Georgetown, Guyana, July 3, 2013
– IFC, a member of the World Bank Group, is helping Guyana Bank for Trade
and Industry (GBTI), the country’s second largest bank, establish solid
risk management practices to support its long-term sustainability and build
a strong foundation for its small and medium enterprise (SME) lending.
Currently, an estimated 65 percent of Guyana’s SMEs are un-served or under-served
by the country’s financial system, which limits their ability to grow
and create jobs.
With support of the Canadian International
Development Agency (CIDA), IFC will implement a two-year project with GBTI.
IFC signed a cooperation agreement with GBTI, which was announced today,
to provide advisory services to build robust risk management within the
“Our collaboration with IFC will help
support GBTI’s future expansion and financial sustainability by harmonizing
our risk management policies to increase efficiency and take advantage
of new market opportunities,” said John Tracey, CEO of GBTI. “GBTI will
work with IFC to develop a more client-focused, performance-guided approach
that better serves the needs of our population.”
In Guyana, risk management practices
need to be strengthened to ensure the long-term growth of financial institutions
and improve the country's credit penetration rate, which is currently only
30 percent of GDP. Many financial institutions are reluctant to enter into
and/or expand SME lending because of the need to first implement the internal
structures and procedures to identify and manage risks related to these
“IFC is committed to helping Guyana
support a more inclusive financial marketplace,” said Ghada Teima, IFC
Access to Finance Manager for Latin America and the Caribbean. “We engage
with financial institutions, like GBTI, to develop strong risk management
practices that help promote financial stability and increase access to
finance for SMEs.”
Since Guyana became a member of IFC
in 1967, IFC has invested $31.4 million in the country’s private sector.
IFC also implements advisory programs to improve the business climate,
build the skills of local entrepreneurs, and promote access to finance
and markets for small businesses.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
About Guyana Bank for Trade and Industry
Guyana Bank for Trade and Industry Limited
has a rich and successful history of over 170 years that began with the
establishment of the first commercial bank in British Guiana, the Colonial
Today, GBTI is a majority Guyanese owned
institution and provides an extensive range of services to its corporate
and individual clients through its 11 countrywide branches – personal
savings, business and investments accounts; personal, housing and business
financing; GBTI Local Dollar Credit Card and VISA International Credit
Cards. The Bank also provides other services such as Online Banking and
Debit and Prepaid Cards; a countrywide network of ATMs and Point of Sale
Terminals; money transfer, letters of credit, bills collection and discounting,
pre-export trade financing. For more information, visit www.gbtibank.com