MCC Board Approves Grant To Support Fiscal Reforms in Guyana
For Immediate Release
June 27, 2007
- Guyana (PDF)
Washington, D.C. — The Board of Directors of the Millennium Challenge Corporation today approved Threshold Program funding to help the Government of Guyana reduce its fiscal deficit by improving its ability to collect revenue and better manage its budget. In addition, MCC is helping Guyana develop a more favorable environment for businesses.
MCC’s Threshold Program is designed to assist countries that are on the “threshold” of eligibility for larger grant assistance known as “Compact” and have demonstrated a significant commitment to improving their MCC indicators.
MCC’s roughly $6.7 million grant will help Guyana improve its fiscal policies and create a more business-friendly environment. Specifically, the grant will help the Government of Guyana implement its new value-added tax system and develop ways to assist and educate taxpayers, while at the same time helping the government better plan and control spending. The grant will also help reduce the number of days and costs associated with starting a business by modernizing and streamlining the process to register businesses.
“The Government of Guyana has made a commitment to revamp its tax policies as well as reduce the cost and number of days it takes to start a business,” said Ambassador John Danilovich, Chief Executive Officer of the MCC. “We at MCC are pleased to help Guyana create an environment which will reduce impediments to economic growth and perhaps move it into Compact-eligible status.”
The U.S. Agency for International Development will oversee implementation of this Threshold program on behalf of MCC.
Millennium Challenge Corporation is a U.S. government corporation designed to work with some of the poorest countries in the world, is based on the principle that aid is most effective when it reinforces good governance, economic freedom, and investments in people that promote economic growth and elimination of extreme poverty.