By Clinton Urling President Georgetown
Chamber of COmmerce and Industry
It is encouraging to see the issue of development banks being placed on the government’s agenda for discussion (“Government, private sector to collaborate on Development Bank white paper- Burrowes” SN, September 28, 2012). The introduction of a development bank should be a salient priority for our policy makers.
I have previously written on this topic, noting that specific types of businesses and entrepreneurial activities typically qualify for less-than-favourable, higher interest rates of credit from commercial banks because of the actual and perceived increased risks involved. These clients include new industries/activities, young entrepreneurs, low collateral entrepreneurs, micro businesses, start ups, rural businesses, among others. This reality should not be discounted nor trivialized.
In that same article I noted that development banks are not an unfamiliar entity in Guyana’s economic history. In fact, Guyana’s financial system once was populated with development finance institutions and small enterprise development agencies that were owned and controlled by the government. These included the
