GUYANA’S financial sector will see sweeping reforms as the Government of Guyana is moving to modernise the sector, expand financial technology (FinTech), and overall roll out major banking reforms.

Vice-President Dr. Bharrat Jagdeo, during a press conference on Thursday at the Arthur Chung Conference Centre (ACCC), spoke about the government’s vision to improve access to capital, support entrepreneurship, and expand digital banking solutions nationwide.

At the time, the VP confirmed that work has already begun on the zero-interest development bank.

He said: “We will ensure that the formal banking system is reformed in a way that they can have easier access to capital and a greater magnitude.”

The government will work with commercial banks to develop a range of instruments, from discounting trade invoices to project financing, according to Dr. Jagdeo, who pointed out that these measures will allow Guyanese to utilise a banking system that will support their business.

Dr. Jagdeo also highlighted ongoing discussions around FinTech, noting that international collaboration will aid Guyana in further seeing their goals in digital finance being realised.

India’s Prime Minister Narendra Modi has pledged to work with Guyana, the Vice- President said.

He went on to say: “But we have to define now all that we want to achieve in Guyana, how we expect the system to grow, and then either customise existing software or develop an entirely new one, and with all of the enabling environment to allow this to happen, so that people can conduct business of a financial nature with less transaction costs, and that financial products would be available to Guyanese.”

Recently, President Dr. Irfaan Ali announced a list of initiatives aimed at improving Guyana’s financial sector, making access to banking and lending services easier for citizens and businesses.

President Ali has since tasked a team comprising officials from the Ministry of Finance, the Bank of Guyana, and commercial banks with identifying loopholes in the sector.

He gave them four weeks to devise an action plan.

During a recent press conference, the president had explained that such an action plan will focus on relaxing documentary conditions for borrowing and opening bank accounts, especially for new businesses, while encouraging banks to lend more, based on movable assets as collateral.

The president also directed that measures  be undertaken towards operationalising the movable assets registry in support of this effort.

“I’ve given instructions that steps be taken to ensure the registry becomes operational, most importantly, promoting more electronic transaction by Online banking, faster payment systems, and other electronic means, ensuring every Guyanese can have a bank account, and…at the end of this whole organisation, can conduct a financial transaction within minutes from wherever they are,” President Ali had stated.