Interest-free development bank to become operational early next year

President Ali made the announcement yesterday evening

The government’s planned Guyana Development Bank, capitalised at a minimum of US$200 million, is expected to become operational before the end of the first quarter of 2026.

President Dr Mohamed Irfaan Ali made the announcement on Thursday during the opening of GuyExpo 2025 at the National Exhibition Centre in Sophia, Georgetown.

The Guyana Development Bank—one of the flagship commitments in the People’s Progressive Party/Civic (PPP/C) 2025 Manifesto—will target expanded financial access for Small and Medium-Sized Enterprises (SMEs) to support long-term economic inclusion.

“We have started already to put the mechanism in place for the Guyana Development Bank,” the president told the large gathering, adding that, “the administrative, legal, and regulatory framework is being crafted.”

One of the bank’s signature features will be a zero-collateral, zero-interest lending system. Ali said the loan ceiling for this facility will be disclosed in Budget 2026.

The president said the initiative is intended to eliminate one of the biggest barriers facing thousands of small businesses: the difficulty of accessing affordable financing.

Ali also announced a new incentive regime designed to encourage commercial banks to expand SME lending. Under the scheme, banks will receive incentives similar to those applied to housing finance but must, in turn, reduce interest rates to below four per cent and ease collateral requirements.

The Guyana Development Bank will prioritise agriculture and agro-processing, tourism and hospitality, services, creative industries, and activities linked to value creation and innovation. (DPI)

“This of course will lead to the creation of thousands of business opportunities,” the president underscored.

These sectors form part of the government’s wider strategy to diversify the economy, spur rural development, modernise production systems, and broaden national wealth creation beyond the oil and gas industry.