New merchant bank will help mobilize low-cost loans for private sector and government – Demerara Waves Online News – Guyana
Updated on Thursday, July 21, 2022 at 11:23 p.m. by Denis Chabrol
A new merchant bank was officially launched on Thursday evening with the aim of injecting start-up capital into business ventures that have the potential to grow, grow and transform, as well as seek loans to favorable conditions for the government, officials said.
“None of this can happen without the necessary funding and it is this void that we have sought to fill; this is the impetus to start New Hayven,” said New Hayven Merchant Bank President and Founder, Dr. Floyd Haynes.
Referring to President Irfaan Ali’s vision for Guyana, the New Hayven boss said the country does not have enough money to fulfill this dream. “There is a huge deficit of capital or money. In other words, there is simply not enough money to finance the transformation and development of this country into a country. If you add up all the money in the country, it’s still not enough,” he added.
In this regard, Dr Haynes said some of the money would come from loans from international financial institutions and friendly governments. He said much of the needed cash needed to come from private capital, with New Hayven to play this “crucial role” through a range of financial instruments to help small and medium-sized businesses and infrastructure projects.
President Ali, meanwhile, warned against being classified as a developed or oil-rich country, but a “poor developing” country that needs to borrow loans on concessional terms because the cost of capital is significant. “Let’s not aim for classification. This will be the biggest mistake we will make. Do not rush someone to call you a citizen of a developed country. Let’s take our time. Let’s maximize the benefits of going through this phase,” Dr. Ali said.
The Guyanese leader said he expected New Hayven to go on the “hunt” for low-cost government funding.
New Hayven CEO Kurt Kisto said the bank understands Guyana’s socio-economic “realities” and is equipped to mobilize financing for both the public and private sectors. Other services offered are asset management, investment banking, wealth management, mergers and acquisitions, and real estate finance. “Our vision is therefore to be the premier investment bank delivering impact and value to investors and clients, serving as a catalyst for positive change for the country and the people of Guyana,” he said. .
The financial institution is located on Church Street, Queenstown, in the building that once housed the office of the Leader of the Opposition.
Dr Haynes and President Irfaan Ali admitted they were friends, but Mr Haynes said he did not get any special favors as the Bank of Guyana only granted the license after they were satisfied. “It’s not something that was passed on overnight. It was hard work, we persevered and we are very happy,” Dr Haynes said at the launch event at the Marriott Hotel. He also said the request had been in process for the past two years, during which time Central Bank Governor Dr Gobind Ganga had often asked for additional information.
“Dr Ali, Your Excellency it is no secret he is a friend of mine. I make no apologies for that,” said Dr Haynes who also thanked Vice President Bharrat Jagdeo with whom he had been to Africa. The President, in turn, also recognized Dr. Haynes as his friend. “Indeed, Floyd and I are friends,” he said, adding that this friendship long predated his accession to the presidency.
The US Accounting Firm of Dr. Haynes has been contracted by the US Department of State to provide accounting and financial support in over 100 countries around the world. He also served on the local content committee and leads an audit team for the cost recovery audit of ExxonMobil expenses in Guyana.
Among those who attended the event were former government ministers from the A Partnership for National Unity + Alliance For Change (UNPA+AFC) administration Joseph Harmon and Dominic Gaskin, longtime proponents of National Congress reform of the People, Vincent Alexander and Dr Richard Vanwest Charles, veteran trade unionist Lincoln Lewis and officials of the African Association for Culture and Development (ACDA). Others included senior executives from the private sector=.