Search on for large, int’l bank to come to Guyana – GO-Invest CEO

…as efforts continue to improve access to financing

One of the strategies being pursued by the government to address access to finance, which has been a long-standing challenge in Guyana for entrepreneurs, includes efforts to attract a large, international bank to Guyana’s shores.
During his address at the International Business Conference (IBC) launch over the weekend at the Marriott Hotel, Guyana Office for Investment (GO-Invest) Chief Executive Officer (CEO), Dr Peter Ramsaroop spoke of these efforts.
He mentioned Bank of America (BoA), with whom the government previously discussed the possibility of establishing a presence in Guyana. For example, President Dr Irfaan Ali met with BoA representatives last year to explore opportunities in Guyana and also engage with the local private sector. Ramsaroop added that discussions are ongoing with BoA and other international banks.
“We’re looking at the banks… they’ve all brought their interest rates down for areas like housing. Mortgages are lower for our people. So, more and more, we’ve been speaking to large banks.”
“Bank of America for example. To look at the foreign reserves’ component. Foreign exchange market. We’re looking for a large international bank to come into Guyana. To look at how we can have more access to financing,” the GO-Invest CEO said.
He acknowledged the presence of the New Haven Merchant Bank, which was launched in 2022 with the aim of mobilising low-cost loans for the private sector and government. Ramsaroop cited the bank’s efforts in working on improving access to finance.
“Access to financing, always an issue. We have a new merchant bank, called the New Haven Merchant Bank, that is putting together a large, multi-million-dollar fund for young companies. It may take a big company 90 days to pay you. But there are ways around the financing option,” he explained.
Last year, it was announced that the New Haven Merchant Bank would be launching its $25 million Small and Medium-sized Enterprises (SMEs) fund. This initiative aims to empower both investors and entrepreneurs, offering opportunities for capital investment and business growth.
Based on work done by the Georgetown Chamber of Commerce and Industry (GCCI), it has been found that more than 50 per cent of businesses need formal financing to meet basic working capital needs, and less than 50 per cent need financing for fixed investments and to pay off debts.
A few months ago, President Ali in his address to the Private Sector Commission (PSC) Annual General Meeting had challenged the banking sector to be more innovative and adaptive to the growth of the country and the new opportunities opening up.
“The role of the bank is not to take deposits and to lend in a low-risk environment. The role of the bank is also seeking the opportunity to understand where the economy is going, to create an ecosystem to support where the economy is going and to build upon what is happening in the country,” President Ali had said.
“Some of the banks are doing an extremely good job at following the initiative, but a very poor job at concluding arrangements…Our local private sector and local leaders are doing a tremendous job in trying to open up opportunities, especially in the non-oil sector, but the speed at which the bank has been operating and processing does not match the type of dynamism that is in the economy.”
Guyana’s economy is expected to continue its growth trend for yet another consecutive year, with projections putting Real Gross Domestic Product (GDP) at a 34.3 per cent growth in 2024. Once realised, this will represent the fifth consecutive year in which the Guyanese economy will be growing at more than 20 per cent, and will result in Guyana growing at an annual average of 38.8 per cent over that five-year period. (G3)