Dr. Karen Abrams, founder and Executive Director of STEMGuyana and Pathway Online Academy has questioned the transparency of the Guyana Development Bank, calling for clear lending criteria, conflict-of-interest safeguards and public disclosure of who benefits from its US$100 million financing programme.
In an opinion piece published by Kaieteur News on October 4, Abrams welcomed the bank’s offer of zero-interest, collateral-free loans of up to G$3 million but warned that billions in public funds must be distributed under clear, transparent and accountable rules.
The bank began operations on October 5, backed by an initial G$20 billion capital injection announced by the Government. Abrams, who holds a Master of Business Administration (MBA) and has worked in corporate America, said the initiative could open financing opportunities for entrepreneurs overlooked by commercial banks, but argued that its success would depend on how decisions are made and whether the public can measure the results.
“But admiration for the idea should not replace scrutiny of the institution. A bank handling billions of dollars in public resources should be able to answer basic questions about how decisions will be made.”
One of Abrams’ concerns was the lack of publicly available information, at the time she reviewed the Government’s announcements, identifying the bank’s chairman, board and chief executive. The Government subsequently announced the board at the October 5 launch, naming Abu Zaman as chairperson and Kathy Smith as deputy chairperson.
Her broader concern is whether the bank’s governance arrangements, lending criteria and conflict-of-interest protections will be sufficiently transparent to maintain public confidence.
“A development bank is a fiduciary institution. Guyanese should know who is responsible for its decisions and what qualifications and conflict-of-interest safeguards govern those appointments.”
Abrams said prospective borrowers need more than general instructions to prepare business plans, provide identification and business registration documents, and satisfy Guyana Revenue Authority (GRA) and National Insurance Scheme (NIS) requirements.
Applicants should know precisely how proposals will be assessed, what documentation is required, how long decisions should take, how competing applications will be prioritised and whether rejected applicants can appeal.
She also called for quarterly publication of aggregate data detailing applications, approvals, rejections, loan values and processing times, broken down by region, economic sector and appropriate demographic categories, with safeguards to protect personal information.
The bank, she argued, should also track repayment rates, business survival, jobs created and the number of borrowers who eventually qualify for conventional commercial financing.
“That is how we distinguish money distributed from development achieved.”
Abrams questioned whether entrepreneurs in rural, riverine and hinterland communities would have meaningful access to the programme, particularly those facing unreliable internet connectivity, long travel distances or limited experience preparing business plans.
She cautioned that making financing available does not automatically mean that those most in need will be able to navigate the application process.
The bank must also guard against directing subsidised capital into markets that cannot support additional businesses, she said. Using poultry production as an example, Abrams warned that financing too many producers in an already adequately supplied market could leave borrowers competing for limited customers while undermining established farmers who rely on commercial loans or personal savings.
She called for credible market analysis before financing is channelled into particular industries, including assessments of demand, existing suppliers and potential sales opportunities.
Agro-processing, manufacturing, riverine transportation, tourism, technology and agricultural value chains were among the areas she identified as offering opportunities to address genuine gaps and expand productive capacity.
Abrams acknowledged that combining loans with mentorship and technical assistance could help entrepreneurs build sustainable businesses. However, she maintained that the bank’s performance must be measured by more than the amount of money disbursed.
“Publish clear lending criteria. Make the application process easy to find and understand. Establish strong conflict-of-interest protections. Measure who receives the financing and, more importantly, what happens to those businesses afterward.”
Her central challenge is whether the bank can demonstrate that its financing reaches entrepreneurs who have historically struggled to access capital, creates sustainable employment and strengthens businesses over the long term.
“US$100 million gives the Guyana Development Bank considerable capacity to change lives. From Monday [October 5] forward, Guyanese should be able to measure whether it does.”
