No sign of dramatic economic upswing - Fletcher
"No immediate signs of a dramatic national economic turnaround in the short term can be discerned [in Guyana]," Dr Gem Fletcher, chairman of the Guyana Bank for Trade and Industry (GBTI), said in her report to shareholders. Noting the impact of the global economic crisis on the various production sectors, she asserted that the usual assumptions underlying the transmission of monetary policy to output seemed unable to hold in Guyana. "Indeed, even certain fiscal incentives to targeted industries such as gold mining and forestry did not have the corresponding effects on production," she stated. Noting the effects of the turmoil of the external markets on Guyana, Fletcher said that decreased export receipts and reduced growth in investment meant less growth in the demand for credit and less funds available for savings in the banking sector. "We are, however, heartened by some of the steps being proposed to stimulate the economy and especially the private sector as they relate to finance," she said, alluding to the new securities legislation and the new insurance regulations. But given the climate described, Fletcher said GBTI is proud that its skilled and dedicated team stayed focused on recoveries, pursuing other income opportunities and providing a superior service. Meanwhile, she reported that persons using the bank's automated teller machines and point of sale terminals increased by 21% in 1998. This eased the burden on counter cashiers whilst enhancing customer convenience. "We are confident that, with our continued emphasis on quality, even as we strive to expand our customer base, we will continue to rise above the trend and retain a leadership role as we greet the new millennium," added Fletcher. She dubbed 1998 a very challenging year for the entire financial sector which was affected by reduced performance in other sectors. Maintenance of normal levels of profitability, she said, required tremendous effort. She feels GBTI was one of the better success stories of 1998, given commendable levels of income and return on assets.
|