Guyana Receives US$35M to Boost Financial Sector

• The World Bank Group approved a US$35Mn Development Policy Credit to support Guyana’s efforts to strengthen financial sector development and fiscal management to better prepare the country to benefit from its newly discovered oil and gas reserves and transform its oil wealth into human capital.
• This financing provides critical support to our reform agenda and efforts to strengthen institutions and build a resilient economy that is capable of withstanding both external and domestic shocks. These reforms will be the keys needed to guide the management of oil revenues for the benefit of present and future generations,” said Finance Minister Winston Jordan.
• While currently, nearly one in four people in Guyana live in poverty, experts estimate that GDP will surge when commercial production of newly-discovered oil and gas begins. In response, the government has embarked on a series of reforms to diversify the economy and turn oil windfalls into human development and sustainable growth in the long term.
• This particular financing focuses on strengthening financial stability and enabling sound financial development to promote macroeconomic stability and long-term growth. In particular, it will support banking reforms and depositor protection, the establishment of a deposit insurance scheme, implementation of new insurance law, and the country’s anti-money laundering efforts.

 (Source: Guyana Chronicle)