PPP/C’s 2nd term will focus on creating investment opportunities for Guyanese – VP

– says Govt will underwrite investments to ensure returns

The People’s Progressive Party/Civic’s (PPP/C) second term in office will see a greater focus on creating investment opportunities for all Guyanese. This is according to Vice President (VP) Bharrat Jagdeo who has assured that in the coming years ordinary Guyanese will be able to invest their personal savings and gain a return.
During his press conference last week, the VP spoke about the PPP/C Government’s efforts to open up access to financing for the average Guyanese, which includes reducing the cost of financing… such as in 2023 when the Government brokered the reduction of interest rates on loans to poultry farmers from 8 per cent to 5 per cent.
“We want to make sure people have access to the banking system, and the cost of financing comes down. Through reform like digital banking, and a whole range of new measures and instruments, we’ve improved access.”
“We’ve made it clear, we want to underwrite as a Government, future investment opportunities for every Guyanese, whether you’re big or small,” the VP further explained during the press conference.
With current personal savings interest rates at local banks averaging under one per cent, the VP pointed out that that Guyanese investing their savings in Government backed investments will be a more lucrative choice.
“So that you have options, if you have $10,000 or $100,000 or $5 million of savings, that you have investment opportunities that will yield you a bigger return than the deposit rate in the banking sector,” the Vice President said.
“And a guaranteed return, by taking Government opportunities that are lucrative and underwriting them, putting them in a fashion through bonds or shares so Guyanese can invest in these. Those are the things we want to focus on in the new term,” Jagdeo added.
Recognising that access to finance remains a hurdle for many businesses in Guyana, the PPP/C Government had announced last year that it will soon be bringing legislation to the National Assembly to address this issue.
When the United Kingdom (UK) had fielded a trade mission to Guyana last year, prospective investors got a chance to hear from and pose questions to Finance Minister Dr Ashni Singh on Guyana’s investment climate, during a ceremony to welcome the delegation at the Marriott Hotel in November.
One such question was posed by Chief Executive Officer (CEO) of FT Farfan Limited, Andrew Crooks, whose company is a supplier of JCB equipment. He questioned why accessing financing from banks for construction equipment is so hard in Guyana and whether this is likely to change.
The Finance Minister had acknowledged that access to financing is an issue, one that is compounded by what he called a primitive traditional financial sector. According to Singh, more flexibility is needed from the financial sector, to look beyond land as potential collateral. He noted that financial receivables, contracts and invoices should also be accepted by the banking sector.
According to Singh, the reality is that banks will not lend to persons unless they have a credible business plan and a sound track record. Dr Singh had assured that efforts are underway to introduce legislation that will enable easier access to financing, including options for using movable collateral such as inventories and goods.
The private sector has been vocal about the need for access to finance to be addressed, at one point calling out continued bureaucracy at commercial banks hindering access to financing. The PPP/C has also consistently urged the banking industry to be more proactive.
As a matter of fact, one of the strategies the Government had pursued to address access to finance, which has been a long-standing challenge in Guyana for entrepreneurs had included efforts to attract a large, international bank to Guyana’s shores.
Meanwhile in February, during a youth segment of the Guyana Energy and Supply Chain Conference, Jagdeo had noted that the aggregate deposits in the local banking system have grown significantly over the years.
He had also reflected on ways in which the citizens of Guyana can be allowed to invest their own money in the oil and gas sector. Over in Suriname, the state-owned oil company, Staatsolie, had also issued bonds that citizens can invest in, with a view of financing an offshore oil project. Citizens can thus purchase a per centage of this bond.