Bank of Guyana putting systems in place to operationalize SWF

The Bank of Guyana is putting measures in place to operationalize the Sovereign Wealth Fund (SWF).

Governor of the Bank of Guyana Dr Gobind Ganga told reporters Monday that the Central Bank is trying to forge a partnership with the Reserve Advisory and Management Programme out of the World Bank to aid in the process.

“That will ensure that we have the wherewithal to operationalize the national resource fund or national Sovereign Wealth Fund,” he said.

According to Dr Ganga, the process has started at the level of the bank but training for staff will begin in September.

He added that the financial agency will “start opening accounts…looking at investment avenues, etc.”

The Governor assured that the SWF will be up and running in time for oil revenues and will be continually upgraded.

The Natural Resources Fund Bill governing the SWF was passed in the National Assembly in January. The bill caters for the management of funds from oil production which is set to begin in early 2020.

The Bank of Guyana is responsible for holding the fund for its operational management while the Finance Minister is responsible for the overall management of the fund.

According to the Act, the Central Bank has to establish risk management arrangements and all necessary internal management systems for the operational management of the fund.

If any losses are incurred due to the negligence or intent on part of the Bank, it has to pay damages to the Government.

The Act provides for a public accountability and oversight committee to monitor and evaluate the compliance of the Government and to monitor and evaluate whether the fund has been managed in accordance with the best practices of transparency and good governance.

It also speaks to providing independent assessment for the management of the funds, both in terms of utilisation and withdrawal and the appointment of an investment committee.