Guyana: Staff Report for the 2019 Article IV Consultation—Informational Annex
Author: International Monetary Fund. Western Hemisphere Dept.
Publication Date:
17 Sep 2019
eISBN:
9781513514093
Language:
English
Keywords:
ISCR; CR; debt; authority; Guyanese authorities; CARTAC; BoG staff; CPI revision; website of the Bank of Guyana; holdings of currency; CPI method; External sector statistics; Balance of payments statistics; Government finance statistics; Monetary statistics; Caribbean
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2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guyana

Abstract

2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guyana

Fund Relations

(As of April 30, 2019)

Membership Status. Joined: September 26, 1966; Article VIII.

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Outstanding Purchases and Loans: None

Latest Financial Arrangements:

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Formerly PRGF.

Overdue Obligations and Projected Payments to Fund1

(SDR Million; based on existing use of resources and present holdings of SDRs)

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When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Previous Decisions and Article IV Consultation Cycle:

  • On December 18, 2003, the Executive Board determined that Guyana had reached the completion point under the enhanced HIPC Initiative (IMF Country Report No. 04/123).

  • On February 27, 2009, the Executive Board concluded the 2008 Article IV consultation.

  • On March 17, 2010, the Executive Board concluded the 2009 Article IV consultation (IMF Country Report No. 10/292).

  • On February 16, 2011, the Executive Board concluded the 2010 Article IV consultation (IMF Country Report No. 11/152).

  • On November 9, 2012, the Executive Board concluded the 2012 Article IV consultation (IMF Country Report No. 12/254).

  • On December 9, 2013, the Executive Board concluded the 2013 Article IV consultation (IMF Country Report No. 14/294).

  • On May 9, 2016, the Executive Board concluded the 2016 Article IV consultation (IMF Country Report No. 16/216). Guyana is on a 12-month cycle for Article IV consultations.

  • On May 24, 2017, the Executive Board concluded the 2017 Article IV consultation (IMF Country Report No. 17/175). Guyana is on a 12-month cycle for Article IV consultations.

  • On June 15, 2018, the Executive Board concluded the 2018 Article IV consultation (IMF Country Report No. 18/220). Guyana is on a 12-month cycle for Article IV consultations.

Safeguard Assessments

The most recent safeguards assessment of the Bank of Guyana (BoG) was completed in May 2007 in respect of the then expected PRGF arrangement. Overall the assessment noted capacity constraints, including in the internal audit function. Recommendations were made to enhance internal audit reporting and to improve external audit quality to enable compliance with International Standards on Auditing (ISA) and IFRS. In the reserves management area, staff recommended the establishment of an investment committee. The latter has been implemented. The BoG continues to be audited by the Audit Office of Guyana and the reports state compliance with ISA. The BoG’s financial statements refer to IFRS and are published.

Exchange Rate Arrangement

Guyana has accepted the obligations of Article VIII––Section 2, 3, and 4—and maintains an exchange system that does not have any multiple currency practices, and is free of restrictions on the making of payments and transfers for current international transactions, with the only exception of certain exchange restrictions for the preservation of national and international security. Guyana’s de jure exchange rate regime is floating. Guyana’s de facto exchange rate regime is classified as a stabilized arrangement The currency of Guyana is the Guyana dollar. The exchange rate was G$209.2 per U.S. dollar as of July 16, 2019.

ROSC, FSAP, EPA Participation

  • The ROSC on Fiscal Transparency Module was undertaken in July 2002.

  • A WB/IMF FSAP took place in November 2005 and concluded in September 2006.

  • Ex-Post Assessment findings were discussed with the authorities in June 2006 and concluded on October 23, 2006.

  • A WB/IMF FSAP took place in May 2016 and concluded in March 2017.

Technical Assistance – Fiscal Affairs Department

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Monetary and Capital Markets Department

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Statistics Department

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Legal Department

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Resident Representative

The office was closed in end-January 2009.

Collaboration with the Bank and Other International Financial INSTITUTIONS

  • As of May 28, 2019, Guyana has collaborations with The World Bank Group, Inter-American Development Bank, and Caribbean Development Bank.

  • Further information can be obtained from the following hyperlinks.

