§ Mr. Jonathan EvansTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on future aid to Guyana.
§ Mr. Lennox-BoydFollowing the recent election, and in recognition of the sound economic policies being followed by the Government of Guyana, we have offered £15 million of aid for commitment, as far as possible, over the next three years. We have agreed with the Guyana Government that priorities for support will include public administration, water supplies, education, forestry and agriculture.
In addition, we have agreed to convert our outstanding aid loans to Guyana to grants by retrospectively adjusting their terms, with effect from 1 August 1993, in recognition of Guyana's poverty, indebtedness and its continuing commitment to an International Monetary Fund reform programme. The total value of the retrospective terms adjustment package is £36.3 million in principal and £17.1 million in interest, bringing the overall aid to Guyana to over £68 million.