02052019 BUSINESS

business@tribunemedia.net

TUESDAY, FEBRUARY 5, 2019

$3.99 Governor: Target ‘minimum’ 2% for GDP growth

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor yesterday said The Bahamas needs to target a “minimum” of two percent annual GDP growth as he called for “stronger inroads” into double-digit unemployment.

John Rolle argued that consistently achieving such economic expansion would ensure a “more favourable” long-term outcome for this nation, while warning that the benefits from essential structural reforms were unlikely to materialise within 18-24 months of implementation.

Speaking at the Central Bank’s first-ever quarterly press conference on the economy, Mr Rolle added that 2019’s projected 2.1 percent GDP growth rate remained within reach given that the $4.2bn Baha Mar development is now in its first full year of being totally operational.

“The prospect is still there for healthy growth

by Bahamian standards in 2019, even with a lot of the downside risks which we continue to acknowledge,” the governor said, adding that this nation was still enjoying “transitional growth” as a result of Baha Mar’s move into the operational phase.

However, International Monetary Fund (IMF) forecasts show The Bahamas returning to its long-run average 1.5 percent GDP growth rate from 2020 onwards. Should that occur, this nation will be nowhere near to meeting the 5.5 percent growth that the IMF said was necessary to cut existing unemployment by 50 percent, as well as absorb all new workforce entrants, between 2013 to 2018.

“On a potential basis, the economy needs to transition above two percent,” Mr Rolle said. “I would say not to target above three percent, but a two percent minimum would start to make things evolve a bit more favourably over the long-term.”

He added that there was “nothing very complimentary” about The Bahamas’ medium to longterm growth as projected by the IMF, and said: “We need to look at reforms to the economy to generate the higher growth potential we need long-term”.

Describing these as “structural reforms”, the Central Bank governor

SEE PAGE 5

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Chamber: Bahamas Ferries threatening ‘boating capital’

Central Bank: $100m sell-off to bar ‘excess’ credit boom

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Abaco Chamber of Commerce yesterday urged the environment minister to intervene amid fears Bahamas Ferries’ new service is endangering the island’s “boating capital” status.

Ken Hutton, its president, told Tribune Business that the inter-island transportation provider was placing Abaco’s boatingreliant tourism economy “in jeopardy” by stirring up tremendous amounts of silt and mud when it arrives and departs Marsh Harbour to serve the Baker’s Bay project.

He spoke out as Tribune Business obtained an e-mailed letter sent by the Abaco chamber requesting “immediate assistance” from Romauld Ferreira, minister of the environment, in addressing the “absolute ruin” to Marsh Harbour’s “pristine waters” just three days after Bahamas Ferries began operations from the town’s public dock.

“We are very concerned with the initiation of a new ferry service being provided

• Environment minister urged to intervene • Abaco body: ‘Pristine waters’ now ‘soup’ • ‘Hub of tourism area’ facing ‘havoc’

VIEW of a Bahamas Ferries vessel docking in Abaco.

by Bahamas Ferries to carry the staff and sub-contractors to the Baker’s Bay job site from Marsh Harbour to Guana Cay,” Mr Hutton wrote in an e-mail dated February 4, 2019.

“As the boating capital of The Bahamas and host to hundreds of sailing vessels transiting through Marsh Harbour, we are shocked and appalled that in three short days the pristine waters of our harbour have been absolutely ruined by vessels that are clearly too

large to operate in this shallow area.”

He added: “I’ve attached pictures taken this morning for your reference. Be advised that this happens up to 13 times per day. It is affecting the boats at anchor in the harbour, the four marinas that are located in the harbour, and the traffic and parking in and around the public dock being used. As a chamber we are requesting your immediate attention to the matter, as the longer it goes on,

the more permanent the damage becomes.”

Tribune Business has seen both photos and videos that confirm a significant amount of silt is being stirred up from the harbour bottom whenever Bahamas Ferries’ vessels depart for, and arrive from, the multimillion dollar investment project on Great Guana Cay. Mr Hutton, in an interview with this newspaper, confirmed that the Abaco chamber had sent an e-mailed letter to Mr Ferreira requesting his intervention. “Our primary concern is the fact that, several times a day, these vessels are coming in and stirring up the harbour,” he said.

