Citibank opens representative office in Guyana as oil economy surges

GEORGETOWN, Guyana. Citibank has opened a representative office in Guyana, positioning itself to take advantage of the country's rapid economic growth and likely to help finance large capital projects, officials said this week.

The New York-based bank, the third largest in the United States, marked its arrival at a ceremony in Georgetown, saying it had already received regulatory approval from Guyana's central bank.

For now, operations are likely to be limited to a representative office rather than a commercial bank offering retail services.

US ambassador welcomes move

US Ambassador Nicole Theriot said the bank's arrival was linked to Guyana being one of the fastest-growing economies in the world.

"Citibank's decision to establish a representative office reflects confidence in Guyana and the opportunities its rapidly growing economy offers," she said. "As Guyana's economy expands and becomes increasingly integrated into global markets, strong financial institutions will be essential."

Theriot said one of Citi's first projects would be to help finance a new runway, terminal and airport at Lethem, on the south-western border with Brazil. Guyanese officials have said the project could cost US$138 million, but it is not clear how much the bank would provide.

33% growth

The announcement came two days after officials said the economy grew by 33% in the first half of the year, driven largely by oil exports from four offshore fields operated by a consortium led by ExxonMobil with Hess/Chevron and China's CNOOC.

Citi joins more than 110 American companies operating in Guyana, ranging from oil and gas and related sectors to airlines, as well as planned investment in bauxite to supply US military and commercial needs.

"After almost three decades of close relationship with Guyana without an on-the-ground presence, this new office is strategically established to enhance the delivery of products and services in the country," said Julio Figueroa, head of Citi in Latin America.

He said the office would strengthen partnerships with the government, its agencies, financial institutions and the private sector.