A team has been established to accelerate the launch of the zero-interest development bank for Small and Medium Sized Enterprises (SMEs), according to President Dr Irfaan Ali.
The development of this institution was revealed by the Peoples Progressive Party Civic (PPP/C) on the campaign trail. Dr Bharrat Jagdeo, the country’s Vice President and General Secretary of the PPP/C, had explained that the bank would be a State-led initiative.
Providing an update during his press conference on Tuesday, President Ali said the team has been tasked with developing an appropriate model for this bank.
“Their work will comprise of reviewing global experiences, established SME development financial institutions; outlining the legal framework or context within which the institution will be established, defining the institution’s administrative and financial structures that will be needed to support this initiative,” the president outlined.
He said feedback is expected in about six weeks.
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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