Over $2.6B was granted in loans last year by the Institute of Private Enterprise Development Limited (IPED), an increase of approximately $400M from 2016, despite 241 less loans being issued, its annual report for 2017 said.
According to IPED’s 32nd annual report, a total of 4,218 loans were granted last year to the total value of $2,683,540,000 billion, an increase of $397,339,000 million from 2016 where 4,459 loans were granted.
The number of loans granted last year was the second smallest figure in the last eight years, as 2015 recorded the least with 4,086 with a value of $1,852,213,000, and 2009 recorded the highest number of loans being granted with 5,732, at a value of $1,746,899,000.
The report also noted that average loan size recorded was the highest in the last eight years as $635,200 as compared to $512,700 in 2016 and $453,300 in 2015.
The administrative cost per loan also stood at its highest during the period after $101,240 was recorded last year, compared to $94,917 in 2016 and $100,250 in 2015.
The loans last year were able to create and sustain 8,714 jobs with an average of 2.1 per loan, the highest in the last eight years, an increase from 2016’s figure of 8,527 jobs, with an average of 1.9 per loan.
The loan value per job also stood at its highest in eight years as the report noted that last year the value was recorded at $308,000 per job, as compared to $268,000 the previous year and $239,000 in 2015.
Last year’s loans saw a significant decrease in the female recipients as there were only 1,475, a decrease of 218 from the previous year. 2,743 men were granted loans last year, as compared to 2,766 in 2016. While 1,799 loans were granted in 2013 jointly to men and women, 2017 repeated the trend that began in 2014 where none was granted jointly.
A majority of the loans that were granted last year were towards the agriculture sector with 1,259 going towards rice, an increase of 137 from 2016, 379 going towards livestock, 315 for other crops, a decrease of 62 and increase of 23 from the previous year respectively.
Distribution services and other services dominated the remaining number of loans with 1,402 being granted for the former and 398 for the latter, a decrease of 325 and an increase of 23 respectively. Transportation services also saw an increase of loans as 240 were granted last year, as compared to 217 in 2016.
The Chairman’s report by Dr. Yesu Persaud explained that over the past 32 years that IPED has processed in excess of 111,000 loans at a value of $35 billion with a 97% repayment rate.
“It is estimated that IPED’s clients both past and present, through their active micro and small enterprises, support in excess of 10,000 jobs per annum. The contribution of IPED towards the economy cannot be taken for granted as it is not insignificant,” Persaud’s report noted.
It went on to explain that they were able to record a 13.8% growth on their gross loans portfolio after it increased from $2.46 billion at the end of 2016 to $2.80 billion at the end of last year. The non-performing loans also went from $322 million in 2016 to $285 million last year.
In addition to granting loans, Persaud’s report also explained that they facilitated workshops on Managing Money, Commercial Broiler production, Managing a Small Business, the Business of Rearing Sheep and Goat and Customer Care for successful businesses with a total of 1,285 participants, a drastic improvement from 645 in 2016.
IPED’s Entrepreneurship Development Centre (EDC) also provided training to 257 students for the Institute of Commercial Management (ICM) Programmes as compared to 306 students in 2016.
“Thirty two years ago when I envisioned IPED, I knew it would have helped the small businessmen and women to start and build sustainable enterprises. After financing only 25 enterprises in 1986 to now financing in excess of 4,000 enterprises, the Institute has definitely grown to accomplish my early vision. I had many naysayers and distractors in the early days but, good governance, strong leadership and innovation has contributed to IPED being a resilient organisation and serving society as a true ‘Institution of National Character,” Persaud’s report added.
It went on to say that he is satisfied that IPED has achieved most of his vision and is on a path to achieving it fully.
“IPED was created to: ‘help people who are willing to help themselves’. So I urge you to, Get Going, Keep Growing, with IPED. IPED is my gift to the people of Guyana and I trust it is cherished and nurtured for generations to come,” his report said.