Guyana’s long-awaited Development Bank is moving closer to becoming a reality, with an initial US$100 million already set aside in the 2025 budget to kickstart the institution aimed at supporting small and medium-sized businesses.
Minister of Tourism, Industry and Commerce Susan Rodrigues confirmed that work is under way to operationalise the bank, which is expected to provide collateral-free and interest-free loans to SMEs.
Her comments came during Tuesday’s Committee of Supply, after WIN Member of Parliament Tabitha Sarabo-Halley questioned whether legislation must be passed before the bank can officially begin operations.
Rodrigues explained that the Development Bank is a key government commitment from its 2025 manifesto and will be established as a legal entity. She noted that the Attorney General’s Chambers is currently working on the necessary legislation.
The minister said the US$100 million allocation forms part of a wider US$200 million capital pledge, and highlighted that access to finance has long been one of the biggest challenges facing small businesses across Guyana.
Once operational, the bank will offer loans of up to $3 million without interest or collateral. Beneficiaries may also qualify for an additional $7 million in financing through commercial banks at preferential rates.
Rodrigues added that the institution will not only provide funding, but will also assist entrepreneurs with proposal writing and offer training and upskilling programmes to help businesses become more sustainable.
She noted that the initial US$100 million must be expended before the end of the year under the government’s work plan, and said the bank will be operationalised at the earliest opportunity.
President Dr Irfaan Ali has also previously stated that a special incentive regime will be introduced to encourage commercial banks to increase lending to SMEs, similar to incentives used in the housing sector. In return, banks would be required to reduce collateral demands and lower interest rates to below four percent.
Vice-President Dr Bharrat Jagdeo has said the concept of a development bank emerged from years of consultations and discussions with citizens nationwide, leading the government to prioritise easier access to capital for businesses.
He added that the government is also working to modernise the wider financial sector, including developing new tools such as trade invoice discounting to help Guyanese businesses better use the banking system.
The Development Bank is expected to serve as an alternative financing route for entrepreneurs who may not qualify for traditional commercial bank loans, helping more citizens take advantage of national economic opportunities.
