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Guyana to strengthen financial sector with assistance from IDB
The Inter-American Development Bank approved today a $5 million loan to strengthen Guyana's financial sector. This program supports one of the three pillars in the IDB Country Strategy for Guyana (2009-2012), namely the Competitiveness Strategy. It is aimed at increasing access to financial services, enhancing transparency of financial sector issues and enhancing macroeconomic stability.    

The Bank's lending, the second in a series of three consecutive programmatic policy-based loans for the sector of $5 million each, 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. 

Results from the second programmatic loan includes the passage of the new Act on money laundering and financing of terrorism, which includes the establishment of a Financial Intelligence Unit. It also supports the preparation of draft new legislation for the creation of a Credit Bureau; enhance coordination and sharing information among supervisory agencies; and to bring the New Building Society under Bank of Guyana (BOG) supervision. 

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 Bank's lending consists of a $2.5 million credit from its ordinary capital for a 30-year term with a six-year grace period, and a $2.5 million loan from its concessional Fund for Special Operations for a 40-year term, 40 years of grace, and 0.25% interest.