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 on Thursday at a press conference where he explained that this bank will be designed to convert ideas into thriving businesses.

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

Dr. Jagdeo said: “Many started a business, but they can’t either grow the business or get the idea translated into a business because of the lack of financing… and 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.”

He said it is in this regard that the government believes that a good starting point would be to ensure that these companies have access to the capital.

As the government forges ahead with this venture, Dr. Jagdeo said stakeholders are working on its development.

“Next week we are meeting to have a discussion on the second draft of the concept,” he disclosed.

About US$200 million in seed funding will be used in this venture. Jagdeo said the funds will be disbursed in tranches.

Work on the concept has started, he 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.”

The bank will advance credit for small businesses at zero interest with fewer collateral requirements.

To hasten this commitment, an expert committee has been entrusted with formulating the model of the SME Development Bank.

They will need to study global experiences, delineate the legal and institutional framework, and identify the financial structures required to operationalise the bank.