President Dr. Mohamed Irfaan Ali on Thursday outlined several elements of his government’s transformational plan to build out a modern, competitive economy, backed by a strengthened financial sector. During a press engagement at State House, President Ali said there are a number of areas that are critical to the development of this modern infrastructure. “The digitisation of our economy, the speed and efficiency of which we can process transactions, the efficiency of the public service, the openness and transparency of the system, developing a system that is rule-based, [and] systemic in nature, one that removes human biases, and one that ensures there’s predictability in everything we do. That is what modernisation is about,” the president said.
Highlighting the government’s legislative reforms, President Ali detailed several indicators of Guyana’s financial stability. He disclosed that credit to the private sector grew from $259.9 billion in 2020 to $376 billion in 2023, representing a 44.7 percent increase.
“What that tells us is that there is expansion in the private sector, that there is trust in the policy framework of the country, and that there is confidence in the private sector and by the private sector in investing in Guyana,” the president pointed out.
In addition to strengthening domestic systems, the government has been fostering international partnerships. President Ali cited contributions from IDB-Invest, the private sector arm of the Inter-American Development Bank, which has authorized 14 transactions in Guyana since 2020, reflecting a $173 million investment across diverse sectors such as hospitality, education, and oil and gas.
“This confidence comes when people have, when investors and institutions have confidence in the system you’re building, in the way in which you’re approaching the development of your economy,” the president later said.
To capitalize on this momentum, the government plans to implement a series of measures to modernize its legislative, regulatory, and policy infrastructure, fostering a more competitive environment. Key among these measures is updating the Financial Institutions Act (FIA) to modernize the banking sector and align it with international standards.
Building on its support for micro, small, and medium-sized enterprises (MSMEs), the government will further invest in strengthening this crucial demographic and generating wealth at the community level through initiatives like housing developments and increased employment opportunities.
“What we have seen since the re-energising of the housing program here from 2020 is the low-income mortgage ceiling has increased from $8 million to $20 million, which means that the same special conditions that were attached to $8 million loans are those special conditions that are attached to $20 million loans now,” President Ali explained.
This commitment to increasing the spending power of Guyanese has led to notable reductions in non-performing loans.
“Non-performing loans, which peaked at 32.9 billion in 2020, reduced by 59 percent to 13.4 billion at the end of 2023. That is as a result of some financial planning…the strength of our financial system, the viability of our financial system, and the results of the targeted policies we are introducing,” the president underscored.
Other interventions, such as the operationalization of the National Payment System and the establishment of a revolving fund for the forestry sector, are part of the government’s plan to ensure Guyana’s financial system is on solid footing.
