The use of Gold-Backed Loans to Benefit the Guyana Gold Board and Small and Medium-Scale Miners in Guyana
Abstract:
This study
proposes establishing a “gold-backed” loan facility, a scheme that would benefit
both the Guyana Gold Board (GGB) and small- to medium-scale gold miners, and,
by extension, the economy. The study uses a case study approach, and financial
modelling will be integrated to show how participants in the scheme would benefit
and, as such, will not be reliant on the informal lending that seems to be
pervasive in the gold mining sector. The gold-backed loan will lead to
increased gold declarations, higher revenue, and greatly reduced informal
borrowing by small- and medium-scale miners. The proposed facility is welcomed
by many miners who were interviewed, as well as by their organised body, the
Guyana Gold and Diamond Miners Association (GGDMA). Interviews were held with
the said Association Executives (GGDMA) and the Key Managers of the Guyana Gold
Board; all were very optimistic about the results to be derived from the
establishment of the gold-backed loan facility. The findings clearly indicated
that the programme would be worth the while, as benefits accrue to both the
Guyana Gold Board and the small- and medium-scale miners who are participants
in the scheme.
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