Evidence of Guyana’s deepening economic woes is becoming more glaring, with Republic Bank Guyana among the latest to feel the effects.
According to Republic Bank’s Audited Third Quarter Financial Statement, the Bank failed to exceed its 2015 profits by more than $100 million.
The company in 2015 earned just over $4.3 billion before taxes, winding up with a $2.8 billion profit.
In 2016, however, the company returned a profit of just about $2.7 billion and paid almost $1.6 billion in taxes, compared to just over $1.4 billion in taxes in 2015.
Republic Bank’s audited financial statements did report an increase in the company’s asset holdings up by almost $10 billion.
Increases were had in the company’s cash in hand, deposits and treasury bills holdings.
It was reported last week that Citizens Bank would be closing its Charity Waterfront branch in Essequibo on December 31, as the financial sector continued to feel the effects of the economic slowdown. The last day of business will be December 30, 2016.
According to a public advisory issued by the Bank, this difficult decision had come after a careful review of the Charity branch’s operations.
“We wish to assure all stakeholders that the necessary measures are in place to ensure a seamless cessation of business at the Charity branch location,” the advisory said.
It was pointed out too that the mandatory 60-day advance notice has been given to customers of the Bank, along with the various options open to them.
The Charity branch, located in the Alphonso’s Complex at Charity Waterfront, was commissioned on October 29, 2012.
DIPCON in receivership
In more bad business news, last week Trinidad and Tobago-based construction company DIPCON Engineering Services Limited reported that it was in receivership after it failed to make payments on a substantial loan from the Guyana Bank for Trade and Industry (GBTI).
The company had reportedly used its assets as collateral to secure the loan from GBTI, but its failure to pay its debts triggered the move to liquidate the company’s assets.
The company has since been placed in receivership – to be undertaken by Harry Parmesar – and is currently looking to dispose of its assets, including its two asphalt plants and a host of road building machinery and vehicles.
The company, through its liquidators, has begun publishing advertisements inviting potential buyers.
DIPCON Engineering Services Limited was recently engaged in the multibillion-dollar construction projects, namely the East Bank and East Coast Demerara Four-Lane Highway road projects, before falling in dire financial straits and having to lay-off a number of workers.
The company also reportedly owes the National Insurance Scheme (NIS) and the Guyana Revenue Authority (GRA) significant sums of money. (Guyana Times)