“It’s turned Marsh Harbour into a soup. You could see the bottom, and when these things come in it silts up the entire harbour.

They’re coming in 13 times a day. We’ve got a harbour

SEE PAGE 4

Carnival cruise port to create 1,000 jobs

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE relocated Carnival cruise port will create up to 1,000 jobs and become the company’s largest such facility in the world, the prime minister said last night.

Dr Hubert Minnis, addressing a Freeport town meeting to unveil the development, said the economic benefits produced by Carnival’s investment “will reverberate throughout” The Bahamas by bringing “millions more tourists” to this nation every year.

Billing it as “a significant catalyst for economic growth in Grand Bahama”, the prime minister said: “The new port will create hundreds of jobs in the short-term, and has the potential to provide more than 1,000 direct and indirect permanent positions within the next few years as we anticipate the bulk of the on-island construction work will be done by Bahamian

• PM touts company’s ‘largest port’ for GB • Says it will be among ‘most advanced’ • Relocating from east GB to Sharp Rock contractors, and the bulk of the retail and restaurants will be owned and operated

by Bahamians.

“This major project holds the promise of a myriad of opportunities for local businesses and entrepreneurs to fulfill their own visions of success and prosperity. Grand Bahamians should prepare themselves for the potential benefits from the additional cruise passengers, including for shops, tour drivers, taxis, musicians, businesses and restaurants, hair braiders, arts and craft artisans and stores, souvenir producers and stores, and other enterprises.”

Dr Minnis called on Bahamians to develop heritage and cultural-based tours and other products to cater to Carnival’s cruise

passengers, and added: “This cruise port, which will be the largest Carnival cruise port in the world, seeks to make Grand Bahama and The Bahamas one of the best cruise destinations in the Caribbean.

“I am advised that this project promises to be one of the most technologicallyadvanced cruise ports in this region with a stateof-the-art, point of sale cashless system.”

The Carnival cruise port is a project that has been on the drawing board for more than a decade, covering both Christie administrations and the last Ingraham administration. It was originally set to be located at Williams Town before the last Christie administration signed an agreement with the cruise line to move it to

eastern Grand Bahama.

The latest version moves it into the Port area at a site near the University of The Bahamas at Sharp Rock. “The development of the Carnival cruise port has been a long time in the making. It has been discussed by successive governments, and has gone through various changes to arrive at this impressive model,” Dr Minnis conceded last night.

He also “refuted emphatically” claims made in a widely-circulated video that The Bahamas is the most unsafe cruise destination in the world, adding: “We take the issue of visitor safety very seriously.

Bahamians are known worldwide for our generosity, kindness and welcoming disposition.”

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank yesterday said it had “sold well over $100m” of its government debt holdings to prevent surplus bank liquidity from fuelling an “excessive” consumer credit boom.

John Rolle, its governor, confirmed that regularly “scheduled” secondary market sales of these debt securities would continue during 2019 as a way to “satisfy” investor demand in addition to mopping up $1.5bn-plus in excess commercial bank liquidity.

Speaking at the Central Bank’s first-ever quarterly press conference on the economy, Mr Rolle said the listing and trading of government debt securities via the Bahamas International Securities Exchange (BISX) would “definitely” be completed by mid-year 2019.

While all parties had initially targeted November/December 2018 for the government debt market’s transfer from the Central Bank to BISX, Mr Rolle said they were still “fine tuning” the system to ensure it operates smoothly for the benefit of all market participants.

The Central Bank has long identified the buildup in commercial banking system liquidity, aided by the government’s use of part of the proceeds from its $750m foreign currency borrowing in late 2017 to pay down Bahamian dollar debt, as a potential medium-term risk if it ends up financing an unsustainable expansion in consumer borrowing.

This surplus liquidity, which represents assets available for lending, has remained at elevated levels for several years because the banks can find no suitably qualified borrowers, although it declined by $265.52m - some 14.8 percent - during 2018 to close the year at $1.533bn.

