A recent meeting between Guyanese officials and the world’s wealthiest asset managers focused extensively on the nation’s interest in strengthening its financial systems and management capabilities, says Vice President, Dr. Bharrat Jagdeo.
The chief policy maker for the oil sector recalled that the engagement was held on June 7, 2023, at the Office of the President. There, an impressive group of officials from Black Rock, the world’s largest asset manager, along with Bank of America, Capital Group, MFS Investment Management, and other companies held talks with President, Dr. Mohamed Irfaan Ali and his team.
Jagdeo said, “…It was a very high-powered group and we are pleased that they are coming and looking for financing opportunities and possibly equity opportunities here.”
Jagdeo said the government and the mission of business executives who came of their own volition discussed a range of matters. This included the administration’s plans for oil and gas, infrastructure developments, the new industries in agriculture and manufacturing, addressing issues of cross-border trade, financing options, strengthening management capabilities, and the deepening of the country’s financial systems.
The Vice President also noted that there were discussions on the future growth of the markets and strengthening capacity for the managers of the oil funds which are expected to grow exponentially by 2027 to 2030 when 10 oil ships are expected to be in operation.
“We are looking to deepen our financial system to make more investable capital available in Guyana and this is not for government necessarily but for the private sector too,” he expressed.
Jagdeo said too that these companies could be an asset for Guyana as they are on the cutting edge of global finances while adding that some of their tools could be adopted. He said this would complement the traditional loan structure currently utilised in the market.
“Right now, it is just a straightforward loan (you can take from commercial banks) and a lot of them (from the US mission) could get involved by understanding companies and taking an equity share and even make other forms of financing (available) that are differently structured which would enable long term investments at competitive interest rates,” he explained.
Overall, Jagdeo said the discussion centered on greater financial sophistication for Guyana which is necessary to keep the real economy growing.