IDB approves $350 million loan to Guyana to strengthen social protection systems

The Inter-American Development Bank (IDB) has approved a $350 million policy-based loan to Guyana to help modernise and expand the country’s social protection systems.

The financing marks the second and final operation in a programmatic series, following an earlier phase co-financed with Global Affairs Canada, the bank said in a release.

The IDB cited Guyana’s strong macroeconomic performance and commitment to inclusive social reform in its decision to approve the loan.

The funds will support the Ministry of Human Services and Social Security (MHSSS) in improving the efficiency and reach of social safety nets, with a focus on digital transformation and services for vulnerable groups.

Key measures include digitalising MHSSS processes, expanding access to electronic pension payments for more than 82,000 senior citizens, and increasing coverage of public assistance for over 6,000 people with disabilities.

Other components include scaling up the Learning Lab to provide job training and adaptive living support for persons with disabilities, expanding the Women’s Innovation and Investment Network (WIIN) Business Clinic, and strengthening programmes for survivors of gender-based violence and human trafficking.

The initiatives, launched in 2023, aim to support disadvantaged and underserved communities across the country.

The IDB loan includes a 20-year amortisation period, a 5.5-year grace period, a one-year disbursement window, and carries a SOFR-based interest rate, the release said