Senior Minister in the Office of the President with responsibility for Finance and the Public Service, Dr. Ashni Singh, is urging Guyana’s commercial banks to adapt to the country’s modern economic realities by embracing reforms that allow the use of movable property as collateral in lending.
Speaking at a recent engagement, Dr. Singh stressed the importance of financial institutions evolving alongside the fast-paced growth of Guyana’s economy.
He said that while the banking sector has historically played a stabilising role, the time has come for a more proactive and flexible approach to financing, particularly for small and medium-sized businesses.
“The banking sector has historically been conservative, erring on the side of caution, which is not necessarily a bad thing,” Dr. Singh acknowledged. “We want strong banks and strong balance sheets. We want them to maintain good-quality portfolios. But there is room, I believe, for the banking sector to be more aggressive in providing financing to the Guyanese private sector.”
According to the Minister, limited access to finance remains one of the biggest constraints facing entrepreneurs.
He explained that the government has already undertaken significant work on the policy side to make credit more accessible, including the introduction of legislation that supports the use of movable assets as loan collateral.
“We enacted that legislation. It’s in force,” Dr. Singh stated. “We’ve also been working with the sector to enable them to do more, such as accepting more financial assets like receivables that can be pledged and invoices that can be factored or discounted, which is the standard technology in the most sophisticated market systems.”
The Moveable Property Security Act passed in 2024, allows for a broad range of assets—such as machinery, inventory, vehicles, crops, receivables, and even intellectual property—to be used as collateral.
This was complemented by the establishment of an Electronic Collateral Registry at the Commercial Registry, which aimed to support the practical implementation of the law.
Dr. Singh noted that while some banks have begun to respond to the legislative changes, their pace of adoption has not kept pace with the urgency of the economic moment.
“So, we’ve made sure to develop laws. We want to see more take-off of this,” he said. “The legal framework is in place. Banks now need to respond to that legal and regulatory framework and step out a little bit from their historic comfort zone, which is almost a risk-free lending model secured by real estate.”
He reiterated that this shift is not merely encouraged but necessary if the financial sector wishes to remain relevant and competitive in an economy that is rapidly diversifying.
“It’s happening,” the Minister observed. “But it’s not happening as quickly as we would like to see it happen.”
Dr. Singh concluded by stating that the government will continue to closely monitor the situation and elevate the matter in its priorities over the next five years. “The frameworks are there already. It’s really a question of how banks respond to it,” he said.
The People’s Progressive Party/Civic (PPP/C) government is spearheading efforts to modernise Guyana’s banking sector by promoting digital transformation, enhancing regulatory frameworks, and encouraging innovative lending practices.
