ACCESS to funding for young entrepreneurs, women, and small business owners in Guyana could soon become easier as the government is moving to set up the zero- interest development bank.

This was announced by Vice President Dr. Bharrat Jagdeo today at a press conference, explaining that the bank will be designed to convert ideas into thriving businesses.

“ We said we want to make loans to small and medium scale businesses to allow the growth of these businesses for the establishment and growth of these businesses in many areas,” he said.

Speaking on the government’s vision, Dr. Jagdeo said the concept of a development bank was born out of years of surveys, consultations and informal conversations with citizens across the length and breadth of Guyana.

“Many start a business, but they can’t either grow the business or get the idea translated into a business because of the lack of financing.

“We made it clear, we want to create an environment where young people, women and all Guyanese for that matter, can make use of the opportunities in Guyana to create income for themselves and their families and to hold their wealth,” the Vice President explained.

He added that it is within this regard, the People’s Progressive Party Civic (PPP/C) government believed a good starting point would be to ensure that these companies have access to the capital.

“We will ensure that the formal banking system is reformed in a way that they can have easier access to capital and a greater man,” he said, explaining that the government is also working assiduously to modernize the financial sector.

The government will work with the banking system to develop a range of instruments such as discounting trade invoices to ensure Guyanese get to use the banking system to support their business.

For those who may not have access to the commercial banks, the development bank will be available so that they can realize the benefits and opportunities of our country.

Work on the concept has started, Dr Jagdeo said.

“We want an early budget next year where we will be putting part of financing to start the bank in the budget,” he said, adding: “We hope that before the end of next year that this bank will be fully established and functional, that the seed capital would be within all the parameters for on lending these resources would have been in place and then so that we can start delivering on this promise very early…”

Earlier this year, the Vice President announced that there will be a development bank set up to support Small and Medium- sized businesses (SMEs).

The Vice President was, at the time, encouraging the graduates to grasp the opportunities that are being presented as Guyana continues to witness unprecedented economic growth in various sectors.

While also encouraging entrepreneurship, he stated, “There will be a bank, a development bank, that will allow zero-interest financing for small and medium-scale businesses.”

He went on to add that if people are looking to go down that route, he hopes that they would look at all the opportunities there.

Against this backdrop, he indicated that the government in its next term in office will place a bigger focus on financial literacy and financial empowerment.

Just last year, while addressing stakeholders in Guyana’s manufacturing and services sector, Dr. Jagdeo stated that the government was exploring the re-establishment of a development bank that will assist in areas of key financial gaps to provide long-term capital to support transformational projects.

At that time, he emphasised the government’s commitment to strengthening and modernising Guyana’s financial sector to meet the demands of a rapidly expanding economy.

During that engagement, he also noted that discussions were underway to introduce new institutions and innovative financial instruments to complement the offerings of existing financial entities.

These tools, he explained, were essential to addressing the evolving needs of businesses and industries.