PULL QUOTE: Establishment and the coming into operation of a credit bureau will significantly improve the ease with which persons and institutions will be able to access credit in Guyana.
THE Bank of Guyana yesterday presented Creditinfo Guyana Incorporated with the first license to carry out business as a credit bureau in Guyana, making the country the second Caribbean territory in which they will be doing so.

The licence was granted to Creditinfo with effect from July 15, 2013 and is in accordance with Section 6 (10) of the Credit Reporting Act No. 9 of 2010 in pursuance to Section 6 of that Act, and they will be open for business to the public from December 1st, 2013.
Delivering remarks at the event which took place at the Bank of Guyana, Avenue of the Republic, Georgetown, Finance Minister, Dr. Ashni Singh said that they believe that the establishment and the coming into operation of a credit bureau will significantly improve the ease with which persons and institutions will be able to access credit in Guyana.
He further stated that it will also improve the ease with which financial institutions will be able to verify credit worthiness and the cost and ease at which individuals will be able to access loans for the establishment and the expansion of small businesses.
According to Dr. Singh, this was the basis for the government taking to parliament in 2009-2010 the Credit Reporting Bill which subsequently became the Credit Reporting Act in 2010.
HISTORIC MILESTONE
The Finance Minister noted that the presentation of the first licence to carry out business as a credit bureau in Guyana is an extremely important and historic milestone in the development of Guyana’s financial sector, despite significant strides having already been made to modernise the country’s financial system.
He pointed out that they have long recognised the importance of bringing together the fact that financial institutions are looking for good lending opportunities and the fact that potential borrowers are looking for more affordable and easy access to financing.
Dr. Singh indicated also that while Guyana has a significant population who would have over the years established very strong credit track records, these persons have not taken the leap from the point of routine retail credit to borrowing from a licensed financial institution for the purpose of acquiring capital asset or establishing or expanding a business.
He noted that this is the gap that the establishment of a credit bureau in Guyana has the potential to address.
According to the Finance Minister, Guyana has a strong, well regulated, well managed financial system categorised by institutions that have extremely strong balance sheets and that comply with the strictest of standards, and have proven themselves over the years.
He took the opportunity to highlight that this is also as a result of the efforts made by the Bank of Guyana to ensure sound regulations.
However, Dr. Singh stated that they now recognise equally that there exists significant room for more efficient and broader intermediation for the financial resources held in financial institutions licensed in Guyana.
He pointed out that Creditinfo has gone through a highly competitive process and they were competing against worthy competitors and clearly they competed well and were able to surpass the other competitors in the evaluation process to attain the first license.
The Finance Minister thanked Creditinfo for their demonstrated interest in doing business in Guyana and the confidence that they have in the business environment in the country.
Dr. Singh welcomed them to Guyana, highlighting that they are introducing a brand new service to the financial system of Guyana which will literally empower thousands of Guyanese to be able to get their first bank loan.
He further stated that this is not only a business opportunity for Creditinfo, but it is also an opportunity to transform the lives of the individual Guyanese persons.
Meanwhile, one of the Directors of Creditinfo Guyana Incorporated, Mr. Kristinn Agnarsson assured that they will strive to ensure responsible lending and borrowing which is important for a growing economy like Guyana’s.
He further stated that they are delighted to have the opportunity to contribute to the efforts of the government to create a sound financial infrastructure, and they are extremely proud of this milestone.

WORLD CLASS
According to Mr. Agnarsson, the process leading up to this day has been quite extensive and they believe that Creditinfo is ready to serve with world class credit reporting services.
He informed that Guyana will be the 16th country in which Creditinfo is currently operating a bureau and noted that based on the framework that Guyana has in place now, the stage is set for a very successful venture.
Mr. Agnarsson highlighted that Creditinfo will enable easier access to credit for consumers, increased consumer satisfaction, more accurate information to make credit decisions, and good credit history will be rewarded over time and the interest rate could come down.
Also speaking on the occasion, Governor of the Bank of Guyana, Mr. Lawrence Williams said that the credit bureau is an innovation in the financial architecture of Guyana which they expect will contribute significantly to the growth of the economy.
He explained that the credit bureau project grew out of the financial sector assessment programme of 2005/2006 and the first economic summit of 2007, and both of these recommended the credit bureau amongst a menu of measures to improve access to capital.
According to him, the credit bureau is intended to compile the credit history of consenting consumers using information supplied by credit providers such as banks and trust companies.
Mr. Williams noted that access to readily available credit history of consumers provides benefits to the lending institutions, the consumers and the overall economy through behavioural changes in lending, borrowing and management of finances.
He explained that upon the enactment of the 2010 legislation, the Bank of Guyana invited six international credit bureau operators to submit requests for solution and four responses were received, which was shortlisted to two and then the Creditinfo International, a subsidiary of the Creditinfo group of Iceland was selected.
The Bank of Guyana Governor stated that the bank is satisfied that Creditinfo Guyana Inc. has met all the set criteria and accordingly consulted the finance minister on the issuance of a license to the entity.