President Irfaan Ali yesterday assented to the Guyana Development Bank Act 2026, paving the way for a state-owned institution capitalised at $40 billion to provide small businesses with interest-free and collateral-free loans of up to $3 million.
In a statement posted on his Facebook page, Ali said the Act establishes the bank and sets out the main elements of the legal, institutional and administrative framework under which it will operate.
According to the President, the bank will lend to small and medium-sized enterprises across a wide range of sectors.
It is also expected to provide technical and advisory support to small businesses, including help with preparing business plans, managing finances and expanding their operations. The stated aim is to help those businesses eventually qualify for financing from commercial banks.
The bill was passed by the National Assembly on Monday amid sustained protest by opposition parliamentarians over the MV Barima tragedy.
On Tuesday the opposition members chanted and thumped their desks while demanding the resignations of Public Works Minister Juan Edghill and Public Utilities and Aviation Minister Deodat Indar.
Some opposition MPs stood in front of government speakers with photographs of persons who died in the ferry disaster. Speaker Manzoor Nadir repeatedly called for order and proceeded with the sitting when opposition members listed to speak did not respond.
The Development Bank Bill was one of four pieces of legislation passed during the raucous sitting.
It was piloted by Senior Minister in the Office of the President with responsibility for Finance Dr Ashni Singh, who said the institution would unleash a new wave of entrepreneurship across the country.
Under the legislation, the bank will begin with capital of $40 billion, subscribed and paid by the government in amounts and at times to be determined by the Finance Minister. The minister can also amend that amount by order, subject to a negative resolution of the National Assembly.
Singh had first tabled the bill on June 5.
The legislation followed an announcement by Ali in July last year during the launch of a People’s Progressive Party/Civic election campaign rally in Kitty. At the time, the President said the proposed bank would stimulate economic growth by providing zero-interest financing to small and medium-sized businesses.
Ali said his assent to the Act cleared the way for its provisions to be implemented for the benefit of small entrepreneurs countrywide.
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