Vice President Dr Bharrat Jagdeo announced today that the Guyana Government is working towards launching the zero-interest development bank for small and medium sized enterprises (SMEs) next year.
The development of this institution was revealed by the Peoples Progressive Party Civic (PPP/C) on the campaign trail in the lead up to the September 1 General and Regional Elections.
After winning the elections, a team was established by President Dr Irfaan Ali to accelerate the launch of this initiative.
VP Jagdeo told reporters during a press conference today that work has already started on the concept paper and funding for the project should be included in the 2026 Budget, which he said will be presented early next year.
He further noted that the goal is to ensure the bank is fully established and functional before the end of next year.
In emphasising the importance of this initiative, Jagdeo highlighted the many Guyanese have great business ideas but lack financing to either start or grow their ventures.
Apart from the zero-interest development bank, he noted that the government will work with the commercial banks to open up avenues for access to financing.
“We will ensure that the formal banking system is reformed in a way that they can have easier access to capital and at greater magnitudes. We will work with the banking system to develop a range of instruments from discounting trade invoices to project financing to commercial bank financing that would allow Guyanese to better use the banking system to support their businesses and we will also, as promised, create this development bank for the group of people who may not have access to the commercial banks so that they too can realise the benefits and opportunities…,” he stated.
It was previously reported that this development bank would not only offer zero-per cent interest, co-financing and support access to liquidity, but will reduce the cost of borrowing and remove the collateral requirement which are burdensome to SMEs.
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