$60M loan sealed with World Bank private sector arm
The Small Business Development Finance Trust on Tuesday announced that it had funded over 540 micro and small loans to the value of $ 147, 245,000 during 2008, in spite of the challenging economic environment.
Chairman of the Trust Sattaur Gafoor, in his report at the firm’s 6th Annual General Meeting, stated that through this process the establishment has created and sustained approximately 1,368 jobs in the economy.
According to Gafoor, in the brief period of its operations the Trust has funded over 3,971 loans and provided managerial and technical training to a large number of entrepreneurs.
Meanwhile, according to the Annual Report, the firm made an accumulated surplus as of 31st December, 2008 of $37, 177,692 compared with $30, 417, 173 at the end of 2007.
Gafoor said that the aim of the Board of Directors was now to further strengthen and modernize the institution, so as to make it a Microfinance Institution which would be able to attract investment partners.
Managing Director of the establishment, Manjula Brijmohan said that the SBDF was committed to supporting and creating rural area development as a priority and to expanding the ownership of businesses across Guyana. She stated that a request for a loan by the International Finance Corporation (IFC) of the World Bank has received favourable consideration. The $60 million loan would enable the fund to meet the demand of more clients, she explained.
Brijmohan urged clients to make the most of their opportunities as she told them “that nothing is impossible, if you put your mind to it.”
Meanwhile, Head of Go-Invest Geoff DaSilva, in an impromptu presentation, called for the diversification of products even as he emphasised the need for new markets to be found especially in the context of the changing global situation. He said that currently a team consisting of owners of handicraft businesses is currently in Venezuela, exploring new markets. He said that this team had also been to Brazil.
Richard Bakewell, the Economics Officer at the US Embassy, spoke briefly on the importance of micro finance in nation building.
While highlighting micro-financing as an important tool in nation building, he said that this could only succeed if there was a dedicated organization towards making micro-financing a success and if there was a commitment by the borrowers.
Canadian High Commissioner Charles Court delivered the feature address during which he emphasised the importance of allowing the ordinary citizen to have access to credit. He stated that many micro-credit projects have had positive influences on enterprises, people and even nations. Court, however, acknowledged that while there were thousands of micro finance projects around the world, sustaining them is the challenge.
Investment Manager for the International Finance Corporation Adel Meer pointed out that the $60 million loan was being viewed as an investment, and said that the IFC was working with the management and clients of the SBDF towards formalising its operations. He saluted the progress that the SDBF has made but acknowledged that more improvements could be made. Meer suggested that the SDBF may want to decrease the size of the loans they give so that more persons could have access.
The SBDF is a non-profit organization established in 2002 to promote socio-economic development of those persons who are traditionally left out of the development process. The main aim of the institution is for equitable distribution and balanced growth.
The AGM was held at the Hotel Tower.
