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The privatisation process of the former state-owned entity was concluded yesterday among NBIC, the Privatisation Unit, the Government of Guyana and GNCB.
In a press release the Privatisation Unit said: “The acquisition of various assets and liabilities of GNCB consists of an asset base of approximately G$15.5 Billion and liabilities of approximately G$13.5 Billion for a net asset position of G$2 Billion. The net asset position will be confirmed by the audit firm Deloitte & Touche and the Office of the Auditor General.”
Head of the Privatisation Unit, Winston Brassington told the Chronicle that he is happy that the process which began about two years ago has now been concluded. He added that significant work was done during the last two years the privatisation negotiations were being conducted.
The Privatisation Unit noted that the conclusion marks an important milestone for the banking industry in Guyana, as it recognizes NBIC’s reputation of financial strength in the local banking industry. It also represents the last privatisation in the financial sector, following from the privatisation of GBTI, NBIC, GCIS, GNCB TRUST, the merger of GAIBANK and GNCB and the wind up of Guyana Co-operative Mortgage Finance Bank (GCMFB).
Prior to the sale, a Memorandum of Agreement was signed with the GNCB Staff Association last Monday providing for the terms of the severance for the GNCB staff. Under the terms of this agreement, all staff will receive severance benefits calculated at the date of privatisation.
A reduced number of persons have been rehired by NBIC effective from yesterday.
With the acquisition of GNCB now finalised, NBIC over the next eight weeks will implement the process of integrating the operations of GNBC into the NBIC network. This will involve the consolidation of some branch operations, in keeping with NBIC’s overall strategy of rationalizing the existing structures and systems for optimum efficiency.
There is not any anticipated disruption of business during the integration period and customers are urged to conduct their business as usual, unless they receive notification through the media or the post of any changes related to banking operations.
GNCB has been losing money for many years with the losses representing a call from the Consolidated Fund. The privatisation will bring an end to this and contribute to strengthening the financial sector as a whole. The current agreements exclude the loan portfolio and certain real estate that are not related to the branch network. These assets will be retained by the GNCB.