A Partnership for National Unity (APNU) has called on the government to explain how President Irfaan Ali’s proposal to publish the names of prospective Guyana Development Bank borrowers would comply with the legislation governing the institution.

In a statement today, the party said it supports a bank that gives ordinary Guyanese better access to affordable financing, particularly young entrepreneurs, women, persons with disabilities, vulnerable citizens and small businesses. Its concern, it said, is whether the bank will have the independence and safeguards needed to protect applicants and public money.

Ali said during a recent discussion on the bank that the names of persons selected for loans would be made public before financing is granted. Members of the public could then raise objections, including concerns that related persons or established business owners were seeking to dominate a programme intended for those with less access to credit. He suggested allowing one or two weeks for such concerns to be raised. 

APNU said the proposal raised an immediate question about the Development Bank Act’s confidentiality provisions. Information obtained by the bank is to be treated as confidential and used for its functions, subject to disclosure required by law, the party said. The government should therefore identify the legal basis on which applicants’ names would be published.

“Transparency in the management of public funds is essential. But transparency does not require unnecessarily exposing the personal financial affairs of individual citizens,” the statement said.

APNU argued that borrowers may have to provide financial, employment and family information to establish their eligibility. Before applying, they should know what will remain private, what might be disclosed and how their information will be protected.

The party said the public could still receive substantial information about the bank’s performance without routine publication of individual applicants’ details. It proposed reports showing the sectors financed, the distribution of loans across regions, repayment and default rates, approval criteria, related-party transactions and measurable development results.

According to APNU, these matters should have been settled while the bank’s framework was being prepared. It said it had supported the concept of a development bank but had warned before the institution became operational that its structure might leave room for political interference, conflicts of interest, corruption or partisan allocation of loans.

Broader consultation with the parliamentary opposition, financial professionals, small-business organisations, civil society and privacy specialists could have addressed the disclosure question earlier, the party said. 

“Major national economic institutions cannot be governed through arbitrary announcements that appear disconnected from the legislation that established them,” APNU stated.

It called on the bank to publish its rules before lending starts. Those should include objective eligibility and loan-assessment criteria; safeguards against political direction; conflict-of-interest and related-party lending rules; and a complaints and review process independent of those making the original lending decision.

APNU also wants written rules on how applicants’ information will be collected, stored and disclosed, along with the precise legal authority for any publication of names. It called for public reporting on the bank’s use of funds and measurable targets against which its performance could be independently assessed.

The party said Parliament, the Auditor General and citizens should be able to determine whether loans were being distributed fairly and producing results, while applicants retained appropriate privacy.

APNU also expressed concern over what it described as Ali’s account of using his influence to advocate for loan approvals in another context. The statement argued that a system allowing political leaders to intervene in favour of an applicant could also allow intervention against one. Decisions at the Development Bank, it said, must rest on published rules and professional assessments.

The Guyana Development Bank Act is scheduled to come into operation on October 5. The government has announced an initial US$100 million, or approximately G$20 billion, for the institution. It intends to offer qualifying small and medium-sized businesses interest-free, collateral-free loans of up to G$3 million, together with technical assistance. 

The Finance Minister will appoint the bank’s board. APNU representatives and other commentators have previously questioned whether that arrangement provides sufficient protection against political influence. The government has said the bank will help people who struggle to obtain financing from commercial lenders.