Actions Areas
Financing

 

Financing for Guyana’s Future: Addressing the Liquidity Challenge
Help update the legal and regulatory foundations of the financial system, such as support for the formal exchange of credit information, and use of foreign exchange. Create ways to increase the ability of businesses to access financial resources.

1. Focus of the Action Team
The action team addressed the problem of how to enable businesses to access finance at a reduced cost. It was agreed that there is excess liquidity in the banking system and the group addressed the problem of why this liquidity was not being channeled into the productive sectors.

2. Main Themes and Strategies Addressed
The discussion focused on three areas; the supply side – the willingness of the banking sector to lend, the demand side – the skills of businesses in accessing finance, and the regulatory environment. On this supply side, it was noted that banks willingness to lend and the terms they lend on are heavily influenced by the high levels of default in the past. Solutions must therefore be tailored to reducing the likelihood of default (better risk assessment via Credit Bureau, improving information disclosure by businesses under Companies Act) and making it easier for banks to collect in the event of default (improved commercial dispute resolution).

On the demand side, it was agreed that businesses have trouble in preparing the necessary information to access finance and these skills need improving through training and capacity building (improving business plan skills). It was also agreed that businesses can develop through the use of equity finance, along side debt finance, and as such there was discussion of improving the stock market.

3. Key Initiatives Identified

Initiative	Leaders of the Initiative
Establish a Credit Bureau	Maria Van Beek (MinFin)
Improve Business Plan Skills	Lindel Harlequin (DFLSA)
Improve Commercial Dispute Resolution	Tonia Griffith (Citizens Bank)
Expansion of the Stock Market	Patrick Van Beek (CAFS)
Improve Companies Act Compliance	To be determined
Encourage Lending to Small Businesses	To be determined

4. Summary of Next Steps for Action Team
A team will be formed around each action initiative. Each team will meet separately to examine each of the issues in more detail and to agree on the steps necessary to improve the current position in Guyana. As far as possible these teams will commit their own time and resources to the solutions. However, where necessary the Government will also be called upon to provide financial backing and legislative change.

5. Leadership Team

Private	Public	Facilitators
R. K. Sharma (GBTI) Prakash Dhanrajh (DFL Trinidad) Lindel Harlequin (DFLSA) Patrick Van Beek (CAFS)	Lawrence Williams (BoG) Ramnarine Lal (BoG)	Ed Humphrey (MinFin) Derise Williams(MinTIC)

Action Initiatives (464 KB)