The Guyana Development Bank is poised to advance towards establishment with the introduction of its legislation among six bills 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 convenes on June 5.
Nandlall indicated that the creation of the bank aligns with a commitment made by the PPP/C during the 2020 General and Regional Elections campaign, aimed at addressing the challenges many Guyanese face in accessing financing. He noted that the party had promised the establishment of a development bank in their manifesto.
The Attorney General elaborated that numerous individuals have encountered difficulties in securing loans due to the inability to provide collateral required by traditional lending institutions, meet interest obligations, or fulfill other lending criteria. He stated, “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.”
The institution is designed to support small and medium-sized businesses and aspiring entrepreneurs, including small-scale manufacturers, farmers, restaurant owners, daycare operators, fabricators, and contractors. Nandlall mentioned that the bank will not only provide financing but also guidance to applicants throughout the process.
- The bank’s staff will assist in preparing loan applications.
- Guidance on relevant documentation will be provided to qualify for loans.
- Officials will mentor borrowers in managing and growing their businesses.
Under the proposed framework, loans of up to $3 million will be available without interest and collateral. Borrowers will need to outline how the funds will be invested and repaid, with assistance from the bank’s staff. Nandlall also noted that businesses that successfully utilize initial financing may access larger sums through partnerships with commercial banks.
The bank will engage in bridging financing with commercial banks, allowing access to nearly $10 million as a second loan for expanding businesses. The legislation will establish the bank as a corporate body operating under the Financial Institutions Act, starting with a capital base of approximately $200 million and managed by a board. Nandlall encouraged citizens to take advantage of this opportunity to start or expand their businesses.
Source: snn.gy
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