MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Help Guyana Bank for Trade and Industry (GBTI) Improve Risk Management for Small, Medium-Enterprises (SMEs) in Guyana

The Guyana Bank for Trade and Industry (GBTI), a commercial bank in Guyana, recently signed an agreement with the International Financial Corporation (IFC), a member of the US-based World Bank Group, to take part in a two-year financial risk management advisory project. IFC intends to provide advisory services to GBTI and also assist the bank in developing sustainable, client-focused approaches to serving small and medium-enterprises (SMEs) in Guyana. The project which has a budget of GBP 347,000 (USD 572,000) is also supported by the Department of Foreign Affairs, Trade and Development Canada, a government agency that aims to promote international development and humanitarian assistance.

At year-end 2013, GBTI reported GYD 95.3 billion (USD 449 million) in total assets, a gross loan portfolio of GYD 42.8 billion (USD 201 million), a return on assets (ROA) of 2.0 percent and a return on equity (ROE) of 21.0 percent. As of December 2013, IFC reported net income of USD 1.01 billion, total assets of USD 77.5 billion, return on assets of 0.9 percent and total investment mobilization of USD 34.7 billion to 612 projects in 113 countries.

By Chikondano Faith Chisala, Research Associate

About the Guyana Bank for Trade and Industry Limited (GBTI): Guyana Bank for Trade and Industry Limited (GBTI) is a financial institution that became a public company in 1991. In 1994, the government of Guyana sold its remaining 30-percent shareholding to Secure International Finance Company Limited, giving that company 61 percent of GBTI’s to outstanding issued shares. GBTI offers a range of services including housing finance and pre-export trade finance through a network of nine branches. At year-end 2013, GBTI reported GYD 95.3 billion (USD 449 million) in total assets, a gross loan portfolio of GYD 42.8 billion (USD 201 million), a return on assets (ROA) of 2.0 percent and a return on equity (ROE) of 21.0 percent.

About the International Finance Corporation (IFC): IFC is a member of the World Bank Group, created to support financial private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses and services. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2013, IFC has 184 member countries that drive its policies and approve disbursements. In fiscal year 2013, IFC’s new investments totaled USD 18.3 billion. As of December 2013, IFC reported net income of USD 1.01 billion, total assets of USD 77.5 billion, return on assets of 0.9 percent, total investment mobilization of USD 34.7 billion and 612 projects in 113 countries.

About the Department of Foreign Affairs, Trade and Development Canada: The Department of Foreign Affairs, Trade and Development Canada (DFATD) is a government entity that was established in 1993 with the intention to manage Canada’s international relations, consular services, international trade, international development and humanitarian assistance. DFATD has projects in 20 countries and a budget of CAD 81.4 billion (USD 73 billion).

Sources and Additional Resources:

Guyana Times, “GBTI unveils risk management plan to help SMEs in Guyana,” http://www.guyanatimesgy.com/?p=48503

International Finance Corporation Press Room, “IFC Helps GBTI Improve Risk Management, Increase Access to Finance for SMEs in Guyana,” http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/B4423C40144AA5E285257B9D004FF294

International Finance Corporation Projects Database, “Guyana Bank for Trade and Industry Risk Management,”http://ifcext.ifc.org/ifcext/spiwebsite1.nsf/a24f910d8d23aa078525753d00658ca8/4d8183c133d15ad185257ba3006fadf7?opendocument

MicroCapital Article, January 27, 2014, “International Finance Corporation (IFC) to Loan $150m to Yes Bank of India for On-lending to Women-Owned Micro-, Small, Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-loan-150m-to-yes-bank-of-india-for-on-lending-to-women-owned-micro-small-medium-sized-enterprises-msmes/

MicroCapital Article, November 21, 2013, “International Finance Corporation (IFC) Loans $31m to Fullerton Credit to Support Small, Medium-Sized Enterprises (SMEs) in China,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-31m-to-fullerton-credit-to-support-small-medium-sized-enterprises-smes-in-china/

MicroCapital Article, July 9, 2010, “Small Business Development Finance Trust (SBDFT) of Guyana Provides Over 540 Microfinance Loans Equivalent to $711,046,” https://www.microcapital.org/microfinance-story-small-business-development-finance-trust-sbdft-of-guyana-provides-over-540-microfinance-loans-equivalent-to-711046/

MicroCapital Article, June 11, 2010, “Guyana Bank for Trade and Industry Limited (GBTI) Launches Women of Worth (WOW) Program to Help Single Mothers Access Microloans,” https://www.microcapital.org/microcapital-brief-guyana-bank-for-trade-and-industry-limited-gbti-launches-women-of-worth-wow-program-to-help-single-mothers-access-microloans/

MicroCapital Universe Profile: Guyana Bank for Trade and Industry Ltd. (GBTI): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Guyana+Bank+for+Trade+and+Industry+Ltd.+%28GBTI%29

MicroCapital Universe Profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

MicroCapital Universe Profile: Department Foreign Affairs, Trade and Development Canada: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Department+Foreign+Affairs%2C+Trade+and+Development+Canada

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Chikondano Faith joined MicroCapital after holding various rolse at a commercial bank, where she improved and diversified her skill set by exploring many banking functions including: trading, treasury management, credit analysis and business development. She developed an interest challenges faced by entrepreneurs in emerging economies after taking up a small business development and entrepreneurship course during her undergraduate studies at the University of Pretoria in Pretoria, South Africa. She holds also Masters degree in Strategic Management from the University of Derby, her independent study topic focused on strategies to support Small and Medium Enterprises (SMEs) in Malawi. In working with MicroCapital, she hopes to expand her knowledge of microfinance and to use this internship as a foundation to pursue a career in micro and developmental finance. Chikondano Faith enjoys travel, drawing, jazz music, and improving her French during her spare time.