Gov’t to Establish Development Bank for Entrepreneurs

October 2 2025

The Government is pressing ahead with plans to establish a development bank to expand access to financing for small and medium-sized businesses.

Speaking at a press conference at the Arthur Chung Conference Centre on Thursday, Vice President Dr. Bharrat Jagdeo said the initiative is central to the government’s commitment to fostering entrepreneurship.

While underscoring that promises wrre made to establish a development bank, Dr. Jagdeo said the aim is to make loans to small and medium-scale businesses to allow the growth of these businesses.

He explained that the plan was shaped by nationwide surveys and consultations during the PPP/C’s five years in office.

According to him, many Guyanese—particularly women and young people—have struggled to access funding because of the collateral requirements imposed by commercial banks.

He added that persons would have started a business, but they can’t either grow the business or get the idea translated into a business because of the lack of financing.

Many of them do not have the collateral,” Dr. Jagdeo noted. “Many are women. Many of them are young people, and we made it clear, we want to create an environment where young people, women and all Guyanese, for that matter, can create, take or make use of the opportunities in Guyana to create income for themselves and their families and to grow their wealth.”

Alongside the creation of the new development bank, the Vice President said reforms would also be introduced to make commercial banking more accessible.

He noted the Government will ensure that the formal banking system is reformed in a way that persons can have easier access to capital and a greater magnitude.

As promised, the government will create this development bank for a group of people who may not have access to the commercial banks, so that they too can realize the benefits and opportunities.

Dr. Jagdeo disclosed that a concept paper for the bank has already been drafted, with further discussions scheduled for next week. He added that the government plans to make provisions in the early 2026 budget to provide seed financing.

The government’s broader aim, he stressed, is to lower transaction costs and ensure access to financial services across the country, including in hinterland regions.