ON Friday last, the Guyana Bank for Trade and Industry (GBTI) launched its Invoice Financing Facility for the oil and gas sector.
Under this facility, registered suppliers with a proven track record in the sector and those with validated invoices from Exxon Mobil Guyana (or, soon to be introduced, their prime contractors) can access financing for up to 80 per cent of their value of their invoices in advance.
Senior Minister with Responsibility for Finance and the Public Service, Dr. Ashni Singh, who was present at the event, indicated that this new facility meets a need that was long identified, referring to discussions held for years on the necessity for receivables to be accepted as collateral for lending for working capital purposes.
He pointed out that during government-led consultations on the Local Content Bill, the issue of working capital financing was raised.
A post on Minister Singh’s Facebook page, said he applauded GBTI for the structuring of this facility to meet a clear need that exists in the market, and for the role the bank has played in innovating within the financial sector and in contributing significantly to the astronomical growth observed in credit to the private sector.
It was pointed out that credit to the private sector has increased from $260 billion at the end of 2020 to $450 billion at the end of 2024, while the ratio of non-performing loans has fallen dramatically thereby improving portfolio quality.
He emphasised that it was the result of the sound policy environment created by government, as well as a responsible non-financial private sector that was seizing the opportunities being created for investment in the productive sector, as well as a responsive financial sector providing financing for the abundance of good quality bankable projects emerging.
Commending the bank on taking this important step, the minister urged the bank and the rest of the financial sector to expand and replicate the facility beyond the oil and gas sector in the shortest possible time.
The Chief Executive Officer of the GBTI, Shawn Gurcharran, in his remarks at the function, underscored that the launch was a significant milestone for the financial institution.
“At GBTI, we believe in fostering long and strong relationships with our customers and this new service is a testament of that,” he said, noting that GBTI remains committed to supporting the business community with products that cater to their evolving needs, while also ensuring that financial constraints do not affect their work.
Chief Commercial Officer of GBTI, Rawattie Mahandeo, affirmed that the new service was set to revolutionise access to financing in Guyana. She remarked that, over the last three years, the bank has been diligently exploring ways it can bridge the gap.
“Today we proudly introduce the GBTI Invoice Financing, the game changing product designed to transform Guyana’s financial landscape,” she said.
The GBTI Invoice Financing service is for registered and validated suppliers and has flexible terms with no hidden fees, together with a monthly interest of 1.25 per cent.
