22 C
Georgetown
Friday, January 22, 2021

Scotiabank Exit: with coming oil bonanza ‘no reasonable int’l business would want to stay out’ – Jordan

Must Read

Biden administration suspends oil and gas permitting on federal lands

(Reuters) - The Biden administration has temporarily suspended oil and gas leasing and permitting on federal lands and waters...

Big opportunities for farmers in Guyana’s oil and gas sector, supplies already going offshore

The offshore exploration and production operations in Guyana have been creating growing opportunities for suppliers of goods and services,...

Guyana bracing for rapid expansion in services, logistics and construction – Dr. Singh

Senior Minister with responsibility for Finance in the Office of the President in Guyana, Dr. Ashni Singh, said the...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

Guyana’s Finance Minister, Winston Jordan says at a time when the South American country is set to benefit immensely from oil production revenue and the associated business opportunities the industry brings, ‘no reasonable int’l business would want to stay out’, referring to the recent announcement of Scotiabank’s planned exit from the country.

On Tuesday, November 27, Republic Financial Holdings Limited announced plans to acquire Scotiabank’s Banking Operations in Guyana, Anguilla, Antigua, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, St. Maarten and St. Vincent & the Grenadines.

In learning of this development, Mr Jordan, during an interview at his Main Street, Georgetown office on Wednesday, said he is concerned that Scotiabank is pulling out at a time when Guyana is about to emerge as a major oil and gas producer.

But, nevertheless, he said, “In every challenge come opportunities also. This is an opportunity for the indigenous banks in Guyana – Citizens’ Bank, Demerara Bank and Guyana Bank for Trade and Industry to play a greater role, especially with the coming of the oil and gas industry.”

He added that this challenge also presents an opportunity for ‘new entrants’ into the market.

Mr Jordan said, “With what Guyana is expected to earn and achieve over the next one or two decades and down into the future, it is impossible that any reasonable international business would want to stay out.  You just have to look at, for example, American Airlines.”

When asked about learning from this experience and safeguarding local interest going forward, the Finance Minister said, “Such measures have to start with the legislation. The soundness, tightness, and oversight of the legislation, because you can have the best legislation, but if you don’t have the proper implementation then there will be some of these very issues existing in the society.

Last July, several amendments to the Financial Institutions Act which strengthens the authority of the Bank of Guyana, was passed in the National Assembly.

“This has given the Governor of the Bank of Guyana wider scope and to make it clear in instances of mergers and crisis that may develop and so we have the legislation in place and we are putting supervision in place to make certain we have the right people in place to police the legislation to ensure the soundness of the banking system,” Mr. Jordan explained.

Meanwhile, the Government of Guyana said it was never informed, prior to the announcement, of Republic Bank’s takeover of Scotiabank’s banking operations.

Latest News

Biden administration suspends oil and gas permitting on federal lands

(Reuters) - The Biden administration has temporarily suspended oil and gas leasing and permitting on federal lands and waters...

Guyana-Suriname basin at top of watch list, Bulletwood and Bonboni could deliver big pay

Analysts are looking closely at the exploration campaigns targeting the Bulletwood prospect in Guyana and Bonboni in neighbouring Suriname which are testing the upper...

Guyana bracing for rapid expansion in services, logistics and construction – Dr. Singh

Senior Minister with responsibility for Finance in the Office of the President in Guyana, Dr. Ashni Singh, said the new oil producing country is...

Disappointment for Trinidad as BHP confirms dry hole at Broadside-1

Australian based petroleum company BHP confirmed on Wednesday that it failed to encounter hydrocarbons at the Broadside-1 exploration well in Trinidad and Tobago. “In Trinidad and...

Big opportunities for farmers in Guyana’s oil and gas sector, supplies already going offshore

The offshore exploration and production operations in Guyana have been creating growing opportunities for suppliers of goods and services, including those outside the oil...

More Articles Like This