The Inter-American Develop-ment Bank (IDB) yesterday announced the approval of a US$5M loan – the first of three – to buttress the financial sector here in the wake of the “complex current global context”.

A press release from the IDB said that the loan was approved on Wednesday and will also expand access to credit to nourish economic growth.

“Backed by a series of three US$5 million IDB loans, the Guyanese reform programme is expected to help enhance the country’s macroeconomic performance and financial stability in the light of the complex current global context”, the release said.

The reforms will include strengthening the Bank of Guyana’s supervisory capacity by updating the financial sector’s regulatory framework which will be brought in line with international best practice.

The programme which is in consonance with the country’s national competitiveness strategy will promote development of new financial instruments and remove impediments to the accessing of credit by businesses and individuals.

According to the bank, as part of the programme, Guyana is fortifying legislation against money laundering and terrorism financing. It said that the Ministry of Finance is also expanding the Financial Intelligence Unit’s capacity to prosecute financial crimes.

Legislation that has been on the books for several years in relation to these matters has not been used and revised legislation is still with a select committee of Parliament.

The IDB release noted that the loan approved on December 10 includes US$2.5M from its Ordinary Capital with a 30-year amortization period and an adjustable interest rate plus US$2.5M from its Fund for Special Operations with a 40-year amortization period and a 0.25% interest rate.