GEORGETOWN, Guyana, CMC – Guyana Tuesday launched a GUY$900 million (One Guyana dollar=US$0.04 cents) revolving fund to assist forestry investors.
“We see the forestry sector continuing to play an important role within the context of the sustainable management of Guyana’sGuyana’s forest resources for the long term in the interest of Guyana continuing to make our contribution to the global fight against climate change,” said Finance Minister Dr. Ashni Singh.
He told the launch that the fund would create room for a significant increase in production and further build the market.
The fund’sfund’s memorandum of understanding (MOU) was signed between the Ministry of Finance and Demerara Bank Limited (DBL) last year.
Last October, President Dr. Irfaan Ali pledged the government’sgovernment’s commitment to working with forestry stakeholders to increase productivity and foster sustainable forest management practices.
Singh said borrowers would be responsible, adding, “we want this fund to perform well. We want everybody who borrows from it to do well and for their business to grow. We expect them to repay the monies they borrow”.
The loans will be provided at an interest rate of four percent, with the Finance Minister warning borrowers that all loans must be paid on time to ensure the continuity of the fund. He also said the initiative represents an essential example of partnering with the private sector.
DBL’sDBL’s chief executive officer, Pravinchandra Dave, urged banks to support businesses with accessing finance, noting that the injection of finance will act as a catalyst to aid the recovery of the forest sector through investments to facilitate value-added production, increased allowable extraction and recovery rates.
“We believe that the benefit of the bank should go to all sectors of society. We are not working only for shareholders, entrepreneurs, or businessmen.”
He said 16 percent of the company’scompany’s lending goes to agriculture, 10 percent to oil and gas, and 11 percent to telecommunication Adding, “we found that three sectors are neglected – forestry, agriculture, and mining.
“We are working out a project in which we can help these three sectors,” he added.
Guyana’sGuyana’s forestry subsector employs an estimated 22,000 people, including 4,000 women in various communities.
Forestry Minister Vickram Bharrat reiterated the forestry industry’s importance to Guyana’s overall socio-economic development.
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