Several financial crises possible before economy grinds to halt – Jagdeo
Sunday , October 25 2015, Citizen’s Report, Source
“MY fear is that we may have several financial crises long before we have an economic crisis, particularly with the currency and with our banking system,” former President and Opposition Leader, Dr Bharrat Jagdeo, has warned.
At a news conference last Friday, he disclosed that in meetings with several members of the business community, concerns have been expressed, including about the most recent Bill tabled by the Government.
The Financial Institutions (Amendment) Bill 2015 was read for the first time in the House, after a request to do so was moved by Finance Minister Winston Jordan. This Bill seeks to amend Section 63 of the Act to permit disclosure of customer information by a financial institution to the Revenue Authority, where a law so requires or where the Revenue Authority makes a lawful request or demand for the information.
“There is a fear of GRA being used as a tool,” he said.
The Opposition Leader added, “Many of them probably will pull their money out of the system. If that happens you will have a large scale movement of resources, switching to US dollars or to be externalized as capital flight. This could cause a run of the banks as well as major problems with our currency.”
Jagdeo, when asked, also dismissed the claim that the former People’s Progressive Party/ Civic (PPP/C) used state agencies to target opponents. “No one can claim that,” he stressed, adding that his comment extends to even to those most critical of the Party.
Nonetheless, he made clear that the concerns at hand are real ones that must be addressed, including the creation of wealth as opposed to the evidenced focus on spending.
“I urge the government to be careful about the signals they’re sending because if that were to ever happen, we will trigger a crisis of unimaginable proportions in this country,” the Opposition Leader.
Notably, Guyana’s economy plummeted 2.5 per cent by June 2015, when compared to 2014, according to the Ministry of Finance’s Mid-Year Report.
In 2014, the growth of the economy was recorded at 3.8 per cent. A World Bank report in April 2015 stated that, “Growth slowed down in 2014 (3.8 percent) reflecting the softening in global commodity prices – mainly gold and bauxite.” However, the World Bank projected that the economic outlook for Guyana is broadly positive. “Growth is projected to remain strong, averaging about 4 percent per year over the medium.”
Guyana has recorded eight consecutive years of economic growth as at 2014.
