PRESIDENT Dr Irfaan Ali has said that the government is negotiating with commercial banks to make loans for agricultural production more affordable, with support aimed at medium- and large-scale operators.
Speaking at the Farmers Conference on Monday, President Ali said the government had brought commercial banks together to discuss incentives modelled on those offered for low-income housing.
He said the aim was to encourage lending to agriculture at preferential rates.
“There was a time when we came back in office in 2020. People were not even looking at agriculture as a sustainable way of growing a business or investing. For a matter of fact, a lot of the large farmers and large producers were scaling back investment in the sector. People were leaving the sector, the rice sector, the poultry sector,” he said, adding: “Today, not only have we brought back production and instill confidence in the system, but we are nurturing a new generation of young Guyanese who see a future in agriculture, who see a future in investing in agriculture. We have been able to build the consortiums of young people now in poultry.”
Dr Ali said Republic Bank had committed to setting aside resources for agricultural loans, while the rate was still under negotiation. He hoped an agreement could be announced before the end of the conference week.
“We have brought all of the commercial banks together, and we are currently negotiating with them to offer the same type of incentive that we offer for low-income housing to banks for loans to agriculture, so that those who want to go into more medium, large-scale production can get those loans at affordable rates,” he said.
He also noted that Demerara Bank was offering poultry loans at five per cent, adding that the government was discussing whether incentives could help bring the rate lower.
President Ali said the financing measures were part of a broader effort to address farmers’ challenges and support investment in production.
He linked the planned lending support to the government’s wider agricultural policies and infrastructural investments.