President announces US$200M fund for small and medium-sized businesses

The new PPP government will establish a US$200 million fund towards the development of small and medium-sized enterprises (SMEs), incumbent President Dr Irfaan Ali announced Sunday at Albion.

“You are voting because you want to embrace the plans of the government,” Ali told the crowd at a re-election rally at Albion, Berbice.

“…We will co-invest with you… We will make money available to you… We will make low-interest loans available to you.”

Previously, he announced that a Development Bank will be et up to support SMEs through improved access to capital and financial services, he said. The proposed development bank will be designed to offer co-financing, enhance liquidity, reduce borrowing costs, and eliminate the need for traditional collateral- one of the biggest challenges SMEs currently face.

“If you’re able to match lending with a 0% interest rate, we can bring down the commercial bank interest rate from 6% or 7% to 3% for SMEs,” Dr Ali said recently at a consultation on the PPP’s manifesto.

“When we remove the risk by providing the matching funds, the banks, in turn, will have to reduce their collateral requirements.”

The proposals reflect the PPP/C’s broader efforts to diversify the country’s oil-fuelled economy and promote inclusive growth. Dr ali said the party’s agenda focuses on removing bureaucratic hurdles, leveraging banking sector liquidity, and creating sustainable economic opportunities for local businesses.

“How are we going to ensure that small businesses are involved in the development of our country?” the President asked. “These are the key issues we are tackling head-on.”

Guyana’s economy has been one of the fastest-growing in the world due to offshore oil production, but the PPP has said it is working to ensure that the wealth generated leads to equitable development.