The long-promised Guyana Development Bank is set to move a step closer to becoming a reality, with legislation for its establishment among six bills scheduled to be introduced in the National Assembly this week.
Attorney General and Minister of Legal Affairs, Mohabir Anil Nandlall, announced during his Issues in the News programme that the Guyana Development Bank Bill will be tabled and read for the first time when the National Assembly meets on June 5.
According to Nandlall, the creation of the bank fulfills a commitment made by the PPP/C during the 2020 General and Regional Elections campaign and is intended to address longstanding challenges faced by many Guyanese in accessing financing.
“You would recall that in our manifesto and on the elections campaign for the September 1 regional general elections the PPP civic party promised the establishment of a development bank,” he said.
The Attorney General explained that many individuals have struggled to obtain loans because they cannot provide the collateral required by traditional lending institutions, meet interest obligations, or satisfy other lending requirements.
“This development bank is intended to address that class of persons and those issues that those persons confront, which have prevented them from accessing easy finances,” he stated.
Nandlall said the institution is specifically designed to support small and medium-sized businesses and aspiring entrepreneurs, including small-scale manufacturers, farmers, restaurant owners, daycare operators, fabricators and contractors.
He noted that the bank will not only provide financing but will also offer guidance to applicants throughout the process.
“The bank’s staff will work with you in preparing your loan application, advising you on how to prepare the relevant documentations to qualify you for the loan,” Nandlall said.
He added that bank officials will also mentor borrowers and assist them in managing and growing their businesses.
Under the proposed framework, loans of up to $3 million will be available without interest and without the need for collateral.
“The loans will be up to $3 million maximum. It would be interest free, and no collateral is required, no collateral security is required,” the Attorney General explained.
Borrowers will still be required to outline how the funds will be invested and repaid, with assistance available from the bank’s staff.
Nandlall further revealed that businesses that successfully utilise the initial financing and require additional capital could gain access to larger sums through partnerships with commercial banks.
“The bank will also have a facility available where the bank will engage in bridging financing with commercial banks and to have available to you access to nearly to up to $10 million as a second loan, should your business expand and you require additional financing,” he said.
The Attorney General said the legislation will establish the bank as a corporate body operating under the Financial Institutions Act. It is expected to begin with a capital base of approximately $200 million and will be managed by a board.
Nandlall encouraged citizens across the country to take advantage of what he described as a major opportunity to start or expand their businesses.
