‘Big banks eye oil boom’
Oct 30, 2025
…IsDB and IDB sign pact to lend Guyana and Suriname US$1B over next five years
…to target transportation, energy, education, health sectors
(Kaieteur News) – The Islamic Development Bank (IsDB) and the Inter-American Development Bank Group (IDB Group) have renewed their strategic partnership, pledging US$1 billion over the next five years to support development projects in Guyana and Suriname.
Dr. Muhammad Al Jasser, Chairman of the Islamic Development Bank (IsDB) Group, H.E. Mr. Ilan Goldfajn, President of the Inter-American Development Bank, and Mr. James P. Scriven, CEO of IDB Invest, renewed the partnership between the institutions through a new Memorandum of Understanding (MoU).
The renewed collaboration will focus on advancing inclusive and sustainable development in both countries, with investments focused on key sectors, such as transportation, energy, urban development, education, rural development, health, and resilience, the IDB said in a statement on Wednesday. “At the Islamic Development Bank, we are committed to empowering our member countries and fostering partnerships that advance sustainable development. This renewed engagement with the IDB Group allows us to jointly deliver transformative projects that will enhance livelihoods, strengthen resilience, and promote shared prosperity in Suriname and Guyana,” said IsDB President H.E. Dr. Muhammad Al Jasser.
“We are joining forces with the Islamic Development Bank to unlock new co-financing opportunities in Guyana and Suriname, as well as cooperation with other member countries, to build resilience, foster inclusive growth, and improve lives,” said IDB Group President Ilan Goldfajn.
Beyond Suriname and Guyana, the partnership supports broader collaboration in common member countries and IDB member countries with significant Muslim populations, the release stated. The MoU also aims to deepen cooperation between the two institutions in areas that promote inclusive growth, including trade and investment, as well as sustainable transportation solutions that enhance regional connectivity and climate resilience. The institutions reaffirmed their shared commitment to knowledge sharing and delivering impactful development solutions, as well as strengthening cooperation among Latin America and the Caribbean, Gulf States, and other stakeholders.
Meanwhile, the renewed agreement comes at a time when both Guyana and Suriname are drawing growing international attention as emerging oil producers. Guyana is already pumping over 600,000 barrels of oil per day, making it the world’s fastest-growing economy in recent years. Suriname, meanwhile, is preparing to move toward first oil, expected by 2028, with recent discoveries by major international oil companies.
With the oil sector set to transform both economies, analysts note that multilateral development banks such as the IDB and IsDB are positioning themselves to play a larger role in financing infrastructure and public sector reforms linked to oil-driven growth. The MoU, while framed as a development initiative, also provides a platform for expanded lending and co-financing in high-value sectors. In Guyana, the IDB is already one of the largest multilateral lenders, supporting projects in energy, agriculture, and digital infrastructure. Suriname, meanwhile, has benefited from IsDB and IDB assistance in health and education but is expected to require significant new investment as oil revenues begin to flow.
Officials of the two banks during their meeting.
Chartered Accountant, Christopher Ram while commenting Guyana’s growing debt recently told this newspaper the Guyana Government lacks a clear borrowing policy and reliance on a “misleading” debt-to-GDP ratio are troubling. “A significant portion of GDP around 60% does not belong to Guyana, while any debt incurred certainly does,” he said. “We are using oil as a reason for increasing our debt, both in absolute and relative terms. There is no long-term economic planning.”
Guyana’s total Public and Publicly Guaranteed (PPG) debt stood at US$5.993 billion at the end of 2024, up from about US$4.5 billion a year earlier. External PPG debt loans from multilateral, bilateral, and other foreign creditors was roughly US$2.2 billion, while domestic PPG debt reached approximately US$3.7 billion. Debt servicing costs also climbed to US$196.1 million in 2024, up from US$177.5 million the year before. Of that, US$124.9 million went to external debt service and US$71.2 million to domestic obligations. Government officials, however, frequently point to Guyana’s declining debt-to-GDP ratio, down from 47.4% in 2020 to 24.3% in 2024, as evidence that debt levels remain within prudent limits and that the country has room to borrow for strategic projects.
The Inter-American Development Bank Group (IDB Group) is the leading source of financing and knowledge for improving lives in Latin America and the Caribbean. It comprises the IDB, which works with the region’s public sector and enables the private sector; IDB Invest, which directly supports private companies and projects; and IDB Lab, which spurs entrepreneurial innovation. Meanwhile, the IsDB, rated AAA by the major rating agencies of the world, is the pioneering multilateral development bank (MDB) of the Global South that has been working for over 50 years to improve the lives of the people and communities it serves by delivering impact at scale. The Bank brings together 57 Member Countries across four continents, touching the lives of nearly 1 of 5 people worldwide.
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