“There is no law that says you must have a house or land to secure a loan” – AG

– says banking institutions must take risks in order for local economy to grow

Guyanese businesses do not need immovable property as collateral to access bank loans, Attorney General (AG) and Minister of Legal Affairs Anil Nandlall SC explained on Sunday, challenging long-held misconceptions in the financial sector and urging banks to embrace risk to drive economic growth.
“There is no law that says you must have a house or land to secure a loan,” Nandlall said on the Starting Point podcast. “I researched the matter, and there is no such requirement in our laws. None. So, that was the first hurdle put up when we asked that invoices and agreements of supply, whether it’s goods or services, be used as a form of collateral. We were told by the banks, no, there is something in the law that says that only immovable property can be used. I knew that that was not right,” he said.
The AG’s remarks come amid growing concern over access to capital among local businesses, particularly small and medium-sized enterprises (SMEs), which form the backbone of Guyana’s private sector. Historically, many banks cited legal restrictions as justification for refusing financing unless borrowers provided immovable property as collateral, leaving businesses unable to capitalise on lucrative opportunities. Nandlall dismissed these claims, explaining that the law does not impose such a requirement. “So why would a $100 million contract guaranteeing supply of goods or services not be considered adequate collateral? That has been an artificial barrier for years, and it’s time it ended.”
Highlighting innovative measures in the banking sector, Nandlall praised the Guyana Bank for Trade and Industry Limited (GBTI) for pioneering invoice financing, a system in which businesses can use invoices or contracts as collateral to access loans. “One bank has stepped up. Others will follow. In a competitive market, risk-taking is rewarded. No pain, no gain,” he said, noting that Government support is available to ensure such practices become widespread. Nandlall emphasised the Government’s commitment to creating an enabling environment for investment and growth. “Whatever legislative measures are needed to make financing easier, we are ready, able, and willing to supply that support,” he said. “Our goal is to ensure Guyana remains an attractive destination for both local and foreign investment.”

Strong legislation
Beyond financing, the AG addressed broader concerns facing the business community, including commercial disputes, court jurisdiction, and the enforcement of judgments, particularly in cross-border cases. He outlined a strengthened judiciary with specialised commercial courts, constitutional courts and increased judicial staffing, aimed at resolving disputes efficiently and reducing long-standing backlogs. “We now have more judges than ever before in the High Court and Court of Appeal. The backlog that plagued our courts for decades is being tackled,” Nandlall said. “Commercial matters are handled in dedicated courts, allowing for expedited hearings. Constitutional and public law cases, including politically sensitive matters, are disposed of with commendable alacrity. Businesses can have confidence that disputes will be addressed fairly and efficiently.”
Nandlall also explained the principles of private international law, which generally place jurisdiction in the country where contractual activities are executed or performed. He reassured businesses that contractual freedom remains protected: parties are free to agree to dispute resolution in other jurisdictions, including the Caribbean Court of Justice, ensuring impartiality and enforceability of judgments.