The president criticizes the local banking sector for its lack of “activity” in supporting the private sector

President Irfaan Ali today criticized the local banking sector for not being “proactive” in the evolution of the country’s business sector.

In his speech at the Private Sector Commission (PSC) 32^II Annual General Meeting (AGM) at the Guyana Marriott Hotel, the President said while the private sector has been quick to capitalize on existing opportunities in both the oil and non-oil sectors, the banking sector continues to lag behind.

“The banking sector has been provided with one of the most dynamic platforms to support capital raising in this country, but to date, the banking sector has failed to deliver the speed, efficiency, reliability and time to capitalize on the opportunities that exist here in Guyana,” the President said.

Urging local banks to develop business proposals for consideration by the private sector, President Ali said banking is more than just lending money.

“The role of the bank is not to accept deposits, but to grant loans at low risk. The bank’s role is also to look for opportunities, understand the direction the economy is heading, create an ecosystem that supports the direction the economy is heading, and take advantage of what is happening in the country. We have announced a number of initiatives and some banks are exceptionally good at implementing the initiative, but very poor at concluding arrangements,” said the President.

He said the private sector continues to perform exceptionally well in creating opportunities in the oil and non-oil sectors. However, the pace at which the banking sector is operating is well below expectations, which poses a serious challenge to the private sector.

“I also believe that our local private sector has grown tremendously in terms of the type of services it can offer to the oil and gas sector and many other sectors. We also need to review the scope and scale at which the local private sector can operate, especially in services to the oil and gas sector. I believe that in many areas we are training very competent Guyanese in the areas of oil and gas management, environmental management, sustainable management and oil and gas engineering, and we must ensure that these skills, when combined, are fully utilized, the President said .

Private Sector Commission Chairman Komal Singh said 2023 was a landmark year for Guyana, with unprecedented growth across all sectors. Appreciating the government’s efforts, Singh said the administration has played a key role in creating an enabling environment for business growth to meet the increasing demands arising from rapid development.

“The private sector across Guyana has the opportunity to be an engine of growth and we have the support from government to be that engine of growth. When we look across the country, in every community, we see that development is taking place and it is turning into economic opportunities for businesses,” said the PSC chairman.

He said PSC participated in a number of trade missions throughout the year, including the largest to the Dominican Republic, which involved approximately 90 delegates. He said the missions had opened numerous business opportunities through international partnerships.

The banking sector has faced criticism from business owners for failing to support some of their ambitious lending and investment plans that failed the scrutiny of the bank itself.