The Guyana government is moving to establish a Development Bank that, when operational, would expand access to financing for small and medium-sized enterprises (SME) and reshape how local businesses secure investment capital. The institution is designed to sit at the center of a new development finance model that links public funding, private enterprise growth, and national economic planning.
The draft Guyana Development Bank Bill of 2026, published in the Official Gazette on June 4, provides the legal framework for the institution. It sets out the structure, mandate and operating rules for a state-backed bank that would support entrepreneurship through loans and technical assistance.
How the bank supports SMEs
According to the Bill, the Guyana Development Bank would not only support SMEs across the country but, more importantly, provide financing and technical assistance to help businesses grow and expand.
While SMEs will be the primary beneficiaries of the institution’s services, the framework positions the bank as a development-focused lender designed to address financing gaps in the private sector, including support for new ventures and projects.
Government to provide $40B capital
The government is expected to fully fund the bank’s authorized capital of $40 billion (US$192 million). Funding would come through parliamentary allocations and government financial instruments. The capital may be disbursed over time based on ministerial approval. The institution would also generate income through repayments and operational activities.
Loans with or without collateral
A key feature of the framework is the provision of microcredit loans of up to GY$3 million (approximately US$14,400) for qualifying borrowers. The Minister of Finance may adjust this threshold through parliamentary procedures if required.
The bank would be able to issue different types of loans, including credit facilities and other financing instruments. Loans may be secured or unsecured depending on the borrower’s profile and risk assessment. The draft Bill allows flexibility in lending terms, including cases where collateral is not required. This is intended to widen access to finance for smaller or early-stage businesses.
However, under the law, the institution would not operate as a traditional commercial bank. It would be prohibited from accepting deposits from the general public or engaging in speculative trading activities and must remain focused on development lending and related support services.
Confidentiality protections
Information obtained by the bank would be treated as confidential. It can only be used for official purposes related to its mandate. Disclosure would only be allowed where required by law. This provision is intended to protect borrower data and financial records.
False information could bring $10M fine
The Bill establishes penalties for offences committed against the institution. These include providing false or misleading information or obstructing the bank’s functions. Misuse of funds or breach of confidentiality is also punishable. Offenders may face fines ranging from GY$5 million (about US$24,000) to GY$10 million (about US$48,000), with additional liability for corporate actors where applicable.
A Board to oversee operations
A Board of Directors would govern the bank and provide strategic direction. The board would be responsible for approving policies on credit, risk and overall governance. It would also oversee management performance and ensure compliance with the law.
Directors would be appointed by the Minister responsible for finance. The board would consist of between five and nine members. Appointees must have experience in finance, economics, banking, or law. Bankrupt individuals, convicted of serious offences or deemed unfit due to misconduct, cannot serve.
A Chief Executive Officer (CEO) would be appointed by the board to oversee the bank’s day-to-day operations and implement its decisions. The CEO’s responsibilities would include managing staff, overseeing lending activities, representing the institution in official matters, and ensuring the effective execution of approved policies.
Credit rules and loan recovery
The bank must adopt written credit policies covering eligibility, risk assessment and approval processes. Loan monitoring and recovery mechanisms must also be clearly defined. Restructuring or write-offs would only occur under approved procedures. The institution is required to take steps to recover overdue funds where necessary.
Accounts subject to annual audit
The bank’s financial year would align with the national government’s fiscal year. It must maintain proper accounts and financial records at all times. Annual audits would be conducted by the Auditor General. The bank must also submit budgets and financial reports in accordance with public finance laws.
