— President Ali announces, confirms new institution will be operational by 2026

PRESIDENT, Dr Irfaan Ali has announced that the forthcoming Guyana Development Bank will be capitalised with a minimum of US$200 million and is expected to become operational before the end of the first quarter of 2026.

Delivering the feature address at the opening of GuyExpo 2025 on Thursday night, President Ali said the administrative, legal, and regulatory framework for the institution is already being crafted.

He noted that the bank will operate in close integration with commercial banks, with the goal of unlocking greater access to capital.

According to the President, a special incentive regime will be introduced to encourage commercial banks to expand lending to small and medium-sized enterprises (SMEs), mirroring the incentives offered to banks in the housing sector.

In return, commercial banks will be required to lower interest rates to below four per cent and reduce collateral requirements for SME borrowers.

“The bank will be dynamically integrated with the commercial banks to leverage and unlock capital. A special incentive regime will be created to support lending to SMEs by the commercial banks, similar to the incentives we give them for housing,” President Ali said.

The Guyana Development Bank will also offer loans with no collateral requirement and a zero per cent interest rate up to a predetermined threshold, which will be unveiled in the 2026 National Budget.

President Ali said the institution will place strong emphasis on supporting agriculture, tourism, services, and other value-creating activities, ultimately generating “tens of thousands of business opportunities.”

“The bank will focus heavily on the agriculture sector, the tourism sector, the services sector — any activity that deals with value creation,” he added.

He further revealed that a new initiative will soon be launched in partnership with the Ministry of Human Services and Social Security to convert more than 1,000 women trained under the WIIN programme into entrepreneurs.

He described the forthcoming announcement as a bold, locally designed step toward building prosperity “on Guyana’s own terms.”

Vice-President, Dr Bharrat Jagdeo had previously said that the concept of a development bank emerged from years of surveys, consultations, and informal conversations with citizens across the country.

It was within this context, he explained, that the People’s Progressive Party/Civic (PPP/C) government concluded that a good starting point was ensuring businesses have access to 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 margin,” Jagdeo said, adding that government is also working to modernise the wider financial sector.

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

For those who may not qualify through commercial banks, the new development bank will provide an alternative path to realise national economic opportunities.