However, the Central Bank’s monthly economic report for December 2018, released yesterday, confirmed that these excess assets could pose a “medium-term” threat to the external reserves that support the Bahamian dollar’s one:one peg with its US counterpart unless action was taken to reduce them in a gradual manner

SEE PAGE 5

Digital B$ pilot to ‘crystallise’ in ‘19

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank is aiming to “crystallise” its strategy for a digital Bahamian dollar test project before year-end 2019, its governor revealed yesterday.

John Rolle, speaking at the regulator’s first quarterly media briefing on economic and monetary developments, said it was “making good progress” on developing a digital currency and planned to identify communities where it could be trialled.

Confirming that further details on the proposed digital Bahamian dollar will likely be unveiled before the 2019 first quarter ends, Mr Rolle said its creation would help modernise the country’s payment system and enhance its efficiency

• ‘Good progress’ on electronic currency • Credit Bureau to go live in early 2021 • Short-term pain ‘outweighed’ long-term

GOVERNOR JOHN ROLLE by reducing reliance on cash.

He added that it also stood to boost financial inclusion, especially for “far flung” communities in the Family Islands, in terms of giving them access to a full range of financial services

and products despite the commercial bank pullout from many such destinations.

Mr Rolle added that The Bahamas’ first-ever credit bureau is set to begin operations in early 2021, which is when it will start producing its first reports on borrower creditworthiness for multiple lending institutions such as the commercial banks.

The preferred operator, Italian-headquartered CRIF SpA, is expected to have completed the licensing process “well before the end of 2019”, according to the Central Bank governor, who added that it was currently liaising with the regulator to ensure it meets

all requirements.

Mr Rolle said any short-term pain caused

by Bahamian borrowers having to get their house in order before the credit bureau’s arrival will be “outweighed” by improved lending decisions and credit allocation over the medium to long-term.

Besides keeping up with loan repayments, and ensuring they are made in full and on time, he also warned Bahamians to avoid taking on excessive debts that would raise a potential red flag for lenders due to concerns over their ability to meet due obligations

SEE PAGE 4

PAGE 2, Tuesday, February 5, 2019

THE TRIBUNE

BFSB unveils plans for annual summit T

HE Bahamas Financial Services Board (BFSB) will this year host its annual summit on Bimini from February 28 to March 2.

The 2019 International Business and Finance Summit (IBFS), titled Balancing Change with Continuity, will give attendees an in-depth briefing on the financial services industry in The Bahamas, including key international developments and market opportunities.

IBFS 2019, which will be held at the Hilton Resorts World Bimini, will discuss the way forward for the industry and attempt to define the value for clients who select The Bahamas as their jurisdiction of choice.

Tanya McCartney, BFSB’s chief

executive and executive director, said: “We invite all interested persons to participate in this significant meeting of the minds at this critical juncture for the second pillar of our economy.

“Individuals who drive international business and finance will be discussing ways to ensure that The Bahamas remains a competitive international financial centre”.

Presenters at this event include: 1.

Diego Zuluago, international policy analyst at The Cato Institute in Washington DC; John Delaney, former attorney general and senior partner, Delaney Partners; and James Smith, former minister of state for finance and former governor of the Central Bank of The

Bahamas, who will look at the future of international financial centres (IFCs).

2. Florida attorney Hal Webb, partner at Bilzin, Sumberg, Baena, Price & Axelrod, who will speak on advising Latin American clients.

3.

Michael Halkitis, former minister of state for finance and consultant, FxPro/Morgan and Drake, who will examine The Death of Privacy?

4. Linda D’Aguilar, partner at Glinton, Sweeting & O’Brien, who will present a case study on global tax enforcement measures.

5.

Christina Rolle, executive director of the Securities Commission of The Bahamas, who will explore, Fintech: Balancing innovation and regulation.

6.

Michael Allen, partner at Higgs &

Johnson, and Llewelyn Boyer-Cartwright, partner at Callendars & Co, who will address creating linkages between aviation and financial services.

7. Ryan Pinder, partner at Graham Thompson, who will speak on, Professional expertise, substantial presence: Keys to continuity.

