Local banking sector wants to fund “major projects” in Guyana

The local banking sector is looking to capitalise on the many opportunities coming Guyana’s way and has even expressed interest in funding major developmental projects here.

This was indicated to Minister within the Public Works Ministry, Deodat Indar, during an engagement with representatives from the Bankers Association of Guyana on Tuesday. The team from the Bankers Association included: Guyana Bank for Trade and Industry (GBTI) Executive Director Richard Isava; Guyana/American Merchant Bank General Manager Pauline Singh, and Bankers Association of Guyana Executive Director Steven Kissoon.
Along with Minister Indar, the Legal Advisor to the Ministry, Kiran Mattai, and other Ministry staff attended the meeting.
The representatives told the Junior Public Works Minister that they were keen on providing financing options to borrowers who intended to pursue infrastructure and other projects in the future. They said finances were available to fund local infrastructural projects in the form of bridges, roads and infrastructural projects in the oil and gas sector.
“So, they are just letting us know that they have the capital to fund some projects,” Minister Indar stated when contacted by Guyana Times.
In a statement from the Public Works Ministry on Wednesday, it was noted that a list of some major projects that are to be funded in the near future was floated to the banking officials.
However, Minister Indar explained that the financial institutions would have to determine how they would tap into these opportunities that were available.
“Right now, the details are sketchy; I can’t tell you anything specifically… The financing will be based on the project size. If it’s large projects, it will be difficult for them to fund it, so the banks will have to come together to fund it. So, it will depend on the projects,” the Minister posited.
According to the missive, Minister Indar told the visiting delegation that he appreciated its proactive approach in this regard and would continue engagements with the Association with regard to infrastructure. The Minister also highlighted a number of major projects that are on the agenda of the Dr Irfaan Ali-led Government that may require funding.
The Bankers Association has been reaching out to the new People’s Progressive Party/Civic (PPP/C) Government over the past days.
In fact, officials had a virtual meeting with President Ali and Bank of Guyana Governor, Dr Gobind Ganga on Monday.
During that engagement, the Head of State used the opportunity to outline the Government’s vision on health, infrastructure and other areas of development while discussions were also held on the COVID-19 pandemic, i’s effects and measures that could be taken to make life easier for citizens during this period, particularly in the banking and financial sectors.
Just last week, President Ali announced a number of measures to cushion the financial impact of the COVID-19 pandemic on households as well as the various business sectors.
These include commercial banks agreeing to waive all bank charges especially ATM/local merchant charges to encourage more out-of-bank transactions as well as charges for transactions by senior citizens.
They have also agreed to offer general concessional reductions of interest rates of 1 per cent and up to 2 per cent on consumer loans below $10 million until December 31, 2020. The existing lending rate ranges between 6.5 per cent and 16 per cent.
Additionally, the banks have agreed to continue supporting businesses with short-term working capital needs to meet payroll and other short-term funding requirements at concessional rates between five and six per cent to encourage businesses to remain open.
Meanwhile, the Bank of Guyana will relax stringent statutory measures in order to allow direct benefits to customers of banks by giving the financial institutions the ability to operate with more flexibility. (G8)