A new wave of Guyanese entrepreneurship moved one step closer to being unleashed today with the passage of the Guyana Development Bank Bill, piloted by Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh in the National Assembly. Enactment of this Bill would pave the way for the establishment of the much-anticipated Guyana Development Bank.
Highlighting the important role of local enterprises during his presentation of the Bill, Minister Singh emphasized that “small and medium-sized businesses have been the lifeblood of the Guyanese economy since time immemorial. These small businesses, in addition to providing essential goods and services, have proven over the decades and centuries to be an essential source of economic livelihood for Guyanese men, women, and families throughout the economic history of our country.”
The Guyana Development Bank delivers on an important PPP/C Manifesto promise, set to catalyse SME establishment and growth by providing zero-interest, zero-collateral micro-credit loans of up to $3 million, in addition to mentorship and training services. Reiterating the core mandate of the new legislation, the finance minister stated that “to ensure that the historic constraint again… that arises from lack of access to financing be removed once and for all, we have developed the Guyana Development Bank Bill—a bill that seeks to establish a development bank that will provide loans—small loans for SMEs in Guyana, loans of up to $3 million Guyana dollars, free of interest and free of collateral—loans that will help us to unleash a new wave of Guyanese entrepreneurship and entrepreneurialism in this Guyana’s era of opportunity.”
Under a co-financing mechanism, beneficiary SMEs and entrepreneurs would be able to unlock additional financing of up to $7 million at favourable interest rates. Notably, the Bank’s operational design would promote community development by facilitating the organisation of beneficiaries into clusters, offering opportunities for scaling, specialisation and risk management.
The move to establish the Guyana Development Bank forms an integral part of the PPP/C Government’s financial development and inclusion agenda. It comes at a time of robust growth in the nation’s financial sector, reflected in a more than doubling of both private sector credit and commercial bank deposits between end-2020 and end-2025, in tandem with a decline in non-performing loans from 10.8 percent to 1.3 percent.
Underscoring the progress made to date, Dr. Singh noted that “over the years, our government has implemented numerous initiatives aimed at ensuring improved and easier access to financing, and we have recorded tremendous success in this regard, not least as is reflected in the extremely strong growth in credit to the private sector that has been recorded over the years.”
The Development Bank is set to spur a massive scaling up of small business financing in Guyana, especially among historically constrained groups, including women, youth and persons with disabilities. It is also intended to serve as an instrument of economic diversification and sustainable growth, emphasising the provision of capital and critical business support services to a variety of economic sectors.
The Bank builds on a number of predecessor institutions and initiatives advanced by the PPP/C to improve access to financing by local businesses and provide economic empowerment for individuals and households. Included among these are: the Small Business Bureau, which has provided grants, disability loans, guarantees, training and other services to nearly 22,000 individuals from 2020 to current, to the tune of more than $2.7 billion; and a partnership with IDB Invest through which Guyanese businesses were able to access more than US$260 million in financing since 2020. In addition, the Local Content framework has allowed more than 1,200 registered Guyanese businesses to benefit from the procurement of over US$2 billion in goods and services across 40 sectors.
In accordance with the Bank’s legislative framework, strategic direction would be provided by a Board of Directors comprising between 5 to 9 members, suitably qualified across the areas of finance, economics, banking and law. The legislation enshrines the Board’s autonomy and latitude to execute broad management functions, as well as its institutional continuity. It addresses the issue of conflicts of interest among Directors, and codifies the principles of transparency and accountability. The Bank would be required to maintain financial records for examination by the Auditor General, and to present an annual report on its operations to the people and National Assembly of Guyana. The Bill also establishes appropriate risk management mechanisms to support the Bank’s operational sustainability.
The PPP/C Government remains firmly committed to providing the people of Guyana every opportunity to fully participate in the country’s ensuing economic transformation, with a view to promoting broad-based development and equitable wealth creation.
