The legal framework for Guyana’s proposed Development Bank is in its final stages, with the draft legislation already completed and now under technical review before it is sent to Parliament.
That is according to Attorney General and Minister of Legal Affairs Anil Nandlall, S.C., who said the institution will be established through a formal Act of Parliament rather than by any temporary administrative arrangement.
Speaking on his Issues in the News programme, Nandlall explained that the proposed law sets out the bank’s governance structure, operational rules and overall mandate as part of the government’s broader plan to widen access to financing.
He said the draft was prepared after examining development banking models from several jurisdictions, including Trinidad and Tobago, Jamaica, Botswana, Nigeria, and Singapore.
According to Nandlall, elements from those systems were studied and adapted to create a model tailored to Guyana’s own needs.
The Attorney General said the bill has already been handed over to President Dr. Irfaan Ali, who has since sent it to a team of technical experts for review.
Once that process is completed, the legislation is expected to be taken to the National Assembly, paving the way for the bank to begin operations shortly afterwards.
Nandlall said the new institution is intended to fill a major gap in the financial system by helping people who are often unable to access loans through conventional commercial banks.
He noted that the bank is expected to focus on small and medium-sized ventures, particularly in areas such as agro-processing, small-scale manufacturing, poultry rearing, furniture production, craft industries and related business activity.
The Development Bank is expected to begin with an initial capital base of US$100 million.
Nandlall said the plan is for it to offer loans of up to about $3 million without interest and without requiring collateral, making it easier for ordinary Guyanese to start or expand businesses.
He added that the bank is also expected to work alongside existing commercial banks in some cases, co-financing projects that could allow borrowers to access larger sums of up to $10 million.
The Attorney General urged potential applicants to begin preparing early by organizing their documents and thinking through their business proposals.
While he said the requirements are not expected to be overly burdensome, he stressed that the institution will still have to meet proper standards of accountability and transparency.
Nandlall said the Development Bank is one of the initiatives aimed at ensuring economic opportunity is spread more widely across Guyana, rather than being concentrated only among those who already have access to capital.
