Dear Editor,
As discussions on development banking in Guyana continue, it is important to point out that there will be a significant demand for trained staff in the development bank. In this letter, I will only describe the work and skills training that was required by the credit officers in the credit department during the existence of GAIBANK.
Training in project analysis was a critical requirement because staff members in the credit department had to conduct feasibility studies for different kinds of projects. For example, they had to examine loan requests for short-term loans (less than 2 years for repayment); medium-term loans (2 to 5 years); and long-term loans (up to 10 years) for rice, sugar-cane, food crops, livestock, and inshore/offshore fishing.
This required credit staff who were trained in Agricultural Science at the Guyana School of Agriculture, or at the University of Guyana, Faculty of Agriculture. Consequently, employing trained agriculturalists formed an important connection with the farmer, who could converse with someone who was knowledgeable of the science behind his farming activities. Building on this agricultural knowledge, these skilled employees were further trained in financial and credit analysis and project supervision associated with the agricultural projects identified above.
Other skilled workers, including engineers, economists and persons with a business background, were also trained in non-agricultural project appraisal and supervision both in GAIBANK and at the Caribbean Development Bank. Additionally, Project Consultants from the Inter-American Development Bank also mentored staff working on non-agricultural projects, such as logging/sawmilling, food processing and milling, gold mining, quarrying, wood, metal, plastic, rubber, leather, ceramic, and garment manufacturing, among other economic activities.
It should be noted that no credit was provided for the purchase of properties, passenger automobiles, payment of taxes, rent, dividends, shares, stocks, bonds, purchase of land or buildings for residential use or for the refinancing of debt. Furthermore, loan approval had nothing to do with a client’s social, racial, religious, or political affiliation, but only with whether a project and loan request submitted by a client was in support of a financially viable project.
A second requirement by GAIBANK was the decentralized credit system that had offices and staff stationed in or assigned to nine of the ten Administrative Regions in Guyana. This allowed GAIBANK to manage a successful credit program with full and part-time branch offices in the following Regions:
Region 1: An office at Kumaka.
Region 2: Offices at Anna Regina, Charity, and Onderneeming.
Region 3: Offices at Wakenaam, Leguan and Parika.
Region 4: Head Office in Kingston, Timehri, Cane Grove, and Kuru Kururu.
Region 5: An office at Onverwagt.
Region 6: Offices at Tain, New Amsterdam; and the Corriverton District Council.
Region 7: An office at the Bartica Regional Office.
Region 8: Managed from Head office; only a few gold projects.
Region 9: An Office at Lethem.
Region 10: Offices at Linden and Ebini.
Credit officers operating in the community reduced transaction costs for farmers and borrowers, who did not have to travel to Georgetown to complete loan applications or conduct project business. Additionally, credit officers in the regions strengthened project supervision, as well as assisted in building coordination with input suppliers and buying agents for farmer’s produce and other final goods.
Furthermore, being able to interact with the regional administration and knowing the work schedule for infrastructure maintenance, among other public service events, were also important for policy coordination as well as project appraisal and supervision.
GAIBANK had a well-defined organisational chart with different levels of authority, and accountability to the Board of Directors through the General Manager. Additionally, there was a set of rules of engagement with the applicants and borrowers, along with the separation of responsibilities that were merged with different levels of authority and accountability.
It was expected that there would be a timely delivery of decisions with the relevant justifications, requirements and conditionalities for loan approval. When loan applications were approved or rejected, the justification for the decision had to be clearly defined. If there were violations of any kind, immediate reviews by the internal audit and legal departments were undertaken and their findings were submitted to the General Manager for corrective actions to be taken.
In conclusion, and in keeping with the role and function of GAIBANK, it was very well understood that nothing successful could be completed in developing banking in Guyana without skills training, and a decentralized credit system. Believing otherwise would be counterproductive.
Yours truly,
Dr. C. Kenrick Hunte
Professor and Former Ambassador
