Guyana’s private sector lending experience fastest growth in three years -number of agri loans fall – Half Year Report

• According to the Ministry of Finance’s half-year report, there was a decline in the first six months of lending to the agriculture sector. The Ministry explained that the decline in this sector, of 2.1%, to GY$13.1Bn resulted mainly from a contraction in lending for sugarcane and livestock production of 35.4% and 19.8%, to $0.9Bn and $1.4Bn, respectively.
• Total credit to the private sector increased by 5.7% to GY$238.8Bn over the review period, faster than the past three years. This was supported by an expansion in loans and advances to individuals and businesses, except for businesses in the agriculture sector
• Lending to households recorded robust growth of 13.5%, to reach $32Bn – stronger than the past two years, and was supported by an increase in loans and advances for all purposes, with the exception of other durable goods and travel.
• There was also an expansion in real estate mortgages, which surpassed the half-year growth rate in each of the past three years, resulting from an increase in lending of 5.0% and 14.7% for private dwellings, and industrial and commercial properties, respectively.

(Source: Kaieteur News)