Guyana: Critics Call For Guyana Development Bank Bill To Be Sent To Special Parliamentary Select Committee

Initial public excitement surrounding the proposed Guyana Development Bank (GDB) has shifted into intense legislative scrutiny, with prominent economists and opposition lawmakers demanding that the governing bill be sent to a Parliamentary Special Select Committee to address what they describe as high-risk statutory ambiguities. The foundational framework for the banking institution was tabled on June 5, 2026, by Dr. Ashni Singh, Senior Minister within the Office of the President with responsibility for Finance.

While the government initially marketed the facility as offering zero-interest, non-collateral loans of up to $3 million for small businesses, a close examination of the draft legislation has led to significant pushback from analysts and political commentators. The controversy primarily revolves around Section 5(2)(a) of the Bill, which states: “Subject to the other provisions of this Act, the Bank may—(a) assist small and medium-sized enterprises in establishing, carrying on or expanding their operations by providing loans with or without collateral and with or without charging interest.”

Critics argue that the language does not establish the zero-interest, no-collateral model as a statutory right. Instead, it grants the bank discretionary power to determine lending terms without clearly defining which commercial sectors may face interest rates or asset-backed requirements. Dr. C. Kenrick Hunte, a university professor and former Guyana Ambassador to South Africa, expressed concerns that the current draft could turn a $40 billion capitalized development bank into an unsustainable, taxpayer-funded welfare agency.

In his commentary, Dr. Hunte noted that the loose phrasing creates conflicting lending models. He emphasized that traditional banking relies on interest income and collateral to mitigate risks, while the proposed model appears to abandon these principles. He suggested integrating safeguards like “Assignment of Sales” agreements to tie loan repayment to borrowers’ verified revenue streams.

Political analysts have also pointed out a significant eligibility loophole in the bill, as it does not explicitly designate Guyanese citizens as the primary beneficiaries of the fund. Consequently, foreign nationals operating small or medium-scale enterprises in Guyana could qualify for the concessional financing. A Partnership for National Unity (APNU) Member of Parliament, Ganesh Mahipaul, confirmed that while the political opposition supports the establishment of a national development bank, they will oppose any implementation process that lacks thorough vetting.

Mahipaul stated, “We see that there is some very intellectual discourse going on with the Guyana Development Bank Bill, and that may also need to go to a special select committee.” He emphasized that detailed multi-stakeholder review within a select committee is essential to protect public finances from potential losses, adding, “The devil is oftentimes in the details.” He concluded that each clause in the bill should be refined to ensure robust legislation that can withstand scrutiny and gain unanimous support.

Source: hgptv.com

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