IPED reports $95.1M surplus for 2008

-projects tough fiscal year
The Institute of Private Enter-prise Development (IPED) yesterday held its 23rd Annual General Meeting at the Pegasus Hotel, where it announced that it recorded a surplus of $95.1 million during last year.

IPED provides supervised loans and business development services to groups and individuals of the micro and small business sectors countrywide, the firm’s website states.

And at yesterday’s AGM, IPED was described as “an institution which is committed to the development of micro, small and medium enterprises for poverty reduction and wealth creation” in addition to being committed to “the provision of financial and business development services.”

According to Chairman of IPED Dr Yesu Persaud, the surplus recorded last year was an increase from the $82.7 million which was recorded in 2007. The surplus is usually reinvested to grow the portfolio so that the institute can be self sustaining, he explained in his Chairman’s Report.

Persaud also disclosed that during the last year the value of loans increased by 4%, although the number of loans approved in the small and micro sectors declined by 11.9%.

Chief Executive Officer Dr Leslie Chin disclosed that the number of clients who received loans in 2008 was 3,327, a figure which was 8.9% fewer than the 3,651 that were granted loans in 2007. The firm experienced a reduction in the number of new clients, with only 766 in 2008. The firm had 972 new clients in 2007.

Chin disclosed that there were 5,182 clients in the loan portfolio at the end of 2008.  He said that during last year, “IPED disbursed loans to 685 villages, communities or wards.”

He explained that over the years IPED has tried to offer assistance to some of the more vulnerable groups in society. These include people living with HIV, Amerindians and young people.

Chin said the number of hinterland clients receiving loans increased from 329 in 2007 to 386 in 2008, while 1,226 (or 24%) of all loans were taken up by young persons between 18 and 35. He said that this year, IPED will be attempting to strategically reach out to those persons who are differently-abled.

Meanwhile, the net profits generated and wages paid out by clients who accessed loans in 2008 totalled $6.8 billion. This figure represented 3.7% of the country’s Gross Domestic Product (GDP), Chin said in his report.

Both Persaud and Chin stated that 2009 was poised to be a difficult year financially, especially as repercussions of the global financial crisis are felt.

Prime Minister Sam Hinds and CIDA Development Advisor for Guyana/Suri-name, Raymond Droulin addressed the gathering and both underscored the importance of IPED to Guyana’s development.

Prime Minister Hinds saluted IPED as “a great example of the embryonic growth path of development.” He said that while a lot remained to be done, IPED had set a good example. He said that experiencing steady growth rates was one way of taking IPED forward.

Meanwhile, several awards were given to clients and staff members of IPED.  Awards were given to the employees who had worked with the company for five, ten and fifteen years. IPED currently has in excess of 80 employees.