from December 2009 to July 2011.

 

This would have to be deducted from the 2012 debt stock. The remainder of the value of rice and paddy shipped to Venezuela would be discounted from the debt stock once subsequent debt compensation agreements are concluded in 2013.

 

So that 1.7b public debt figure has to be reduced by 100.8 million---and then later in 2013---there will be another reduction in the debt stock.

GOOD NEWS FOR GUYANA = BAD NEWS FOR THE AFC.

Rev

PS. Amral, if you read this, please note the crass, vulgar and boorish behavior of poster redux---redux has this nasty habit of abusing his fellow posters calling themantimen, etc---posters are free to disagree with the viewpoints of each other---but crass, vulgar and boorish redux consistently engages in ad-hominem attacks.

Rev, what is there to show for the money borrowed? I don't need your hogwash ref to pre 92.

With all this supposed robost growth and the proliferation of white elephants, why is Guyana still number two poorest in the hemisphere?

Why is there no improved quality of life for the poor?

i don't prance around the forum in dirty panties, semi-naked, describing people as "N*GGER INDIANS," while calling for the MURDER/LYNCHING of named public figures in Guyana by death squads

which is worse, u smelly piece of shit . . . hmmm?

and WTF does all THIS have to do with Tarron Khemraj eh, antiman?

Mithun:

There is a strong likelihood you have not visited Guyana in years---pay a visit and see with your own eyes---tremendous progress all across Guyana.

Listen Mithun, since the PPP took over:

* The infrastructure in Guyana has vastly improved--roads, bridges, drainage and irrigation

* Investments have been made in the hinterland areas--AmerIndians have benefited.

* Big investments in healthcare

* Big investments in education

* Big investments in the IT sector---the fiber optic cable from Brazil will soon be completed.

GUYANA IS ON THE MOVE MITHUN!

Rev

Moses has become desperate, shameless and so angry that it is best to leave him to drown in his ignorance!!!

Nehru bhai:

There is an old saying when you hang with shyt you soon start to smell--and right now Moses is smelling like dog-shyt. Since Moses jumped into bed with the PNC he has been a psychopath.

There is no more disingenuous, deceitful, lying and hypocritical politican in Guyana today than Moses Nagamootoo---the man is a scumbag--he so despises and hates the PPP---he would do anything to put the PNC back into power.

There is a quite an apt phrase to describe Indians like MOSES:

Rev

Rev, This Mithun Guy is a bloody FOOL. What Stupidity!!!

rev i go to guyana 3 to 4 times a year to guyana what big inprovement you talking about guyana is still a shithole when it rain georgetown stinks all these new housing scheme flood and the people in berbice lock up their place before 6 clock the courts always stinks animals all over the road guyana looks like a country without any order

Yuh sure the Plane nah drop yuh off in Ghana????????????

===

Amral of course does not notice this. I will have to make a formal complaint. 

Moses never raised any issue pertaining to the sustainability of debt. He never said the debt is sustainable or unsustainable. He asked for the value of the debt. We don't know what percentage of the debt is owed to Venezuela, a country that claims 5/8 of Guyana. The whole exercise by Ashni Singh seems to be one where he wants to throw out some terms which I am not sure he even understands. The people of Guyana are entitled to know the make up of the debt. They need to know the structure of interest. Does the US$1.7 bill include the domestic public debt also or only external public debt.

I don't think the Rev would mind when we start placing his picture on the board.

Ashni Singh and the Rev has one thing in common that I know of...they're both liars.

You are and your fellow losers in the AFC are trying to hard to sow doubt in the minds of the Guyanese people and create chaos and confusion in Guyana. But you are destined to fail. Very few Guyanese pay attention to your ramblings Tarron Khemraj.

Listen! Unlike the PNC which ran up the public debt and bankrupted Guyana, the PPP has been very prudent in managing Guyana's debt.

If the Minister of Finance says the public debt is 1.7 billion---that's what it is---and it's mostly likely both domestic and external.

You asked about the stucture of the interest.

Well, why don't you google Petrocaribe---this is what you'll find regarding the structure of the interest on the Petrocaribe debt:

The Petrocaribe payment system allows for purchase of oil on market value for 5%-50% up front with a grace period of one to two years; the remainder can be paid through a 17-25 year financing agreement with 1% interest if oil prices are above US$40 per barrel.

