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Banks agree to waive ATM fees, defer loans following talks with President Ali
President of the Guyana, Dr. Mohamed Irfaan Ali, on Wednesday, announced that in light of economic constraints caused by the COVID-19 pandemic, he has consulted with the Governor of the Bank of Guyana (BOG) on the way forward.
The Governor further consulted with the Guyana Bankers Association, which yielded several relaxations.
“The Bank of Guyana will extend the moratorium to December 2020. To allow banks to further defer customers payments to the end of December 2020, to cope with the low revenue generation needs, to meet operational needs,” President Ali said.
The deference will result in loans not being classified as non-performing and will not require loan loss provisioning. The Bank of Guyana will further waive Section 13 and relax Sections 14 and 15 of the Supervision Guidelines until December 2020.
“Additionally, a waiver is being given to section 13 of Supervision Guideline: number 5. The relation of stringent statutory measures is intended to result in direct benefit to customers of banks, by giving the financial institutions the ability to operate with more flexibility,” the Head of States outlined.
He noted that the Bank of Guyana will reduce liquidity requirements in two areas.
The reducing of the reserve requirements from 12% to 10%, the lowering of liquids asset requirements for demand and deposit from 25% to 20%; and saving and timed deposit from 10 to 15%.
“These measures will result in overall increased liquidity in the financial sector. The reduction in reserve requirement will result in the injection of $9.4Billion, and the reduction in the liquid asset requirement will immediately release an estimated $23.3Billion in the economy.”
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Guyana Diaspora Forum
We have a large database of Guyanese worldwide. Most of our readers are in the USA, Canada, and the UK. Our Blog and Newsletter would not only carry articles and videos on Guyana, but also other articles on a wide range of subjects that may be of interest to our readers in over 200 countries, many of them non-Guyanese We hope that you like our selections.
It is estimated that over one million Guyanese, when counting their dependents, live outside of Guyana. This exceeds the population of Guyana, which is now about 750,000. Many left early in the 50’s and 60’s while others went with the next wave in the 70’s and 80’s. The latest wave left over the last 20 years. This outflow of Guyanese, therefore, covers some three generations. This outflow still continues today, where over 80 % of U.G. graduates now leave after graduating. We hope this changes, and soon.
Guyanese, like most others, try to keep their culture and pass it on to their children and grandchildren. The problem has been that many Guyanese have not looked back, or if they did it was only fleetingly. This means that the younger generations and those who left at an early age know very little about Guyana since many have not visited the country. Also, if they do get information about Guyana, it is usually negative and thus the cycle of non-interest is cultivated.
This Guyana Diaspora Online Forum , along with its monthly newsletter, aims at bringing Guyanese together to support positive news, increase travel and tourism in Guyana and, in general, foster the birth of a new Guyana, which has already begun notwithstanding the negative news that grabs the headlines. As the editor and manager of the publication, I am committed to delivering Blog entries and Newsletters that are politically balanced, and focused on the positive ideas we wish to share and foster among Guyanese.
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