The use of Gold-Backed Loans to Benefit the Guyana Gold Board and Small and Medium-Scale Miners in Guyana

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.