Commercial Banks put hold on recent cheques issued by former Government
News Source understands that the Guyana Bank for Trade and Industry Limited, Republic Bank and Demerara Bank along with at least one other commercial bank, informed staff members that they are not to cash Government of Guyana cheques that were issued recently by the former government just before it left office.
A number of commercial banks in Guyana have made a decision to put a hold on cheques issued by the former PPP Civic Administration after noticing a flurry of those cheques being issued in the lead up to the new government taking office.
News Source understands that the Guyana Bank for Trade and Industry Limited, Republic Bank and Demerara Bank along with at least one other commercial bank, informed staff members that they are not to cash Government of Guyana cheques that were issued recently by the former government just before it left office.
A senior official at one of the commercial banks confirmed the move to News Source and explained that the decision had to be taken after the bank noticed “a sea of cheques from government ministries suddenly appearing and the owners of those cheques wanting them to be cashed immediately”.
A source at one commercial bank said some of the cheques were issued just before and just after the May 11 elections. Most of the cheques were in the millions of dollars.
The source explained that some of the cheques appeared to have been prepared and written by persons who still hold government offices but are linked to the party which was just thrown out of power.
“The cheques are coming through agencies which are still being run by loyalists of the party that now finds itself in opposition. Cheques are still being written and the banks made a decision to safeguard themselves”, a source familiar with the situation explained.
Earlier this week, the David Granger administration, requested that the Central Bank put a hold on large payments that were prepared by the previous administration.
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