Government working to establish development bank 

Vice President Dr Bharrat Jagdeo said that work is advancing behind the scenes on the establishment of the Special Development Bank, a key commitment in the People’s Progressive Party/Civic (PPP/C) 2025 Manifesto. 

Because many Guyanese, particularly women and young people face significant challenges in establishing a business, the PPP/C Administration promised to establish a special bank designed to support small and medium-sized businesses.

Dr Jagdeo, who also serves as the PPP’s general secretary provided the media with an update on the initiative on Thursday, noting that the aim is to have lending programmes in all regions of the county. 

“We’re already looking at the structure of that bank,” he told reporters. 

He again explained that the government wants the bank to offer zero-percent interest loans up to a certain level so that more Guyanese could be afforded the opportunity to start their own business. 

“Beyond that level, we want to work with the commercial banks to do a blending, where in exchange do the government undertaking part of the risk, they can get lower interest tax rates and longer-term credit,” the vice president explained.

All of these options are actively being explored to move the initiative forward, with Jagdeo adding that the development bank remains a priority commitment of the administration. 

The establishment of a development bank was shaped by nationwide surveys and conversations during the PPP/‘s five years in office. 

Earlier this month, President Dr Mohamed Irfaan Ali revealed that the government will soon move to examine the draft proposal. 

He had announced previously, that US$200 million would be injected into this fund to support the growth of small businesses, who play a significant role in the economy. 

The SME Development Bank will provide micro-credit loans to SMEs at a zero per cent interest rate, as outlined in the People’s Progressive Party/Civic (PPP/C) Manifesto 2025. 

This will be complemented with mentorships and support where appropriate to help SMEs grow their businesses 

These are among several initiatives to be piloted by the PPP/C Government to increase access to financing and innovative investment opportunities.