The Government of Guyana is owed a staggering $81.9 billion by several state-owned entities (SOEs), according to the Ministry of Finance’s Mid-Year Report for 2024. Among the key debtors are the Guyana Power and Light (GPL), the Guyana Sugar Corporation (GuySuCo), and the Guyana National Printers Limited.
This substantial debt—equivalent to US$392.6 million—is the result of on-lent loans and direct borrowing from the Treasury, highlighting the ongoing financial strain within these public enterprises. Despite the inability of these SOEs to meet their debt service obligations, the government has continued to honour its own commitments to the main lenders, absorbing the financial burden.
The report emphasizes the risks posed by the financial instability of these enterprises. SOEs, particularly those in utilities and agriculture, are heavily reliant on government subsidies to stay operational. The failure of these entities to balance their budgets and meet their financial obligations could lead to increased transfers from the government, exacerbating fiscal pressures.
The Finance Ministry’s report notes that mitigating these fiscal risks requires enhanced oversight, accountability, and improved performance of SOEs. Key measures include exploring economies of scale to reduce expenses and reliance on government grants, strengthening risk assessment procedures for government guarantees, and ensuring that SOEs adhere to stricter financial management protocols.
GPL, in particular, has been under scrutiny for its financial performance, as the utility provider has faced recurring issues of debt accumulation and operational inefficiencies.
Meanwhile, GuySuCo continues to struggle despite significant government support, as the sugar industry grapples with long-standing financial woes.
