–President Ali tells Jamaica stock exchange conference
–says Caribbean region needs proactive financial response to address specific needs, global crises

PRESIDENT, Dr. Irfaan Ali, on Thursday, said that the Caribbean region is faced with many developmental crises, and to effectively cross those hurdles, the region would need a modern financial system.

The Guyanese Head of State made this charge during a virtual address to the Jamaica Stock Exchange’s 18th regional investment and capital market conference.

Guyana and the rest of the region, he said, operate in a global environment which faces challenges related to inflationary pressures, food crises, climate crises, and energy crises, among other things.

“[To address those challenges] the first proposition is that the Caribbean financial sector needs to play a more instrumental role in mobilising capital to fill the region’s financial gaps,” Dr. Ali said.

He added: “An open invitation is extended to Caribbean financial institutions to come to Guyana and to explore the opportunities available. We are just as keen to partner with regional institutions as we are forging international partnerships.”

The Head of State said that, while Guyana’s oil and gas sector has become a new frontier for economic development, the country still lacks the financial support to develop its petroleum industry.

And while Guyana has set out to foster partnerships with major international economies, he related that regional financial institutions must become more aligned to address the concerns of food security, climate change and the expansion of the petroleum industry in the region.

“Without investment, our region’s energy and food security plans will flounder… the region’s financial systems, therefore, must take account of the development plans of the region and I think the regional financial system also must be able to proactively respond to the needs of the region, and we cannot do so without combining our efforts,” Dr. Ali said.

The President warned that strong regulations and oversights will be needed to safeguard the growth of economies and investors.

“Securities and capital markets need strong regulation and oversight in order to protect investors. Experiences around the world forewarn us that the need for strong regulation, due diligence and oversight of financial institutions is critical,” the Head of State said.

He related that the region has to be prudent and avoid exposing investors and depositors to extreme risk of implosion by financial institutions, in its quest to advance the financial sector.

CAREFUL MANAGEMENT
“Guyana has been careful with the management of its financial sector. A short while ago, we came in for some criticisms for denying the buyout of a certain financial institution by a major regional bank,” Dr. Ali said.

The President was referring to an attempt by Scotiabank to sell its Guyana operations to the First National Bank.

The bank first tried to sell to Republic Bank Limited and then to the First Citizens Bank Limited – both Trinidad and Tobago banks.

However, in June of 2022, the agreement of sale of its banking operations in Guyana to Trinidad’s First Citizens Bank Limited was terminated in accordance with the terms of the agreement.

“We are mindful of the risks involved in allowing any one institution to have an inordinately larger share of the sector, which can expose us to risks. The diversity and spread of risks have always acted as insurance to protect investors,” Dr. Ali said.

As it relates to Guyana specifically, he noted that the aim is to promote the country as a premier destination for industrial and manufacturing development, while also promoting the traditional sectors.

“We are seeking partnerships not only to develop our oil and gas sector, but also to modernise our traditional sectors such as agriculture, gold, diamond, bauxite, manganese mining, and forestry,” Dr. Ali said.

He added: “Guyana is also set to become the energy and industrial capital of the region, a regional food engine, an eco-tourism destination, a major aquaculture producer and the Mecca of regional cricket. These are our ambitions from which we are not shirking.”

President Ali affirmed that Guyana’s development is not confined to oil and gas.

He posited that the country has the potential to become the financial epicenter of the Caribbean; however, the region must form consortiums with its private sector community.

“Given our own development and given the projections of development, our financial sector will continue to expand. Our financing needs are great and we are looking for win-win partnerships.

“As this is a conference dealing with investments and capital markets, I want to emphasize the importance of financial markets to Guyana’s, and the region’s development,” Dr. Ali said.

Guyana is currently hosting Jamaica’s Minister of Industry, Investment and Commerce, Senator Aubyn Hill, along with a Jamaican business delegation.