Guyana Development Bank critical to bring people out of poverty, create equitable society -Teixeira

Recognising the importance of access to financing, Parliamentary Affairs and Governance Minister, Gail Teixeira, has said that the Guyana Development Bank (GDB) will be critical to bringing citizens out of poverty and create a more equitable society. The highly-anticipated development bank will provide collateral-free and interest-free loans to small and medium-sized enterprises (SMEs), especially those led by vulnerable groups such as women, youth, persons living with disabilities. The aim of this state-backed institution is to empower local entrepreneurs, stimulate innovation and dismantle long-standing barriers to financing – something which Minister Teixeira noted is key to reducing poverty. “What we’re doing now, I think, are some of the correct moves in terms of access to the commercial banking on a much easier way and, the Guyana Development Bank in terms of zero interest. These are critical areas to bring people out of poverty and to make a much more, what you call, equitable society,” she stated. The Minister was at the time speaking during an appearance on the Starting Point podcast, where she was asked about what can be done to give people a greater shot at advancing. “Lots of areas [like interventions for] social protection are important, but I believe one of the key areas is access to either zero interest rates, particularly for those who are poor and vulnerable, and/or low interest loans,” she posited. Already, the Guyana Government has allocated an initial US$100 million in Budget 2026 to launch the GDB this year.

This sum is part of a US$200 million capital pledge from the Government and is one of the key commitments made by the ruling People’s Progressive Party/Civic (PPP/C) in its 2025 elections manifesto. The Development Bank is expected to serve as an alternative financing option for those entrepreneurs who may not qualify for traditional loans from commercial banks, thus empowering more Guyanese to take advantage of national economic opportunities. Currently, the Government through the Attorney General (AG) Chambers is working on the legislation for the operationalisation of the development bank. When launched however, the bank will offer collateral free, interest free loans of up to $3 million, with the possibility of an additional $7 million in financing from commercial banking institutions at preferential rates. President Dr Irfaan Ali has stated that along with the development bank, there will also be a special incentive regime introduced to encourage commercial banks to increase lending to SMEs, similar to incentives used in the housing sector. In return, these banks would be required to reduce collateral demands and lower interest rates to below the current four per cent.

Aggressive housing interventions
According to Minister Teixeira, during the podcast, the PPP/C’s aggressive interventions to drive housing development has not only been one of key markers in Guyana’s economic development over the last five years but also an important security for the more than 50,000 persons who have benefitted from either their house lot or a pre-built house along with their lands. “That impact of housing is enormous on the economy… and again, going back to people, there’s sense of security collateral in that piece of land, that house, that opens up many opportunities that they never would have had before,” she noted. In efforts to make homeownership easier for Guyanese, the Ali-led Administration has rolled out a number of incentives in collaboration with the local banking sector over recent years including the reduction of interest rates on housing loans to as low as 3.5 to 5 per cent; the increase of low-income mortgage ceiling to now $30 million, which would also be extended to approved insurance companies and the lowering of collateral requirements and a 50 per cent discount on negotiation fees for specific housing products, among others.

“So, the combination of social protection plus access to the areas of programmes like housing [have] radically change their lives. And when they do that, it changes the society as well. It brings in a culture of thrift. There’s a variety of things, as well as security, but also in terms of the construction industry, the raw materials industry, transportation, a whole range of issues, technology, lights, water, etc. It radically changes how the economy and the society functions. And we saw it, and we’ve seen it, and it’s now galloping much more in that way,” Minister Teixeira asserted. Among the Government’s housing plan for the next five years is the construction of 40,000 new homes across the country. This year, the Housing Ministry is targeting the construction of 8,000 new homes across all income categories along with the issuance of at least 7,000 land titles, and transport.
In light of this commitment, Housing Minister Collin Croal, back in October last year, engaged the various financial institutions to strengthen coordination, address existing challenges and identify new partnership opportunities within the housing sector. Representatives from the New Building Society (NBS), Republic Bank (Guyana) Limited, Guyana Bank for Trade and Industry (GBTI), Citizens Bank Guyana Inc., Demerara Bank Limited (DBL) and Bank of Baroda provided valuable insights and recommendations aimed at streamlining the financing and construction processes for homeowners.