A release issued by BOG stated: “We have noted that the Bank of Guyana’s (BOG) response to the blog, earlier this year with regards to a ‘bail out request’ from the Guyana Bank for Trade and Industry (GBTI) has resurfaced in the form of a guest business column by Mr. Robert V. McRae in the Sunday, April 12, 2009 edition of the Stabroek Newspaper.”

“The BOG wishes to reiterate that it had not been approached by GBTI for a ‘bail out’ since that bank held and continues to hold adequate liquid assets and reserves. From time to time, licensed financial institutions may approach the BOG or indeed source among themselves overnight/shorterm support to cover temporary excess cash requirement. Such support, in the case of the BOG, is carefully analyzed and where approved is generally collaterized by marketable securities. Transactions of this nature are normal between the central bank and licensed depositary institutions and indeed among participants of the inter-bank market and therefore cannot in any way, be actuated with the sensational ‘bail out’ claim,” the release added

It also said that the aforementioned article refers to the shortfall in reserve requirement by the GBTI at the end of 2008. Contrary to the views expressed, the shortfall was organized by the BOG in order to complete an approved transaction.

“There is absolutely nothing irregular or unusual about the actions of the BOG or GBTI in this regard since a temporary shortfall in reserve balance may be allowed with or without penalty at the discretion of the BOG. Readers have been apprised that such shortfalls are very isolated cases and in this instance was reversed in two business days and organized as agreed,” BOG stressed.

“The Bank wishes to put this matter to rest by reaffirming that GBTI is highly liquid and profitable and a well managed institution,” the release said