Government has begun moving ahead with plans to establish the long-promised Guyana Development Bank, an institution intended to ease the longstanding financing hurdles faced by small and medium-sized enterprises (SMEs).
The update came from Minister of Tourism, Industry and Commerce, Susan Rodrigues, during Tuesday’s Committee of Supply, where WIN Member of Parliament Tabitha Sarabo-Halley queried whether new legislation would be required to operationalise the bank.
Minister Rodrigues confirmed that the bank will be created as a legal entity, with the Attorney General’s Chambers currently preparing the necessary legislation. She reminded the House that the initiative forms part of the administration’s 2025 manifesto commitments.
In the current budget, Government has set aside an initial US$100 million towards the bank’s capitalisation, representing the first tranche of a US$200 million pledge. According to the minister, the allocation is expected to be utilised before year-end, in keeping with the work plan, as authorities move to have the institution up and running as early as possible.
The Development Bank is expected to provide collateral-free and interest-free loans of up to $3 million to qualifying businesses. Beneficiaries may also be able to access a further $7 million through commercial banks at preferential rates, under arrangements being finalised.
However, the minister made it clear that the institution’s role will not be limited to lending. It will also assist entrepreneurs with proposal writing and business development, offering training and upskilling programmes aimed at building stronger, more sustainable enterprises.
The broader policy direction was first outlined by President Dr. Irfaan Ali in 2025, when he announced plans for a special incentive regime to push commercial banks to expand lending to the SME sector. Under that framework, banks would be encouraged to reduce interest rates to below four per cent and relax collateral requirements, similar to incentives offered in the housing sector.
Vice-President Dr. Bharrat Jagdeo has since explained that the concept of a development bank arose from years of public consultations and engagements, which repeatedly highlighted limited access to capital as a major constraint on business growth. Government, he said, is also working with the wider banking sector to introduce additional financial instruments, such as invoice discounting, to improve liquidity for businesses.
For entrepreneurs who are unable to meet traditional commercial banking requirements, the new Development Bank is intended to serve as an alternative avenue for financing, supporting broader national economic expansion.
