The National Assembly on Monday passed the Guyana Development Bank Bill, clearing the way for the establishment of a new financial institution aimed at expanding access to financing for micro, small and medium-sized businesses across Guyana.
The legislation fulfills a key 2025 manifesto commitment by the People’s Progressive Party/Civic (PPP/C) government and introduces zero-interest, zero-collateral loans of up to G$3 million for eligible borrowers.
The bill, which was piloted by Finance Minister, Dr. Ashni Singh, was approved by the government’s majority after opposition Members of Parliament declined to participate in the debate while protesting in the chamber over the MV Barima tragedy.
Speaking in support of the legislation, Minister of Public Service, Government Efficiency and Implementation, Zulfikar Ally, said the Development Bank is designed to address longstanding barriers to financing faced by entrepreneurs who are unable to meet the collateral and credit history requirements of traditional commercial banks.
He said the institution will specifically target micro, small and medium-sized enterprises, including first-time entrepreneurs, women-owned businesses, youth entrepreneurs, sole traders and persons with disabilities.
Beyond providing financing, the bank will also offer business training, mentorship and technical support to help entrepreneurs establish and grow sustainable enterprises.
The legislation also creates opportunities for co-financing with commercial banks, allowing qualifying businesses to access loans of up to G$7 million at preferential interest rates.
According to Minister Ally, the bank’s lending will focus on sectors considered critical to Guyana’s economic development, including agriculture, agro-processing, manufacturing, tourism, services and technology.
He added that the institution will operate under a governance framework intended to prevent the shortcomings that contributed to the collapse of the former Guyana Co-operative Agriculture and Industrial Development Bank (GAIBANK).