-engaging both local, international players
-Dr. Jagdeo says

AIMING to strengthen Guyana’s financial sector and bring more sophistication, the government has been engaging local and international players to create avenues for new opportunities.

This is according to People’s Progressive Party (PPP) General Secretary and Guyana’s Vice President, Dr. Bharrat Jagdeo.

Dr. Jagdeo, during his weekly news conference last Thursday, told reporters the government was keen on engaging new entrants to the market. However, it remained cognisant of global financial trends.

There have been ongoing challenges facing the banking sector in the Caribbean, particularly in light of the global de-risking trend that has seen many international banks exiting the region.

“A lot of the banks, through the de-risking programme, exited the region. You know, the region has lost many of their correspondent banks. Many of them are just selling out and moving out of the region,” Dr. Jagdeo explained. He went on to emphasise that the exit of these institutions is a global concern, particularly for smaller nations like Guyana.

Guyana, however has managed to maintain important relationships with U.S.-based correspondent banks, which has helped stabilise its financial system. But Jagdeo also acknowledged that the country is not immune to the broader trends affecting global banking operations.

“We’ve been lucky that we’ve been able to still maintain good correspondent relations with U.S. institutions,” he said, while underscoring the critical role these partnerships play in facilitating international transactions and investments.

Dr. Jagdeo revealed that the government has been in discussions with Citibank and the financial giant has shown interest in establishing a representative office in the country.

This office Jagdeo explained, would allow Citibank to offer loans to Guyanese businesses thereby contributing to the country’s economic growth.

“We had discussions with Citi about the possibility of having a commercial bank here, and they told us they’ve exited the entire retail banking in the entire Latin America. The only place they had a presence in was in Mexico, and I think they may exit that too. So that’s retail banking, but they’re still open to a representative office here in Guyana,” Dr. Jagdeo said.

Those discussions are ongoing, and the Vice President is optimistic about the potential for new entrants into the market.

Meanwhile, he noted that the government was taking proactive steps to ensure a more robust and diverse financial sector. Jagdeo revealed that upcoming legislative changes aim to ease credit access for businesses, particularly through reforms to the country’s collateral laws.

“Soon there’s going to be a piece of legislation going to Parliament that would allow them to use more movable collateral to securitise loans, and it’s going to Parliament soon, “he explained.

The new legislation is expected to open doors for local businesses that may otherwise struggle to secure financing.

By expanding the range of collateral that can be used to back loans, Guyana’s financial system will be able to support a broader array of businesses and entrepreneurs, particularly in sectors like agriculture, mining, and services.

Dr. Jagdeo also touched on the importance of deepening financial sector development through technology. “To deepen the financial sector and bring more sophistication, we’ll work with the local players, create opportunities, and try to get new entrants into the market,” he stated.

As part of these efforts, the government was looking to leverage digital tools like biometrics and other digital innovations to improve access to credit and streamline financial services.

“We expect that by digitisation, biometrics, and moving to a digital society, we may be able to better intermediate credit in the future and have a faster way of doing so through digital means,” Jagdeo said, suggesting that the country’s financial landscape could become more efficient and accessible in the years to come.