The Guyana Development Bank is expected to become operational within the coming weeks, with the government currently putting its board, organisational structure and staffing arrangements in place, President Irfaan Ali announced on Tuesday.
During a press conference at the Office of the President, the head of state also disclosed that the government is working out the details of a partnership with commercial banks that could see dedicated Guyana Development Bank desks established at those institutions, making the new financing facility more accessible to entrepreneurs.
The proposed arrangement builds on the government’s previously announced plan for the Development Bank to work alongside existing commercial banks to expand access to financing. In March, President Ali had explained that the partnership would allow commercial banks to effectively serve as extensions of the Development Bank.
In addition to the proposed desks at commercial banks, President Ali said regional facilitators will be deployed to help interested persons access the bank and to encourage entrepreneurs to work together in business clusters.
He used poultry production as an example, explaining that instead of 50 persons within a community each raising 100 chickens individually, they could combine their operations and establish a tunnel house.
According to the President, this approach could create a more organised business ecosystem, reduce mortality rates, improve conditions and generate better returns.
The cluster model has already been identified as an important part of the Development Bank’s operational design, allowing beneficiaries to cooperate, expand production and better manage risks.
President Ali said the government has already commenced sensitisation about the bank and public interest has been significant.
“We have started the sensitisation and I must say the response has been overwhelming,” he said.
“There are a lot of persons who are very interested in being part of the Guyana Development Bank.”
The Guyana Development Bank is being established as a new financing institution aimed primarily at improving access to capital for small and medium-sized enterprises and aspiring entrepreneurs who may have difficulty securing conventional commercial loans.
The Guyana Development Bank Bill 2026 was passed by the National Assembly on July 27, providing the legislative framework for the institution. The bank is expected to provide eligible SMEs with loans of up to G$3 million at zero interest and without collateral, along with mentorship, training and technical support.
The government has also identified sectors including agriculture, agro-processing, manufacturing, tourism, services and the creative industries as areas where entrepreneurs could benefit.
Importantly, the Development Bank’s support will not be limited to the G$3 million facility. Under a proposed co-financing arrangement, qualifying entrepreneurs could access additional financing of up to G$7 million through commercial banks at favourable interest rates, providing a pathway for businesses requiring more capital.
The bank will not operate as a grant programme. The legislation provides for credit policies covering eligibility, appraisal, monitoring, recovery and risk management, and beneficiaries will be required to repay their loans.
The establishment of the Development Bank fulfils a commitment made by the government to widen access to affordable financing and provide more Guyanese with an opportunity to establish and expand businesses.