PSC addresses withdrawal of $60B from commercial banks, economic downturn

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Meeting with private sector reps[www.inewsguyana.com] – The Private Sector Commission (PSC) is urging that the APNU+AFC administration not withdraw some $60B that has been deposited into commercial banks by the previous administration.

This comes after the PSC met with the business community on July 24, 2015 to discuss the recent perceived downturn in business and address matters of employee retrenchment to the sudden increase in crime, spending on Government projects and matters related to how the clearing of goods and the processing of Investment agreements are affecting the Business Community.

“The PSC is concerned that the current situation can lead to a high level of non-performing loans and is extremely concerned about the intended removal of over $60 billion in Government funds that are deposited at the Commercial Banks. There is an increased level of defaulting loans being recorded in some sectors of the Economy,” a release stated.

The PSC believes that once there is a decline in consumer expectations and spending, it can create drop in sales and profits and this concern would force businesses to freeze on hiring and inevitably the retrenchment of employees.

“Business representatives mentioned that they have noticed a drop in consumer spending and expectations. Projects are being delayed / suspended due to the cessation of payments on some projects. Foreign and local business partners have put a hold on some investments,” the release also stated.

The business community also raised concerns about the persistent “bottle necks” when doing business with the Guyana Revenue Authority (GRA).

“It is the view of the business community that GRA needs to expand its taxpayer’s bracket and focus on those individuals who have been evading taxes for too long. To this end the Minister of finance was written to and meetings were held with the top brass of the GRA and the PSC,” the statement noted too.

“The PSC has recognised that the economy has taken a downturn since 2014, but the present administration has an opportunity to restore this confidence, by releasing a budget that would stimulate spending and has in fact said this to the Government of Guyana through the Minister of Finance with whom we met some time ago. We are of the opinion that this will cause businesses to re-invest in projects, which may allow Commercial Banks to increase their loan portfolio; thus injecting needed funds into the economy,” the PSC release stated.

13 COMMENTS

  1. Guess u still brain wash by AFC and apnu . and still dreaming . wake up n see where Guyana heading . sorry u ain’t got a clue what going on ..

  2. These people want put 60b in dem pocket . d country gon get 10000 and 100000 bills soon like some of the African states

  3. Fool, the fact is the $60B dollars is money earned under the PPP that the Granger cabal inherited, so the PPP did not hand over a bankrupt country. Watch this Granger and son in law govt squander everything.

  4. The present administration should remove as soon as possible the $60B that was deposited into the commercial banks by the previous administration. Act swiftly. The funds should be where it legally belong. The money is not owned by the former government ministers and president. It is the Nation’s money and the former government should not dictate where it should be.
    I wonder why the former administration wants the money to stay in the commercial bank? Something is not right.

  5. Regardless, there is $60 billion and the PPP never stole it – it was just an assumption. So no wonder the coalition is being so reckless, they never seen this much money before.

  6. Mc Lean and Dukwho are all apologist for the PPP , i notice their propaganda is aim at creating mischief. Where is this 60BIllion they are talking about.
    It makes no sense to me a person that understands to an extent banking and governments.
    A budget to stimulate spendings without investors confidence is an angenda for disaster.
    Our biggest hope in Guyana is the UG and nobody taking me on.
    I tell you we can be the mecca of education in the caribbean surpassing the standards of UWI in the region.
    If that 60B is really available then spend 5b on UG.

  7. Fool, the 60B was deposited in commercial banks instead of the consolidated fund where it belongs. The reason the funds were deposited in commercial banks was for easy access to steal. These funds must, by law, be deposited into the consolidated fund. The govt. is not a cake shop. By the way, you still supporting the corrupt PPP. The PPP made a mess of the country in every aspect. Let the same PSC, who were supporters of the corrupt PPP, allow the govt to recalibrate the economy.

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