Guyana gets $5 million to strengthen financial sector

The money will support measures to improve supervision of the Bank of Guyana (BOG), enhance transparency, and boost the payment system's efficiency. (File photo)

WASHINGTON, United States, November 20, 2009 – The Inter-American Development Bank (IDB) has approved a US$5 million loan to strengthen Guyana's financial sector.

The IDB said it was aimed at increasing access to financial services, enhancing transparency of financial sector issues and enhancing macroeconomic stability.  

The money will support measures to improve supervision of the Bank of Guyana (BOG), enhance transparency, and boost the payment system's efficiency.

“Moreover, the financing will also support measures to curb money laundering while promoting increased access to credit and other financial services for firms and individuals in order to foster the development of productive economic activities,” the IDB said in a statement issued yesterday.

This latest assistance from the IDB is the second in a series of three consecutive programmatic policy-based loans for the sector of US$5 million each,

The Bank said it expected that this second disbursement would assist in the passage of the new Act on money laundering and financing of terrorism, which includes the establishment of a Financial Intelligence Unit; support the preparation of draft new legislation for the creation of a Credit Bureau; and enhance coordination and sharing information among supervisory agencies.

“The third operation will see the conclusion of some of these reforms which would make the financial sector more resilient to both internal and external pressures and at the same time more responsive to the evolving financial needs of the Guyanese private sector and public in general,” the IDB statement added.

The loan consists of a US$2.5 million credit from its ordinary capital for a 30-year term with a six-year grace period, and a US$2.5 million loan from its concessional Fund for Special Operations for a 40-year term, 40 years of grace, and 0.24 per cent interest.