The Guyana Bank for Trade and Industry (GBTI) has secured a revolving US$5 million line-of-credit from the International Finance Corporation, the private sector investment arm of the World Bank. 

GBTI’s Chief Executive Officer, John Tracey told the formal opening ceremony of the Diamond Village branch, East Bank Demerara that the new credit facility with direct links to more than 200 banks in at least 100 countries would be fillip for Guyana’s business community. 

“This facility is being made through GBTI after the IFC carried out a rigorous examination of our systems and our balance sheet over many months this year,” he said.

The Trade Finance Facility is slated to be launched on January 24 and will coincide with a seminar to be conducted by IFC trade experts and how Guyanese businesses can take full advantage of the new financing mechanism. 

The line-of-credit is a financial instrument that will be available for businesses to import goods. 

Tracey explained that Guyanese banks normally have to “cash-collateralize” such letters of credit that they establish on behalf of their customers because the banks do not have a credit rating with large prime United States banks, resulting in constraints on the number of letters of credit. 

“With this line of credit, it broadens the scope for us…All letters-of-credit established by GBTI through this line will be backed by the IFC so we don’t have to put up cash collateral,” he told reporters after the opening ceremony. 

Currently, GBTI’s credit-arrangements are restricted to JP Morgan Chase, CitiBank and Bank of America with correspondent arrangements to banks in other countries. “This will not be the case with the IFC line,” said the GBTI’s CEO. 

At a commission of a  ¼ percent, businesses will repay the money into the revolving fund. The current rates range from 1 to 1¼ percent. 

The GBTI boss noted that the IFC has asked his bank to do some more work, although the bank is eligible.