Govt’s US$200M Development Bank will not crowd out commercial banks – Pres Ali

As the Government forges ahead with the rollout of the US$200 million Guyana Development Bank this year to assist small and micro enterprises, President Dr Irfaan Ali has assured commercial banks that this initiative will not serve as a competition for them but rather create new opportunities.
The Head of State made these remarks on Friday evening at the Guyana Bank for Trade and Industry’s (GBTI) launch of its private banking service.
“[We] will establish a Development Bank aimed at providing interest-free loans to small and micro enterprises. But I want to say that this in no way will be crowding out the commercial banking sector. For a matter of fact, we are hoping that this will catalyse a segment of the market and allow that segment to leverage what they get from the Development Bank to unlock more resources from the commercial banks that will benefit from similar incentives, like the low-income loans, so that opportunities will be multiplied as a result of what we are doing,” the Guyanese leader explained.

Already, through the intervention of Government, commercial banks have been offering subsidised interest rates as low as 3.5 per cent.
The development bank, a key commitment in the People’s Progressive Party/Civic (PPP/C) Administration’s 2025 Manifesto, aims to create financial opportunities for Small and Medium-Sized Enterprises (SMEs) so they can benefit from long-lasting prosperity in Guyana’s development trajectory. It forms part of the Administration’s broader vision to empower local entrepreneurs, stimulate innovation, and dismantle long-standing barriers to financing.
Just last month, President Ali announced that the development bank is slated to be operational before the end of the first quarter of this year with some US$200 million available to support SMEs.

Unlocking financing
During an Address to the Nation on December 17, 2025, the Head of State disclosed that small business owners will have access to up to $3 million with no collateral at zero interest. Additionally, through the co-financing mechanism, businesses will have access to an additional $7 million at preferential interest rates – unlocking financing of up to $10 million.
“In the past, thousands of young Guyanese would have been denied access to financing for lack of collateral or a business plan. You no longer have to worry about that,” the Head of State had noted during last month’s address as he outlined the Government’s policy agenda for economic and social development over the next five years.

Youth, women and persons living with disabilities (PWDs) will be prioritised for financial support from the development bank. Moreover, the Government will also appoint a technical team to assist aspiring entrepreneurs in developing sustainable and comprehensive business plans. This will be complemented with mentorship programmes and financial literacy initiatives to help Guyanese save for future investments.
Meanwhile, just last weekend, President Ali disclosed that his Administration has already initiated discussions with several major companies, including Banks DIH Limited, to forge new avenues for SMEs through the soon-to-be-launched development bank.
Speaking at the commissioning of the Banks DIH $13.7 billion Malts Bottling Plant last Sunday, the Guyanese leader explained that joint efforts between larger companies and the development bank can build an integrated value chain across the economy.
“Their procurement power and market access can put smaller businesses into formal manufacturing networks, spreading industrial capability beyond a few large firms and creating broader-based employment and entrepreneurship,” he stated.
The President added that well-established enterprises can also provide mentorship, training and knowledge transfer to the smaller entrepreneurs to help them become successful. He said, “Legacy companies can also act as anchors within Guyana’s manufacturing ecosystem by partnering with smaller local suppliers, contracting local service providers, and mentoring emerging firms.”

More robust financial system
With these initiatives part of the Government’s plan to create a more inclusive and robust financial system, President Ali used the opportunity on Friday evening to assure commercial banks that the enabling environment and infrastructure needed to support this will be created.
In the same breath, however, the Head of State emphasised that the commercial banks need to play their part in supporting the development and modernisation of the local financial system.
In fact, Chief Executive Officer (CEO) of GBTI, Shawn Gurcharran, pointed out that Friday evening’s launch of the private banking service is a demonstration of the institution meeting the needs of a growing and more sophisticated economy.
Private banking is a personalised, exclusive offering that provides high-end financial services like wealth management, investment advice, and lending to high-net-worth individuals (HNWIs) through a dedicated relationship manager.
“At GBTI, innovation has never been about novelty; it has always been about foresight. From introducing the country’s first ATMs in 1994 to establishing our SME and micro-lending division – GROW – in 2024 and pioneering invoice financing in 2025, we have consistently led by anticipating what our clients and our economy would need next. We continue to invest in technology to enhance our offerings and the client experience across our branches and the regions of Guyana,” the CEO stated.