First credit info bureau opens in Guyana, consumers to benefit significantly
The launching of Guyana’s first credit info bureau has been described as a significant and important milestone in the development of the financial sector by Prime Minister Samuel Hinds.
Delivering the feature address at the launch the Prime Minister said, “We have a liberalized market economy and endeavor to comply with all international best practices as far as possible” adding that, “Our banking sector is stable and profitable, and we are engaged in efforts to modernize the other sub-sectors in the financial market such as insurance and pension plans.”
He said that such bureaus are critical to the expansion of credit in any economy, as they overcome some of the information asymmetries that prevent lenders from assessing risk profiles. “A credit bureau collects details on a borrower’s obligations from various sources to produce a comprehensive credit report which can be used by potential creditors” the Prime Minister added.
Meanwhile, the role of the Bank of Guyana was underscored by Deputy Governor Dr. Gobind Ganga. He noted that the process began in August 2011 and ended on July 15, 2013, the date on which the company was granted its operating license.
“The process was tedious with the task of ensuring regulations and compliances were adhered to. A public awareness programme will be launched by the Bank of Guyana to ensure that the public understands the purpose and benefits of the credit bureau,” he added.
Chairman of Credit Info Guyana, Reynar Gretarson said that he was pleased that his company, which operates in over 60 countries, was able to become operational in Guyana. He said that the process leading up to its license being granted involved being vetted by World Bank and Bank of Guyana officials. He added that it was a long- term investment and it would yield the desired results in about 10 years. “It will stimulate economic growth and improve the lives of Guyanese”.
The occasion was also used to recognize several entities which have already signed on to support the country’s first credit bureau. These include Citizens Bank, The Guyana Bank for Trade and Industry, Republic Bank, Scotia Bank, Guyana Water Inc, IPED and Hand in Hand Trust Company.
Source: INEWS GUYANA