8. Michelle Thompson, country manager, EY, and Valdez Russell, chief executive of VKR Insights, who will focus on what the Bahamian financial services industry should look like in future.

There will also be a specific focus on the international initiatives facing The Bahamas and this nation’s response; a presentation on Expo 2020 in Dubai; and an industry roundtable.

DIEGO ZULUAGO

HAL WEBB

LLEWELYN BOYER-CARTWRIGHT

LINDA D’AGUILAR

CHRISTINA ROLLE

MICHAEL ALLEN

RYAN PINDER

JAMES SMITH

REGULATOR UNVEILS ITS EXAMINATION PRIORITIES THE Securities Commission yesterday announced that its 2019 licensee examination priorities are anti-money laundering compliance and the appropriate risk-rating of clients.

The regulator’s executive director, Christina Rolle, said release of the priorities is an important element of the commission’s riskbased supervision programme because it provides the industry with insight into what it perceives as the greatest risks.

“As the commission moves deeper into its implementation of riskbased supervision, we want to demonstrate good leadership and be transparent about our risk assessments and observations,”

Ms Rolle said.

“This information will help responsible registrants and licensees to ensure they, too, are focused on these areas and, where necessary, that they take appropriate measures to manage those risk factors.”

The Securities Commission’s risk and analytics department, formed in May 2018, will be responsible for the examinations. Lesley Pearson, the department’s manager, said the priority focus areas for 2019 are: • Anti-money laundering and counter terror financing reviews of financial and corporate service providers: Examiners will be conducting focused reviews of al providers for compliance with applicable anti-money

laundering requirements, adequacy of Know Your Customer documentation and the effective management of IBCs, including the maintenance of accounting records.

• Risk management, including a self-risk assessment and client risk-rating framework: The unit will assess the effective implementation of self-risk assessment and client riskrating frameworks for all licensees, which are now required by the Financial Transactions Reporting Act 2018.

• Business conduct and risk profile: Examinations will include a review of large entities that potentially pose a systemic risk to the jurisdiction. Such firms

typically employ a large number of staff, manage a large number of client assets and have operations across multiple industries such as securities, banking and insurance. Examiners will perform an assessment of other identified risk areas, including new product lines introduced by its registrants, capital adequacy levels and corporate governance.

• Cyber security: All examination programmes will include a review of cyber security with an emphasis on disaster recovery; data management and accessibility; data protection and retention; as well as proper configuration of network storage devices.

In determining its

priority examination areas, the Securities Commission said it was guided by deficiencies identified in The Bahamas’ most recent mutual evaluation from by the Caribbean Financial Action Task Force (CFATF); the passage of the Register of Beneficial Ownership Act 2018 and the Commercial Entities (Substance Requirements) Act 2018, and the results of the 2018 preliminary risk rating exercise for all licensees and registrants.

However, the priority areas are not the sole risks that will be addressed in the Securities Commission’s examinations.

Under a risk-based supervisory approach, the nature and scope of any on-site

examination is determined by the potential risk in a licensee’s operations, products offered, financial position and other factors.

The risk-based approach helps to focus the Securities Commission’s attention where it perceives the greatest risk across more than 150 registered firms, nearly 1,000 investment funds and fund administrators, and over 350 financial and corporate service providers.

Examination results serve to enhance the Securities Commission’s risk monitoring process as well as improve industry standards, and identify and address areas of market misconduct.

THE TRIBUNE

Tuesday, February 5, 2019, PAGE 3

‘MORE QUERIES THAN ANSWERS’ OVER NHI

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net AN Opposition Senator yesterday said the revamped National Health Insurance (NHI) proposal raises “more questions than it answers”, arguing that there were “red flags” over its potential economic impact.

Dr Michael Darville, pictured, the former minister for Grand Bahama, told Tribune Business that the PLP was “eagerly anticipating” a meeting with the NHI Authority this week to

get to the “nuts and bolts” of the latest revisions.

