IDB Approves US$350 Million Loan to Guyana to Strengthen Social Safety Net and Empower Vulnerable Populations

The Inter-American Development Bank (IDB) Board of Executive Directors has approved a US$350 million policy-based loan to Guyana, underpinning the country’s ongoing efforts to modernize and expand its social-protection systems. In approving this second and final operation in a programmatic series (the first of which was co-financed with Global Affairs Canada), the IDB recognizes Guyana’s strong macroeconomic performance and its commitment to inclusive social reform.

The loan will support the Ministry of Human Services and Social Security (MHSSS) in enhancing the efficiency and reach of its social safety net, with a focus on digital transformation, inclusion, and empowerment of vulnerable groups. Key components of the program include:

1. Digital Transformation of Social Services: Streamlining and digitalizing MHSSS processes to reduce transaction costs and improve service delivery for beneficiaries.
2. Enhanced Senior Citizens’ Pension Program: Supporting over 82,000 senior citizens expanded access to electronic payment systems.
3. Expanded Public Assistance for Persons with Disabilities: Increasing the coverage of the Public Assistance program, which has already supported more than 6,000 individuals with disabilities.
4. Growth of the Learning Lab: Scaling up training programs that equip persons with disabilities with employability skills, adaptive living techniques, and tools for improved quality of life.
5. Women’s Economic Empowerment: Expanding the Women’s Innovation and Investment Network (WIIN) Business Clinic to provide women with training in business management, legal literacy, and access to funding.
6. Support for Survivors of Gender-Based Violence: Strengthening the Survivors Advocates program and the Counter Trafficking in Persons Unit to provide comprehensive support to survivors.
7. National Action Plan Against Human Trafficking: Supporting the development of a coordinated, inter-institutional strategy to combat human trafficking.

These initiatives, launched in 2023, reflect a holistic approach to social protection, targeting the most disadvantaged and underserved populations in Guyana.

The IDB loan features a 20-year amortization period, a 5.5-year grace period, a one-year disbursement window, and a SOFR-based interest rate.

This operation showcases the IDB’s commitment to supporting Guyana’s social development agenda that provides opportunities for all and building a more resilient society.