Pres. Ali blasts banks for dragging feet on critical economic support

May 23, 2024 News

Kaieteur News – Head of State, President Irfaan Ali yesterday lambasted the domestic banking sector especially as it relates to support being provided to the private sector for manufacturing in order to take advantage of existing economic opportunities, for which the government is looking to intervene.

He was at the time addressing representatives of the Private Sector Commission (PSC) in his keynote address at the PSC 32nd Annual General Meeting (AGM), at the Marriott Hotel.

According to the President, at the previous such ceremony he had cause to challenge local and international business representatives present and the banking sector to do much more, to be more proactive, in its support of the private sector in keeping pace with the rapid development of the country.

Using the PSC’s affair to also evaluate how they did, the President lamented that while “The banking sector has been given one of the most dynamic platforms to support capital formation in this country, “yet to date, the banking sector has not responded with the speed, efficiency, reliability and time to exploit the opportunities that are here in Guyana.”

According to the President, the role of the bank in the country and its economy is not just to take deposits and to lend in a low-risk environment, “the role of the bank is also to seek opportunity, to understand where the economy is going, to create an ecosystem to support where the economy is going and to build upon what is happening in the country.”

With this in mind, he suggested rhetorically, “if any bank that is here in this country can point to me to an investor banker that is employed by the bank that has created five or six business opportunity and develop five or six business plans to bolster the private sector, I will publicly laud that bank.”

Reminding of his many government initiatives, the President said “some of the banks have been doing an extremely good job at following the initiative; but a very poor job at concluding the arrangements.” Emphasising his point, the President used the occasion to point out that the domestic local private sector and “local leaders are doing a tremendous job in trying to open up opportunities especially in the non-oil-sector but the speed at which the banks have been operating and processing does not match the type of dynamism that is in the economy.”

As such, the President was adamant, it is time for us all to review our mode of operation and to find that as we confront these challenges in the new year.”

With this in mind he suggested, “realigning our outlook in the banking sector and our management in the banking sector to match what is required in the economy.”

According to the President, “this is no way being critical of anything, this is just being very frank and very open with you.”

Meanwhile, President Ali also pointed to Foreign Direct Investment increasing to US$7B last year, up from $4.2B the previous year and while some areas of industry did experience double digit growth in loans, the same did not occur for manufacturing.

With this in mind, the President said “…this is one of the sectors that I think we have to do a lot of work to find the model that would expand value addition to our product and do so rapidly.”

To this end, he reminded of the government’s agricultural innovation project” which has since seen the launch of many initiatives geared at proving models—tested models that can be taken to the banking sector where we have bankable projects. Government he said, was also looking to partner with the Guyana Manufacturing and Services Association on building out agro processing facilities that would create business incubators. Initiatives the president is looking to see a more proactive approach from the banking sector.

Head-of-State, Irfaan Ali, opportunities, President, Private Sector Commission (PSC)

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Pres. Ali blasts banks for dragging feet on critical economic support

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