“We are eagerly awaiting a meeting with the NHI

Authority to get all the details. We understand the importance of the launch of NHI. We are cautiously optimistic. The economy is very sluggish right now, and the implementation of a new tax on medium and large businesses is a very risky situation,” said Dr Darville.

“We have stated before that in the current economic climate it’s very difficult to talk about adding additional taxes until small and mediumsized businesses, as well as large businesses, get the full understanding of what they

are proposing and we see signs of economic recovery.

“This latest proposal still raises a lot more questions than it answers on the way forward, and we want to hear from the horse’s mouth what changes are being made and what is the way forward as it relates to the proposed start date of July 2020.”

The revamped NHI scheme is now set to cost $130m and not the $106m initially proposed. “One of our concerns was that the implementation of NHI must be with simultaneous

infrastructural improvements and upgrading the public healthcare facilities,” Dr Darville added.

“It’s going to be very hard to sell a package of universal primary healthcare while trying to create the impression that you have equity across the board from Inagua to Grand Cay, and you are not doing the necessary upgrades to meet the necessary requirements laid out by the NHI Authority/ That means that all the clinics, private and public, must meet a particular standard in order for us to provide

the service necessary.”

Dr Darville continued: “In principle I have no problem with NHI. It’s our baby; we birthed it. We were the ones who launched the first phase of the universal primary care network. Universal primary care is a must for your country.

“There are, however, financial implications that have to be watched slowly and timing is important.

Wae need to make sure we do things in a way where the programme itself can be sustainable.”

URCA TARGETS GREATER URCA TARGETS ‘SYMBIOTIC’ POLICYMAKER RELATIONSHIP ENERGY SECTOR IMPACT

By NATARIO MCKENZIE

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net THE Utilities Regulation and Competition Authority (URCA) yesterday said it plans to focus more heavily on the electricity sector this year after failing to impact the sector as hoped.

Stephen Bereaux, the regulator’s chief executive, speaking with Tribune Business at a policymakers forum, said: “We have kind of turned a corner hopefully with mobile competition.

We’re happy about that. We, however, have not had - as an organisation - the impact on the electricity sector that we really want to have.

“There are particular challenges, both from a structural perspective and, obviously, legacy issues that have to be addressed. It is very difficult as a regulator coming in new to a sector that has its own issues while you’re trying to

make changes to help the sector get on a path to provide better services.

“You’re trying to bring new technologies and approaches into a sector that has operated without your interference for a long time with varying degrees of success.”

Mr Bereaux added: “We are very much planning this year to focus on the electricity sector. We have spent quite a bit of time trying to understand how it works, and trying to understand the rationale and priorities behind those operators and priorities for the government.

“If we are to process and meet government goals for renewables, reliability and for pricing, decisive action has to be taken not only by the sector but by URCA. We have come to the point where that has to be our focus this year.”

Mr Bereaux said it

has been two years since URCA took over regulatory responsibility for the electricity sector, and it has taken that amount of time to assemble a team capable of regulating the sector.

He added that URCA is also revving its consumer protection process “both through the regulations and how we resource ourselves as an organisation to provide an effective recourse for people who are aggrieved.

“Competition still leaves people out. It’s never perfect,” Mr Bereaux said.

“There are always going to be people who are aggrieved, and we do have cases where we have found that our processes have to be improved.

“We have found we are not as responsive in some cases or we just don’t know.

The country still has a culture of not complaining to the people who need to hear the complaint. We grapple with that on a daily basis.”

To advertise in The Tribune, contact 502-2394

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Utilities Regulation and Competition Authority (URCA) yesterday said it was working to ensure it has a “symbiotic” relationship with policymakers, each having a clear understanding of their roles and responsibilities.

URCA has partnered with the Public Utilities Research Center (PURC) from the University of Florida’s Warrington College of Business to conduct a series of regulatory briefings for senior ministers and MPs. Stephen Bereaux, URCA’s chief executive, told Tribune Business: “URCA has been around since 2009 as a regulator of the electronic communications sector. We have had a very busy time over the years regulating that sector and introducing competition.

