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Logging companies woo banks to lend moreEarnings from forestry exports over the past year have dropped alarmingly. A worried regulator and government are now urging banks to consider innovative financing that will help loggers and others to boost production.Commercial banks are reportedly hesitant to lend for logging and other forestry activities, calling for heavy collateral amidst what they say are uncertainties.Yesterday,[url=]Cheap Jerseys From China[/url], several banks, loggers and Guyana Forestry Commission met to discuss,[url=]Cheap NFL Jerseys China[/url], among other things, the possibilities of using Timber Sales Agreement (TSA) as a means of collateral.Guyana’s booming housing sector which has been on a roll now for several years, is likely to be stymied because of low production, says long-time furniture maker, Mohabir Singh, owner of the Guyana Furniture Manufacturing (GFM).According to Minister of Natural Resources, Robert Persaud,[url=]Wholesale Jerseys China[/url], during the meeting at Sleep Inn Hotel on Brickdam,[url=]Wholesale NFL Jerseys[/url], the forestry sector is under-performing with production below the allowed levels.Representatives of the banking sector,[url=]nfl jerseys china[/url], logging companies and sawmills during the meetingMohabir Singh said that despite the meager 3.5 per cent that forestry contributed to the gross domestic product (GDP) of the country last year, there is potential to raise this to 15 per cent. This could see export earnings increase five-fold to US$250M and see 5,000 new jobs being created.The businessman was also worried that lumber is being imported to Guyana although there is evidence that Guyana has far superior woods as well as abundant supplies. He blasted a lack of cooperation among forestry operators and not enough action by the private sector.A cluster approach where several operators band together using common resources like kiln facilities and sawmills have proven unsuccessful so far although it is an approach that should be explored fully, he said.The forestry sector also has a lot of unexplored areas like the increased usage of lesser known species of wood. Recently a study found that Baromalli, a wood use mainly for making plywood, could also be used to make doors.The businessman also urged a relook at the region for its wood markets where “big bucks’ could be made. He also noted that Linden, an area where logs have to be trucked through, is ideal for a kiln drying facility.Meanwhile, the potential of the sector was plugged by Minister Persaud who noted that exports have moved significantly from US$32M in 2004 to US$41M last year.Recent concessions granted have indicated that operators will have to work deeper in Guyana’s jungles to cut logs, a fact that will require heavy investments that could only be met by the banks.There should be no worry over the Low Carbon Development Strategy (LCDS) with the forestry sector performance seeing 10,000 hectares less being harvested between October 1, 2010 and December 31, 2011.Yesterday’s event was organized by the Forest Products Development and Marketing Council (FPDMC), a non-profit organization dedicated to improving the forestry sector.According to Persaud, there “has been no shift” in Government’s policy to make forest lands available. But he called for an increase in value-added products.As a matter of fact, Persaud said, the Guyana Forestry Commission (GFC) is now making moves to upgrade the National Log Export Policy. Forestry activities are safe and an attractive investment.Also there were Chairman of the GFC, Clinton Williams and Chairman of the Forest Products Association, Hilbertus Cort.The banks present yesterday where the Guyana Bank For Trade and Industry, Scotiabank,[url=]Cheap NFL Jerseys China[/url], Citizens Bank and Demerara Bank.

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