Govt to examine establishment of junior stock exchange – Pres. Ali

President Dr Irfaan Ali today underscored the importance of establishing a modern stock exchange as part of broader efforts to modernise Guyana’s financial sector.

He made the remarks today during a breakfast brief hosted by the Georgetown Chamber of Commerce and Industry (GCCI) under the theme “Power Guyana’s Future: Guyana’s Path to Sustainable Development”.

“The creation of a modern stock exchange and options for capital mobilisation. Many people are speaking about diaspora bonds and all of this. All of these options will be examined,” the president noted.

The Head of State noted that the government is also mulling the establishment of a junior stock exchange, which is a type of stock market specifically designed for smaller or emerging companies to raise capital, often under less stringent regulatory requirements than those of a main or senior stock exchange.

Vice President Dr Bharrat Jagdeo had previously noted that the Guyana Government is prepared to support the modernisation of the Guyana Stock Exchange (GSE), but had reminded that it is a privately-owned mechanism. He had noted that while government is committed to ensuring that it is revamped, the onus is on the stakeholders to do their part.

There are only about 15 local companies with publicly listed shares. Some public companies with the stock exchange market are Banks DIH, Caribbean Containers, Citizen’s Bank, Demerara Bank, Demerara Distillers Ltd, Demerara Tobacco Company, Guyana Bank for Trade and Industry (GBTI), Guyana Stockfeeds In, JP Santos and Sons, Property Holdings Inc, Republic Bank Ltd, Rupununi Development Company Ltd and Sterling Products Limited.

The GCCI has previously called for an overhaul of the GSE. With access to financing being a major hurdle for many businesses in Guyana, GCCI said the GSE has a significant role to play in facilitating a transparent and efficient marketplace for companies to raise capital, invest, and grow.

Govt prepared to support Stock Exchange modernisation – Jagdeo