Commencement order gazette for development bank

Sep 17, 2026 News

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…grand launch set for October 5

(Kaieteur News) – The Guyana Development Bank is moving closer to its October 5 launch, with Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, signing the Commencement Order yesterday to bring the new financial institution into operation.

The Order was subsequently Gazetted, marking another key step towards establishing the bank, which Government says will unlock a new wave of entrepreneurship by expanding access to financing for small businesses and entrepreneurs.

But as the bank prepares to open its doors, concerns remain over its governance and oversight structure. Opposition critics had previously questioned the concentration of authority in the Government, particularly the provision allowing the Finance Minister to appoint the bank’s board, while the legislation does not provide for representation from the Opposition, civil society or independent transparency bodies.

In a press release the Ministry of Finance said that the bank is expected to transform the financing landscape for Small and Medium-sized Enterprises (SMEs) and entrepreneurs in Guyana, especially to the benefit of women, youth, and persons with disabilities, offering zero-interest loans of up to $3 million with no collateral required. Mentorship and training services would also be provided to ensure beneficiaries are equipped with the requisite knowledge and skills to run successful businesses. Under a co-financing arrangement, borrowers would be able to unlock additional financing of up to $7 million from traditional lending institutions, at favourable interest rates. Further, the Bank’s operational structure would facilitate the creation of consortia among beneficiaries, providing opportunities for scaling, specialisation, and risk-sharing.

This week Leader of the Opposition and the We Invest in Nationhood (WIN) party, Azruddin Mohamed told Kaieteur News that government was making a mistake to roll out the Development Bank (GDB) without a robust framework that ensures all Guyanese can benefit fairly from loans up to $3M and that resources intended to benefit those in need are not used to fuel further corruption.

In an interview with this publication, Mohamed said the Opposition, particularly his faction, welcomes any genuine initiative that expands affordable financing for Guyanese entrepreneurs. The freshly appointed Member of Parliament (MP) however stressed that the law, passed in the National Assembly on 27^th July and assented to by President Irfaan Ali on  30^th July is gravely deficient and fails to set strict penalties for corruption involving the misuse of funds from the Bank. Mohamed warned that an October 5 launch date is not a substitute for transparency or proper institutional preparation. In fact, he said government risks rushing the launch and missing a key ingredient for the successful operation of the institution – accountability. The Opposition Leader pointed out, “Every director is appointed by the Minister of Finance, and the legislation guarantees no representation for the parliamentary opposition or any genuinely independent stakeholder.

The law allows the Minister sole power to appoint all five to nine directors, including the Chairperson and Deputy Chairperson, with no requirement of approval from the National Assembly. Mohamed reasoned that a bank capitalised with public money, empowered to lend “with or without collateral and with or without charging interest” at the Board’s discretion, must not be controlled as though it were a partisan lending facility.

In fact, he told this newspaper that opposition involvement in the governance of publicly owned banks is neither unprecedented nor incompatible with professional independence. The Opposition Leader pointed out that in Germany, the Parliament appoints seven members of KfW’s Board of Supervisory Directors, and that parliamentary appointment process has included members proposed by opposition parties. Similarly, Malta’s Development Bank requires consultation with the Opposition before appointing the chairpersons of both its Board of Directors and its Independent Supervisory Board.

He also noted that in South Africa, the Land Bank’s appointment process formally allows relevant parliamentary committees to nominate Board candidates, although the minister retains the final appointment power.  To this end, Mohamed suggested, “Guyana can adopt comparable safeguards without compromising the bank’s professional independence. A bank funded by all Guyanese must work fairly for all Guyanese and not only for those with the right connections.”

Shifting his attention to offences, he said the legislation is weak in ensuring banking officials face penalties for seeking or accepting kickbacks to approve, accelerate, or influence a loan. He said that the Act also imposes the same G$5 million to G$10 million fine for offences ranging from providing false information to the deliberate misuse of the bank’s funds, without any penalty proportionate to the amount diverted.

Mohamed added, “For serious insider corruption, a fine without express provision for imprisonment, confiscation, or permanent disqualification risks becoming little more than a tap on the wrist. Nor does the legislation establish a protected complaints mechanism or independent investigation process.” The Leader of the Opposition argued that these safeguards should have been expressly built into the bank’s governing framework prior to it becoming operational. He acknowledged that the law only provides for offences such as providing false information, obstruction, record tampering, improper disclosure, and misuse of the bank’s assets.

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• Commencement order, Development Bank, gazette

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