Guyana is set to establish a new development bank in 2026, with an initial seed capital of US$200 million, Vice President Bharrat Jagdeo announced on Thursday. The funds will be allocated in tranches, contingent on demand assessments, and will be integrated into the 2026 national budget. Jagdeo emphasized the importance of mentoring, financial literacy, and technical support to ensure borrowers can repay loans, creating a sustainable revolving fund. He expressed confidence in the bank’s success, acknowledging a potential 10% failure rate, consistent with global financial systems. The government will periodically inject additional capital as revenues grow, ensuring the bank’s long-term viability. Currently, a concept paper for the proposed bank is under development. This initiative follows the dissolution of the Guyana Cooperative Agricultural and Industrial Development Bank (GAIBANK) in 1995 due to high non-performing loans, which was later merged with the Guyana National Cooperative Bank before its closure in 2002.