“Most recently, in 2016, we started as regulators of the energy sector. What we found is that regulation is a new issue for The Bahamas; that is, true independent

regulation. For it to work well in a society as intertwined as this one, you have to have a clear understanding of the roles of the regulator, government and the operators, all of which should be a very symbiotic relationship, with everyone clear on what their roles are and what their responsibilities are and what they are not.”

He added: “We decided to bring in some very experienced people who have been teaching government policymakers and regulators for decades on these very issues to help us, together with some key stakeholders from within government, to discuss and

internalise these issues.

“We want to ensure that URCA is effective, and that the Government and operators are all working optimally together to create the right framework and deliver the best quality for service.”

Shannon Cartwright, the St Barnabas MP described the forum as a “timely” one.

“It gives us the opportunity to see the relationship between policy makers, URCA and how they work together in collaboration to try to produce the best type of utility we can for the people of The Bahamas, and how those relationships can make for a better process,” he added.

PAGE 4, Tuesday, February 5, 2019

THE TRIBUNE

Chamber: Bahamas Ferries threatening ‘boating capital’ FROM PAGE ONE full of sail boats. Marsh Harbour is the sail boat capital of the country. You have these people spending a lot of money to come and vacation here, and they’re immediately surrounded by these boats and vessels.

“They’re disturbing the sail boats,” Mr Hutton continued. “It’s causing havoc with the marinas. We have four marinas surrounding Marsh Harbour and none of them are happy about it. It’s not the ideal solution. These boats should not be coming into a prime tourist destination, and then there’s the traffic congestion.

“It’s affecting the hub of our tourist area in Marsh Harbour. For the last two years we’ve seen a significant increase in tourism.

This could, and it is, putting it in jeopardy. I’d like to see these vessels moved out of

Marsh Harbour. They do not belong in Marsh Harbour. I understand that on Saturday they had to wait for a couple of hours to offload because the tide was too low. It’s just not a workable solution.”

Mr Hutton’s and the Abaco chamber’s letter ended with a call for Mr Ferreira to examine a matter they branded “most urgent”.

Separately, another Abaco-based source, speaking on condition of anonymity, told Tribune Business that the size of Bahamas Ferries’ vessels, and the frequency with which they were using Union Jack Dock, was discouraging sail boat visitors from coming into Marsh Harbour because this was the location where they tie-up their dinghies.

As a result, they argued that Marsh Harbour businesses were being deprived of much-needed consumer

spending by a key segment of Abaco’s high-end visitor base. “It’s obvious the ferry contract is not going to work the way they wanted,” the source said of Bahamas Ferries.

“They used the public dock again this morning in defiance of what the prime minister wanted. There’s also some problems loading and offloading when the tides are too high.”

The source added: “Our biggest fear is the traffic congestion, as there’s nowhere for those people to park.

Every side street, every corner, they’ve got vehicles everywhere. It wasn’t too bad on Friday because a lot of people [Baker’s Bay employees and sub-contractors] stayed away. They turned out in full force this morning and it’s total chaos.

“I don’t know what the solution is. What they’ve got there now is

infuriating the locals.”

Tribune Business reported on Monday Bahamas Ferries was said to have pledged it will not continue using Marsh Harbour’s public dock in defiance of orders issued by its third largest shareholder - the prime minister.

Dr Minnis, who will have taken no part in the company’s affairs since becoming prime minister, is listed in Bahamas Ferries’ 2017 annual returns - widely circulated on social media - as owning 305 of the company’s 5,015 ordinary shares - or just six percent.

The company’s main shareholders are the Symonette Group, the vehicle for investments made by Craig Symonette and his family, and V Shipping Ltd, which is thought to be an entity controlled by investor Peter Vlasov.

James Albury, the Abaco

parliamentary secretary in the Prime Minister’s Office, previously told Tribune Business that the inter-island transportation provider had promised not to persist in using Union Jack Dock - but yesterday’s events suggest this pledge has yet to take effect.

He confirmed that Dr Hubert Minnis had given “a directive” that Bahamas Ferries was not to use Union Jack Dock, a public dock, for the embarkation/unloading of Baker’s Bay personnel or the berthing of its vessels, given that this would involve using the facility for a commercial purpose.

