In aid of improving Guyana’s ranking in the World Bank Doing business Index, Minister Gaskin has given full support to the Credit Reporting (Amendment) Bill 2015.
According to Minister Gaskin, the passing of the Credit Reporting Bill 2015 makes way for the strengthening of the credit information industry and represents a decisive step in support of our economic development.
The Bill deals with the licensing of credit bureaus to operate in Guyana and makes provisions for the sharing and utilizing of credit information in order to strengthen the system through which individuals and businesses in Guyana get access to credit. In the World Bank Doing Business Index, Guyana is ranked 167th (out of 189 countries) for access to credit.
This makes this one of the hardest places in the world to get credit, and this has contributed to a final positioning at 137 out of 189 countries overall in the Index.
Our Credit Bureau coverage is not enough to score a single point in the Doing Business Index.
The Minister pointed out that unfortunately, the Doing Business Index has become one of the key indicators for potential investors and, whether we like it or not, it is of critical importance that we improve our ranking on that index.
Having a functioning Credit Bureau operating in Guyana will allow for better risk assessment and provide a sound basis for decision making on providing credit to businesses in Guyana, and to that extent will go a long way toward addressing the issue of access to credit by businesses in Guyana.
Minister Gaskin believes the passing of the bill is intended to give life to an industry that is about to die before it has been able to make a contribution to our economy, and without these amendments, there will be no Credit Bureau.
It is important to our long-term economic well-being by having a well-functioning Credit Bureau operating in Guyana.
Our economic well-being is dependent on how effectively we finance our investments and this, in turn, relies on our credit providers being able to assess the risks associated with providing this credit, the Minister said.