Two weeks before the planned roll out of the Guyana Development Bank, President Irfaan Ali is assuring that that the Bank will not be in competition with local commercial banks, but it is geared to provide supplemental funding to entrepreneurs.

During a recorded discussion on Sunday with senior business representatives, the President said the application process will be simplified, as the bank will provide small and medium size enterprises and budding entrepreneurs with access to loans of up to $3 million at a zero per cent interest rate.

The programme will also pair financing with mentorship and training to help businesses grow and improve their chances of long-term success.

“So, when the bank is launched on October 5, it is for all of Guyana and what we are doing also is creating an app, so the bank is accessible through technology. We are also developing a system of facilitation. For example, in region 9, we can take some of successful people there and have them as facilitator and help us to develop the idea,” the President said.

The President said the aim of the bank is to build something that is long lasting and strategic.

“We are coming on stream and we want to keep this simple—the application simple and I want people to understand that this is not a grant, this is your opportunity to earn, this is your opportunity to pay back and build your credit and already we are thinking about ways in which we can utilize existing facilities to cushion bad debt, whether its against future grants, so they are mechanisms we can use because we want this to be successful,” the President noted.

He said the bank has the potential to unlock major opportunities and noted that mechanisms are being developed for persons who may default on the loan payment, making clear that the $3M is not a grant.

“So, for many people, the development Bank will also be a supplemental income and here is where we can get innovative…. We can say to people, let us invest in this small processing equipment, whether to fry plantains, seal the packs and go into the supermarket,” the President stated.

Once on stream, President Ali said the initiative will require the collective involvement of commercial banks, established businesses, mentors, technical professionals and community leaders.

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