The planned development bank will be a state-led initiative, not a private sector project, Vice President Dr Bharrat Jagdeo said on Thursday.
Speaking at his weekly press conference, Dr Jagdeo said the government has already decided on the seed capital for the bank and how it will be sourced.
“All of that has been agreed on,” he said, adding that the administration has a concept in mind for how the institution will operate.
He noted that while the bank will not be private sector-led, it will work in collaboration with private financial institutions. For example, a person may be able to raise part of the capital from the development bank and the other part from a merchant bank, depending on the size of the project.
Dr Jagdeo said the bank’s terms would differ significantly from those offered by commercial banks and could help de-risk loans, making private lenders more comfortable extending credit.
He said the focus will be on small and medium-scale enterprises, while large companies will continue to access financing through merchant banks and other international institutions.
Legislation has already been amended to allow representative offices of major global financial institutions to operate in Guyana without setting up full banks. Citi has indicated interest in establishing such an office, Dr Jagdeo said.
He added that work on the development bank is expected to begin in 2026, if the government is re-elected.
