–  evidence of private sector’s response to favourable environment
FINANCE Minister Dr. Ashni Singh said Government, recognising the need to maintain a strong financial system has, over the years, implemented the necessary policies and legislative framework to ensure that the system remains strong.

Addressing small and medium entrepreneurs during the eighth Annual General Meeting of the Small Business Development Finance Trust Inc. (SBDFT), which was held yesterday at the Tower Hotel, Main Street, Georgetown, Dr. Singh alluded to a very compelling statistic whereby total credit of the banking system to the private sector has grown from $52 billion in 2005 to $112 billion in 2010.

The annual meeting which serves as a method of strengthening the economic base of local businesses, through increased access to lending, technical support and non-traditional financial facilities, has paved the way for the establishment of over 10,000 businesses, since its inception in October 2002.
Minister Singh said that while the world has been faced with the effects of the global and economic meltdown, Guyana has boasted many successes, since its economy weathered the crisis, without traumatic consequences such as the ones observed in other Caribbean countries.

“The performance of Guyana’s economy is not only a function of Government’s policies but, an aggregate productive effort of all of the people of the country….the strength and stability of the economy should also be credited to every business, and citizen,” he said.
Dr. Singh added that over the years, the administration has also implemented the necessary policies and legislative framework to ensure that the country’s financial system remains strong.
In this regard, the National Assembly enacted several legislations such as, the Central Bank Act; Financial Institutions Act; Anti-money Laundering Act; Money Transfer Agencies Act and the Credit Reporting Act.
“I could even share with you statistics that show that, in response to this policy environment, the financial sector has been growing and people have been accessing credit increasingly. The most compelling statistics perhaps is total credit of the banking system to the private sector, which has grown from $52 billion in 2005 to $112 billion in 2010,” Dr. Singh said.
This, he said, is also evidence of the private sector responding to the favourable environment created under a dynamic and vibrant economy. He also lauded the institution, noting that its record over the years has proven the organisation has much to celebrate and be commended for.
While lauding it for its sustained growth performance over the years, Dr. Singh said that the financial institute has provided a success story of what can be achieved by small businesses.
“Even as I speak of legislative interventions made by our Government, which has seen a steady growth of our economy, the real success story that we gather to celebrate is the success story of the individual borrowers and clients,” he told those gathered at yesterday’s AGM.

Dr. Singh, in his presentation, called to mind the ‘extremely traumatic, economic and financial episode’ that recently plagued the world with consequences not sparing the Caribbean. He said Guyanese should consider themselves relatively fortunate for being able to come out of this crisis without the kind of traumatic consequences that other Caribbean countries experienced.
He stressed that the performance, strength and stability of the Guyana economy is not only a function of government policy, but ultimately the aggregate of the productive effort of all in the country.
He noted, too, that the fact that Guyana’s economy continues to grow and is stable over the past five years is something to be celebrated.
“This institution has much to celebrate and much to be commended for,” he said of SBDFT.
The minister said it is possible for a large business to be built from small beginnings. “It would be easy to look at the Gafoors’ empire or the Kissoons’ empire, the big businesses…and say that that is not achievable.” However, with hard work, perseverance, discipline and a willingness to take risks, borrow, invest and reinvest, he said this can be accomplished.
Minister Singh also recalled that as part of its emphasis on small business development, government last year went to Parliament with a special facility to support small business lending by established banks.
Consequently, he said, many success stories emerged from the Women of Worth (WOW) facility that has, to date, lent almost $200M to approximately 1,000 clients. “We’ve been careful, as a government, to put in place a policy environment that is conducive to private sector growth. We’ve been extremely pleased to see the private sector in Guyana respond to that policy environment.”
Singh said the government is optimistic that this kind of growth will continue as the private sector keeps on responding.

Prime Minister Samuel Hinds, who also graced the occasion, spoke of the importance of successful business management, noting that this has, over the years, played a major part in the growth of businesses.
He added that for a nation to succeed, citizens must be serious with respect to the day-to-day management of businesses, noting that the Administration has over the years shown its commitment to the business sector with the passing of the Micro Financial Bill in Parliament in 2010.
This, he said, has encouraged the Banking Sector to invest in Small and Medium Enterprises which has created an enabling environment for growth and development of Small and Medium Enterprises.
Meanwhile, Chairman of SBDFT, Sattaur Gafoor in delivering the institution’s 2010 report, said that despite a testing year for the institute, financial loans increased by 22 percent, as it provided funding for over 685 micro and small loans, compared to 652 in 2009. These were in the developmental, consumer, housing and micro loans.
“Among many achievements, the company was able to generate a surplus of $17.6M for 2010, in spite of heavy interest cost. All these show that SBDF has grown into a strong institution with a capacity to honour its financial as well as developmental obligations,” Gafoor said.
The institute also honoured several successful entrepreneurs who have contributed to the growth of the institute over the years including;- Krishnan Jugdeo; Mohamed Khan; Mohamed Ramjohn; Cheryl Brandt; Courtney Stanton; Suknanan Rajaram; Certial McAllister; Sumintra Singh; Michael Harisingh; Nalini Singh; Sasenarine Geetram and Benjamin Todd.
Lyla Kissoon, Managing Director of Kissoon Group of Company was also awarded for her outstanding contribution to nation building. (GINA)