A report coming out of the Inter-American Development Bank (IDB) has indicated that more Guyanese are getting increased access to financing through commercial banks and other lending institutions.

According to the “Global and Regional Economies at a Crossroad” report, private sector credit reached 17% in February and March this year before moderating slightly to almost 14% in May 2023.

In 2022, private sector credit grew by more than 15% in December. 

The report noted that out of the three major lending categories, lending to businesses experienced the most growth, averaging 20% in 2022, while household credit showed high, but lower levels of growth.

Mortgages grew by 7.3% in 2022, and by May of this year, it grew to 14%.

The IDB said the growth being experienced in all three lending categories suggest that there are robust economic activities unfolding in the country.

“Businesses make up most of the private sector lending portfolio making up 54% of total loans, followed by mortgages 32% and households 12%,” the report states.

It was noted that the country’s financial system remains liquid and well capitalized, with improved quality of lending.

The ratio of non-performing loan to gross loans of commercial banks dropped from 10.8% in 2020 to 4.7% in 2022.

The report also indicates that net domestic credit steadily increased through 2022 and early 2023.

Net domestic credit includes lending to the private sector, net lending to the public sector, and net lending to Non-Bank Financial Institutions.

Related posts:

IDB notes decline in Guyana’s unemployment rate Chamber of Commerce seeks information from Banks on issues affecting private sector’s access to financing PSC to push for increased access to financing for small businesses Mid-year Financial report shows growth in mining sectors but major declines in agriculture sectors