Senior Minister in the Office of the President with Responsibility for Finance Dr Ashni Singh has signed the Commencement Order to operationalise the Guyana Development Bank, marking another step towards the institution's establishment. The Order has since been gazetted.

The move follows a recent announcement by President Dr Irfaan Ali that the Bank would be launched on October 5. The Guyana Development Bank Bill was piloted by Dr Singh in the National Assembly on July 27 and assented to by President Ali on July 30, paving the way for what officials say will unlock a new wave of Guyanese entrepreneurship.

A first tranche of US$100 million ($20 billion) will be injected at start-up, representing half of the Bank's authorised capital of $40 billion.

 

Zero-Interest Loans

 

The Bank is expected to transform the financing landscape for small and medium-sized enterprises and entrepreneurs, particularly benefiting women, youth and persons with disabilities, by offering zero-interest loans of up to $3 million with no collateral required. Mentorship and training services will also be provided to equip beneficiaries with the skills needed to run successful businesses.

Under a co-financing arrangement, borrowers will be able to access additional financing of up to $7 million from traditional lending institutions at favourable interest rates. The Bank's operational structure will also facilitate the creation of consortia among beneficiaries, providing opportunities for scaling, specialisation and risk-sharing.

 

Legal Framework

 

Principles of transparency, accountability and sustainability are built into the Bank's operational framework through legislative provisions, a release said. Strategic direction will be provided by a board comprising members qualified in finance, economics, banking and law, with latitude to execute broad management functions. The Bank's financial records will be subject to annual examination by the Auditor General, with an annual report on operations to be presented to the National Assembly.

The Bank's establishment comes amid rapidly expanding credit, improving credit quality and growing financial inclusion. Private sector credit and commercial bank deposits more than doubled between end-2020 and end-2025, while non-performing loans fell from 10.8 per cent to 1.3 per cent. Since October 2024, more than 179,000 new bank accounts have been opened, including almost 60,000 between April and August this year, reflecting Government efforts to simplify the account-opening process.

 

Building on Existing SME Support

 

Previous PPP/C administrations have advanced various institutions and initiatives to support local businesses, including the Small Business Bureau and a partnership with IDB Invest. Since 2020, the Small Business Bureau has disbursed grants, disability loans, guarantees and other services totalling more than $2.7 billion, while the IDB Invest partnership has secured business financing of more than US$260 million.

The Guyana Development Bank is expected to build on these initiatives by significantly scaling up small business financing, particularly among groups historically underserved by traditional banking. The institution is also intended to serve as a pillar of Government's economic diversification strategy, targeting sectors including agro-processing, manufacturing, tourism, services and technology.