Days before the Guyana Development Bank (GDB) becomes operationalised, the Partnership for National Unity (APNU) reiterates its support for the initiative, recognising its potential to genuinely expand economic opportunities for ordinary Guyanese, particularly poor and vulnerable citizens, young entrepreneurs, women, persons with disabilities, small businesses and those who have traditionally faced difficulties in accessing affordable financing. The party, at its press briefing on Friday, stated that its concern has never been with the objective of helping Guyanese obtain financing but rather the governance safeguards, independence, accountability, and clearly defined rules necessary to protect both public money and the citizens whom the Bank is intended to serve.
“Recent statements by President Irfaan Ali have reinforced those concerns. The President has proposed that persons selected for loans from the Guyana Development Bank should have their names published before financing is granted, with members of the public then being able to raise objections. Those objections can cause a loan to be denied,” APNU stated. The party added that the proposal must be reconciled with the very legislation signed into law by the President. The Development Bank’s confidentiality provisions state that information obtained by the Bank is to be treated as confidential and used solely for the purposes of carrying out its functions, subject to disclosure where required by law.
“There is, therefore, an obvious proposed policy removal required by the Government to ensure compliance with its own Development Bank Act,” the party stated. Further, it added that transparency in the management of public funds is essential; however, it does not require unnecessarily exposing the personal financial affairs of individual citizens. “A properly designed Development Bank should be able to demonstrate publicly where its money is going, the sectors being financed, the geographical distribution of loans, repayment performance, default rates, approval criteria, related-party transactions, and the developmental outcomes being achieved without automatically compromising confidential information supplied by individual applicants,” APNU added.
Meanwhile, it added that this distinction is particularly important for vulnerable borrowers. “Applicants may provide the Bank with financial, family, employment, and other personal information in order to establish eligibility for financing. They are entitled to know clearly, before applying, that their information will remain confidential. In the rare law-permitting situations, what may be disclosed, the legal basis for any disclosure, and how their information will be protected should be clear to applicants.”
The zero interest for small businesses, GDB will be launched on October 5 to coincide with the country’s return to democracy. With some $100 million already catered for by the Government and the Law assented for the formation of the bank in July, President Dr Irfaan Ali, at a press briefing, had said that many persons have already utilized the services of loans for up to $3 million each.
The Government has said that plans are being mulled to expand to at least US$200 million, reasoning that the bank will help unlock entrepreneurial potential, particularly among young people and community-based enterprises that have traditionally struggled to access credit. Given that the legislative framework is already in place for the creation of the bank, the administration has been laying the groundwork for the institution’s operations, including the establishment of regional offices and the recruitment of technical staff.
Public Service, Government Efficiency and Implementation Minister Zulfikar Ally, had in late July confirmed that preparations were advancing to ensure the bank is adequately staffed and positioned to serve small and medium enterprises (SMEs) across the country. Positions include project officers, accountants, specialists in proposal development, and experts in financial literacy and marketing.