Besides the use of a public dock and the traffic congestion/parking concerns, there are allegations that Bahamas Ferries proceeded to develop a paved parking lot adjacent to Union Jack Dock without the necessary construction/

planning approvals from local government.

Roscoe Thompson, head of the Marsh Harbour/ Spring City township, and a member of the local district council, told Tribune Business: “We had a big objection to them coming and clearing a large property with no permits and permissions granted. That was our question. They didn’t have a permit and went straight to drilling wells and improving the land.

“I found out legally we can get a stop work order put on them under the Local Government Act. If they put any fill or tar on the property we will pursue that stop work order, petition for it to be included.

“We’re not trying to be a**holes about it. We want to support local Bahamian businesses, but we want to make sure they go about it the proper way.”

Digital B$ pilot to ‘crystallise’ in ‘19 FROM PAGE ONE should unforeseen situations strike.

The Central Bank governor said that apart from identifying risky or delinquent borrowers, the credit bureau would also help those with strong “track records” of meeting their

obligations to obtain lower interest rates and better repayment terms. He even indicated that lenders may be willing to extend salary deductions beyond government employees.

Revealing the status of key Central Bank initiatives, Mr Rolle said of a digital Bahamian dollar:

“We’re making good progress, and expect at some point in the first quarter of this year to be making some public announcements on this project.

“It’s still our intention, at some point in 2019, to crystallise our views on what a pilot project will look like.

That will include identifying

communities or a sub-set of communities we can use for the pilot.”

The Central Bank, in an Expression of Interest (EOI) tender unveiled last August, which sought bids for the design and implementation of a digital currency, said it was targeting the launch of an electronic Bahamian dollar by 2021.

It added that it was aiming to roll-out a trial version “within 30 months”, with the move central to its efforts to “accelerate” payments system modernisation and introduce technology-based financial services (fintech) to reduce Bahamians’ reliance on cash and combat the loss of physical bank branches as institutions withdraw from the Family Islands.

Mr Rolle yesterday said these objectives were unchanged, explaining: “It should allow us to overcome a lot of the challenges from the high amount of cash used in the economy.

“To the extent of providing banking, financial services in more far-flung parts of the country, the business model has to account for the consideration of getting cash in and out. If we go electronic, it eliminates significantly the reliance on cash and the incentive for banks to remain there.

“To the extent persons are using electronic means to make and receive payments, and make deposits with respect to their financial institutions, a better functioning electronic system will put more consumers in reach of traditional banking services, they will still have access to their accounts, and use electronic infrastructure to make payments.”

The Central Bank’s EoI document from last

summer suggested it was becoming “increasingly less feasible” for commercial banks to provide a physical presence in sparsely populated islands. The solution to “financial inclusion”, it added, was through the provision of electronic and digital payment services, possibly using technology such as blockchain.

Mr Rolle, meanwhile, said the Central Bank expected The Bahamas’ first credit bureau to be operational “in less than two years from the identification” of CRIF SpA as the operator, an event that occurred last month.

This implies that delinquent Bahamian borrowers, be they individuals, households or companies, now have until early 2021 to bring their obligations current before their access to fresh credit/loans is potentially blocked or, at a minimum, made much more expensive.

“We would expect the bureau operator to have gone through the licensing process well before the end of 2019,” Mr Rolle said. “So right now they would be in communication with the Central Bank in terms of understanding what the required processes are around completing the licensing process.

“In order to get to this stage, they had to present a credible position that is able to satisfy those requirements.

They’re really just interfacing with the Central Bank to make sure they put in place what is required to get the operation established.”

Before the credit bureau becomes operational, it must first collect information on Bahamas-based borrowers from all institutions mandated by the Credit Reporting Act to supply it with such details, such as the commercial

banks. It must then process this data into a usable format that can be accessed by such institutions seeking information on loan applicants’ histories.

“That will become a reality within less than two years from identifying the operator; two years from the point of reality,” Mr Rolle said of the credit bureau’s likely operational start date.

As for the adjustment its arrival will require of borrowers, both from a practical and cultural perspective, the Central Bank governor added: “We’re not too concerned about how the system reacts upfront.

