I agree and disagree with the Hon. VP

Jun 18, 2022 Letters

Dear Editor,

Circumstances have prompted me to listen to what the Vice President actually says nowadays. It is an indication of my distaste for what this leader has done to Guyana, and to naïve, trusting, and gullible Guyanese. So, I listened to him speaking in his recent press conference with a focus on foreigners exploiting the local banking system.
Now I have a problem in figuring out whether the VP is a national leader, a craven follower and partner of foreigners, or a dodgy game player.
Regarding the foreigners bringing in ‘front money’, using that as startup funds, then quickly repatriating the initial cash, the VP had this to say: “I understand the concern, I understand.” Thank God for that; that he didn’t rage at question or questioner. He continued: “Like you go and invest in the US…they can do the same thing here.” I agree and disagree with the Hon. VP. Indeed, there is the freedom, opening, and invitation to do so -invest.
But the seed capital, the venture funds are not deposited into the system and borrowed against, then the underlying amount is withdrawn pronto and repatriated. The bank in which the overseas-sourced money is placed latches on to that, until the original loan has been honoured. The loan approved for a business returns a profit that could be returned to the home country, as part of a business owner’s decision based on several factors. Among them is a better opportunity, re-bank locally the original withdrawal or loan, and cover the cost of carry (if such was the case). Investors do that with interest rates and foreign currency; they go where there is the higher return, using the old standard of buy cheap, sell high, harvest still higher.
As has been rightly touted, there is no better place to invest globally currently than beautiful Guyana. My difference with the learned VP is that the outside money that is used here leaves so quickly, and without that ‘show money’ staying on the books here. I am as one with the VP in his position of free capital flows across borders, to use my own words. Still, I insist that the basis for loans must remain, while profits only can go back. If and when the profits are so huge that they can liquidate debts, or maintain required ratios, then the rest is free to move.
Editor, I also part company with the big jefe is when he offered this disclaimer: “when you run a country and an economy, you can’t make these prohibitions, if we do that then there is no reciprocity.” Our own citizens have been mistreated elsewhere in this region, and the VP speaks of “no reciprocity.” He claims leadership adherence to that, which hurt us. Our Guyanese businesspeople (the VP’s own private sector folks) have complained bitterly about the lack of a level playing field, and the big man insists “no reciprocity.”
Since we have currency limitations (like elsewhere), I wonder why those have not been explored and used. As much as I applaud the VP for his “no reciprocity” stance, I think that given what is going on in our local currency realm, and the stubborn state of the exchange rate that serious pain is being inflicted. With all the infusions (supply), the American dollar to Guyana shouldn’t be so stubbornly high. As he should know, this wreaks havoc with foreign stuff bought locally. Prices, anyone? In closing I tender these additional two cents on “no reciprocity” and how it is endearing to hear from the VP. He, however, must not use that conveniently. That is “no reciprocity” is employed selectively for his favored, with the retaliatory for others.
Sincerely,
GHK Lall

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