APNU backs establishment of Development Bank but calls for revisions to draft legislation 

The Partnership for National Unity (APNU) has voiced its support for the Guyana Development Bank, noting that it will play a crucial role in expanding access to finance for budding entrepreneurs.
However, the Parliamentary opposition is calling for changes to the draft legislation put forward by the Government to govern its operations. During a press conference on Friday, APNU’s Dr Terrence Campbell said, “APNU supports the establishment of a development bank in principle.”
“Further, we strongly advocate that all citizens position themselves to capitalise on the opportunity to secure loans to start or grow their businesses whenever the bank becomes operational. Guyanese entrepreneurs and small and medium-sized businesses urgently need affordable financing, technical assistance, and meaningful opportunities to participate in the economy,” he added.

However, he said APNU opposes the Guyana Development Bank Bill in its present form, arguing that its governance structure places excessive authority in the hands of the Government and the responsible Minister.
The bill proposes that the bank be governed by a Board of Directors and that it shall consist of no fewer than five or more than nine Directors appointed by the Minister. It also outlines that the Minister shall appoint the chairperson and deputy chairperson.
In this regard, Dr Campbell said, “APNU has therefore called for the bill to be referred to a Parliamentary select committee and amended” to provide critically important safeguards.
These include opposition representation on the board and clearly prescribed professional qualifications for the Chief Executive Officer (CEO).
Additionally, he called for shared authority for major contracts and financial commitments; stronger regulatory and Parliamentary oversight; priority access for Guyanese citizens; enforceable safeguards against political interference; and specific penalties for officials who solicit favours, accept inducements, or corruptly manipulate loans.

“APNU’s position is clear: establish the bank, but protect it from political control, patronage, and corruption,” the Parliamentarian said.
The development bank will offer loans up to $3 million at zero interest and without collateral.
Beyond the initial $3 million zero-interest facility, the Government has already secured agreements with commercial banks to leverage those funds, allowing small business owners an additional $7 million in financing at subsidised interest rates as low as 3.5 per cent.
The Government has already set aside US$100 million to kickstart the initiative. The Guyana Development Bank Bill was officially laid in the National Assembly on June 5 by Finance Minister Dr Ashni Singh.
It was reported that stronger enforcement provisions are included under the bill, with penalties for breaches. The draft legislation introduces offences relating to false information, obstruction, destruction of records, misuse of funds, and improper disclosure of confidential information.
“Any person who commits an offence … is liable on summary conviction to a fine of not less than five million dollars and not more than ten million dollars,” the bill notes. It further went on to address corporations and representatives of corporations that are liable for offences.
“Where an offence under the Act is committed by a body corporate, the body corporate is liable on summary conviction to a fine of not less than $5 million and not more than $10 million,” it said.
“Where an offence committed by a body corporate under this Act is proved to have been committed with the consent or connivance of, or to be attributable to neglect on the part of, a Director, manager, secretary, or other similar officer of the body corporate, that person also commits the offence and is liable to the penalty prescribed…”
The explanatory memorandum emphasises that the bank is intended to function as a development finance institution focused on SMEs, outlining that its core purpose is to “provide financing and support for small and medium-sized enterprises in Guyana and to promote national economic development.”
It further details functions that include lending, collaboration with financial institutions and development partners, and the provision of technical, managerial, and advisory services to enterprises. The bill will now proceed through the Parliamentary process, where it is expected to undergo further debate and scrutiny before being passed into law.