BOTTOM LINE:

* With government revenues at $637 million(US) in 2012

* And with only 9% of revenues used to service debt

Guyana's public debt is totally manageable and sustainable.

But 3rd rate/3 cents AFC economic advisor DUNCY Tarron Khemraj is free to keep asking useless questions---he and out and out, dyed in the wool, congenital liar Moses Nagamootoo---these LOSERS are free to keep asking useless questions.

Rev

Jamaica has a bigger population and a smaller public debt. But it is trying to get that restructured since 50% off all taxes collected goes towards paying off that debt.

Guyana with its smaller population and bigger debt has no chance of paying it off at this rate. The economy is in a terrible state.

Listen TK:

Moses doesn't know the difference between an income statement and a balance sheet---and "sustainability" is a foreign word to him.

What DUNCY Moses said was "Guyana's debt was at the highest level ever."

He was lying in parliament and lying to the Guyanese people about Guyana's public debt.

Minister Ashni Singh revealed sufficient numbers to expose Moses as a liar.

RE: TARRON KHEMRAJ & PETROCARIBE

You have been hinting for a while now TK that there was something untoward about the petrocaribe debt----well, the Minister talked about the petrocaribe deal---it looks like Petrocaribe agreement was good for Guyana and the Guyanese people.

Rev

ASHNI SINGH: "* In 1992 Guyana's GDP was 371 million; in 2012 Guyana's GDP was 2.8 billion"

=========

Ok Folks pick sense from nonsense. For Guyana's GDP to reach US$2.8 bill today from US$371 in 1992 compound annual growth rate had to be 11.22% per year over 19 years.  How many of you believe Guyana grew at 11.22% compound annual rate since 1992? 

Mr. T:

Did you say Jamaica has a smaller public debt than Guyana ?

Listen Mr. T! learn how to use google---dont come here and embarrass yourself posting nonsense.

Click on the link---then come back here and tell us what Jamaica's public debt is---what the country's GDP is and what the debt to GDP ratio is:

http://www.gfmag.com/gdp-data-...t.html#axzz2KiaM7pdV

Rev

I do. The drugs trade has exploded in a big way under the PPP. In 1992 you could be riding a donkey. Now you can be driving a Bentley. All because of cocaine.

So what's the debt burden of every Guyanese against that of every Jamaican based on your figures? Tell us if you think the Guyanese debt is smaller.

Well TK!

Gold price in 1992 when the PPP took over was $315 an ounce

Gold price today--20 years later = $1651 an ounce

How many of you believe gold grew at 8.63% compound annual rate since 1992 ?

But the numbers don't lie---that's what the compounded growth rate is of gold between 1992($315/oz) and today(1651/oz).

Now TK! That is just one example---check out the components of the Guyana's GDP---and do the math---it is not just conceivable---but a fact that Guyana's GDP grew at a compounded rate of 11.2% since 1992.

YOU ARE NUMERICALLY CHALLENGED TK.hahahaha

You don't know how to interpret numbers!

Rev 

Oh don't worry. The components must equal the whole annual GDP. We shall educate the people of this big lie Ashni is trying pass off. 

Check this:

* Jamaica's public debt = $23.06 billion; Jamaica's population =2,709,000

* Guyana's public debt = %1.7 billion; Guyana's population = 750,00

Do the math and get back to the Rev ?

Rev

What happen deh Rev, Goggle doesn't give math answers or your calculator bruk?

Looks like you are dying to find out the answer.

Rev

TK:

This is what you wrote:

Ok Folks pick sense from nonsense. For Guyana's GDP to reach US$2.8 bill today from US$371 in 1992 compound annual growth rate had to be 11.22% per year over 19 years.  How many of you believe Guyana grew at 11.22% compound annual rate since 1992? 

Ashni said that Guyana's GDP was 371 million in 1992 and 2.7 billion in 2012.

Are you disputing those numbers ? Aren't those the numbers the world bank list on their site for Guyana ?

If those GDP numbers are, indeed, correct, then the compound growth rate doesn't lie---it is 11.22% as you stated.

Rev