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Statistical Issues

(As of May 28, 2019)

A. Assessment of Data Adequacy for Surveillance

General: Data provided to the Fund is broadly adequate for surveillance purposes, although timeliness, reliability, and coverage can be improved. Selected data are only available during missions and upon request. Monetary and external statistics, exchange rates and interest rates are reported to the Fund and available also from the website of the Bank of Guyana (BoG) but with certain lags. The Ministry of Finance (MOF) provides macroeconomic and fiscal statistics in annual and semiannual publications on its website in a PDF format. While specific statistics areas have received technical assistance, some limitations remain in the compilation and dissemination of data for certain sectors. Oil exploration and drilling is partially included in the balance of payment statistics, but not in the national accounts. Future technical assistance should focus on helping Guyana incorporate reliably the contribution of the oil sector in national statistics and balance of payment statistics, compiling an Industrial Production Index and a Producer Price Index.

National Accounts: The 2018 technical assistance mission from CARTAC provided advice to the Bureau of Statistics to improve the GDP-P and GDP-E methodology and related source data, as well as implement the relevant System of National Accounts 2008 (2008 SNA) changes. The compilation files were redeveloped for manufacturing, construction, accommodation, food services, real estate, business, and other services industries, with 2012 as the new base year. The TA also helped to improve coverage and the source data quality issues and trained the Bureau of Statistics (BoS) national accounts staff on the recommended SNA changes. The 2019 technical assistance helped the BoS of Guyana to improve and rebase the GDP estimates, and build BoS staff capacity to compile the national accounts. The rebasing of GDP will help to incorporate oil production into the national statistics.

Future work will focus on compiling an Industrial Production Index and a Producer Price Index. The BoS could increase the coverage of surveys, particularly with respect to the services sector. It started the household budget survey in October 2018 and expect to complete in October 2019. The BoS has conducted a labour force survey and the results are expected to be published mid-2019. The BoS has launched the All-Urban CPI, Households Budget Survey, and Living Conditions Survey in 2018.

Government finance statistics: Fiscal statistics are disseminated through several Ministry of Finance (MOF) publications, including the Mid-Year Report on the annual budget, the Budget Speech and other budget-related documents. Authorities plan to upgrade their fiscal statistics to reflect the impact of future petroleum revenue and to incorporate it in their future budget projections.

Monetary and financial stability statistics: The BoG has made significant progress in improving the quality of monetary statistics, especially about the institutional coverage. The monetary statistics currently include the BoG, other depositary corporations (commercial banks, the New Building Society, and trust companies), and other financial corporations (finance companies, life insurance companies, non-life insurance companies, pension funds, and asset management companies). The BoG’s monetary statistics provide data for publication in the IFS Supplement, based on standardized report forms. The BoG publishes on a regular basis prudential indicators for commercial banks, depository and non-depository nonbanks in its quarterly report and on its website. CARTAC has helped make progress with developing macro-prudential/systemic risk indicators and financial stability indicators for the insurance sector.

External sector statistics (ESS): In 2017, a follow-up mission from CARTAC assisted the BoG in strengthening the compilation and dissemination of external sector statistics. There were some improvements in the quality of balance of payments data. Progress has been made on most of the main recommendations, including implementing a pilot enterprise survey, compiling a partial international investment position (IIP), and preparing quarterly balance of payments data following the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) format. The 2017 mission also provided hands-on guidance to major enterprises to complete and submit the survey forms. The BoG staff continues to follow up on the completion of the survey with the companies. For the IIP, beside capacity constraints at the BoG, the main data gaps include direct investment and other financial assets and liabilities of the nonfinancial private sector and public corporations. A pilot enterprise survey was conducted, but the response rate is low.

B. Data Standards and Quality

Guyana is a participant in the enhanced General Data Dissemination System (e-GDDS).

C. Reporting on STA (Optional)

In 2017, the BoG submitted to STA for dissemination the quarterly balance of payments in BPM6 format, starting with data for 2015. No data are being reported for publication in the Government Finance Statistics Yearbook.

Guyana, Table of Common Indicators Required for Surveillance

(As of June 1, 2019)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Balance sheet information of the Bank of Guyana and the consolidated balance sheet of the other depository corporations on standardized report forms are submitted to the Statistics Department of the IMF.

Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing (partial information).

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Only domestic debt, including currency and maturity composition (partial information).

Daily (D), Weekly (W), Monthly (M).

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Cover IMF Staff Country Reports
Guyana: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guyana
Author: International Monetary Fund. Western Hemisphere Dept.
Volume/Issue:
Volume 2019: Issue 296
Publisher:
International Monetary Fund
ISBN:
9781513514093
ISSN:
1934-7685
Pages:
91
DOI:
https://doi.org/10.5089/9781513514093.002