The legal process to bring the Guyana Development Bank into operation has advanced with the signing and gazetting of a Commencement Order by Senior Finance Minister Dr. Ashni Singh.
Singh signed the order on Wednesday, formally activating the relevant provisions needed for the new state-backed financial institution to begin operating.
The development follows the passage of the Guyana Development Bank Bill in the National Assembly on July 27 and its subsequent assent by President Dr. Irfaan Ali on July 30. The legislation provides the legal framework for the bank’s establishment and operations.
With the Commencement Order now gazetted, the bank is moving closer to formally opening its doors on October 5.
The Government plans to inject an initial US$100 million, or approximately G$20 billion, into the institution at start-up. That amount represents half of the bank’s authorised capital of $40 billion.
The bank is being established to expand access to financing for small and medium-sized enterprises and entrepreneurs, particularly women, young people and persons with disabilities.
Under the proposed lending structure, eligible borrowers will be able to access up to $3 million at zero interest and without collateral. Training and mentorship will also be offered alongside financing.
Borrowers may also be able to access up to G$7 million in additional financing through co-financing arrangements with traditional financial institutions.
The Development Bank will be governed by a board with expertise across areas including finance, banking, economics and law. Its financial records are to be audited annually by the Auditor General, while reports on its operations will also have to be presented to the National Assembly.
The Government has identified sectors including agro-processing, manufacturing, tourism, services and technology among those expected to benefit from financing through the institution.
President Ali had announced earlier this week that the bank is scheduled to begin operations on October 5 with the US$100 million capital base.
