PRESIDENT Dr. Irfaan Ali on Monday announced that the Guyana Development Bank will be launched in October.
During a press conference at the Office of the President, the Head of State reiterated that the facility is expected to bring accessible financing to Guyanese.
Eligible small and medium-sized enterprises will be able to access loans of up to $3 million without the requirement for collateral and without interest, providing entrepreneurs with an alternative source of financing to support the establishment, expansion and development of their businesses.
The bank is also expected to provide technical and advisory services to small-business operators, including assistance with preparing business plans, improving financial management and strengthening the overall capacity of enterprises.
The support is intended to help businesses become more sustainable and better positioned to eventually qualify for financing through the formal banking system.
The bank will operate through a bottom up, field driven structure anchored by a board and chief executive officer at the top, and regional credit officers on the ground who work directly with applicants to shape ideas, process interest free, collateral free loans and monitor projects.
These officers are supported by regional facilitators who organise clusters of similar businesses, deliver financial literacy and basic management training, and link borrowers to wider government support.
He said that as businesses grow, sector specialists and technical officers will step in to right size investments, provide technical advice and prepare projects for expansion with commercial banks, ensuring a continuous pipeline of support from start up through to larger scale operations, even after the initial loan is repaid.
Over the past months, officials have been fanning out across the country hosting workshops and engaging persons on potential business plans that can be presented to access financing.
Several private sector agencies, too, have set up information hubs in anticipation of the bank’s launch.