“What’s more important is the framework allows for better decisions around credit. Long-term that is going to outweigh any adjustment in the short-term.”

Besides meeting debt repayment obligations in full and on time, Mr Rolle advised Bahamian borrowers to ensure they have “a comfortable level of debt” that is manageable enough to prevent them defaulting if “unexpected events” strike.

He warned that financial institutions will be watching carefully to ensure there is such breathing room, adding that individuals should have “no more than two-thirds of their salary at the upper end going to payments on loans assuming there’s a mortgage in that”.

Acknowledging that many Bahamians were heavily indebted outside the commercial banking system to the likes pay day lenders and furniture stores, Mr Rolle said the credit bureau would positively impact good borrowers through lower interest rates and better repayment terms while also changing the behaviour of others.

Second Pyramid Limited (in Voluntary Liquidation) Reg. No. 157302B Notice is hereby given that the final meeting of the creditors has been scheduled for Thursday, 28 February 2019 at 9:00 am Bahamas Time at the office of Intelisys, 2 Caves Professional Centre, Caves Village, Nassau, Bahamas. Any creditor entitled to attend the meeting can do so either in person or by telephone.

The purpose of the meeting is to present the final report of the Liquidator, to answer any questions the creditors might have on the liquidation, and present resolutions related to the books and records and dissolution of the company.

Confirmation of Attendance 1.

Attendance in Person: Please provide written confirmation of your attendance before 12:00 PM EST on Tuesday, 26 February 2019 by email or letter to Intelisys, at the address detailed below.

2.

Attendance by Telephone: Please provide written confirmation of your telephone attendance before 12:00 PM EST on Tuesday, 26 February 2019 by email or letter to Intelisys, at the address detailed below. The teleconference details will be provided upon receipt of the aforementioned confirmation.

Contact Email to:

By Hand or Mail to:

Dated this 5th day of February 2019 Edmund L. Rahming Official Liquidator

Shakara K. Johnson: sjohnson@intelisysltd.com Attn: Second Pyramid Limited c/o Intelisys P.O. Box SP-64064 Nassau, Bahamas

THE TRIBUNE

Central Bank: $100m sell-off to bar ‘excess’ credit boom FROM PAGE ONE and lessen the risk of a credit boom.

“The elevated liquidity levels in the local banking system could place negative pressures on external reserves over the mediumterm if deployed to fuel excessive consumer credit demand,” the Central Bank report confirmed.

It is for that very reason, and also to reduce the government’s reliance on the Central Bank to purchase its debt, that the Central

Tuesday, February 5, 2019, PAGE 5 Bank has begun to lower its holdings of government securities by selling them to institutional investors and others on the secondary market.

This is where the buying and selling of securities takes place after their initial issuance, and sales to the banks - which will see them exchange cash for government debt - will help to mop-up this excess liquidity in a controlled manner.

“I know that we’ve sold well over $100m in debt off the Central Bank’s balance sheet in the secondary market, and that programme will continue in 2019,” Mr Rolle said.

“Even with these sales we see the seasonal fluctuation in the system.

“Generally speaking, we see there is the investor demand for more of

the government debt that exists. This is a way to satisfy that some of that demand. We’ve been regularly scheduling securities market sales, and I think we have one of these issues scheduled for this month, February. On a regular basis we will be making available the bank’s holdings for investors to purchase.”

Some 47.7 percent, or $126.71m, of 2018’s $265.52m decline in surplus commercial bank liquidity occurred during December.

Mr Rolle explained that this resulted from “at least one public entity’s swapping of foreign currency debt into local currency”, which “caused a larger seasonal decline in bank liquidity during the final month of the year and, similarly, for the year”.

The Central Bank

governor, meanwhile, said the government debt market’s transition from the regulator’s operational/ administrative oversight to listing on BISX was “progressing very well”.

“We had an initial target of getting it fully set-up by November/December last year,” Mr Rolle said of the transfer. “At this stage there’s some fine tuning behind the scenes to make the system work smoothly. It’s strictly a technical [issue] of making sure the system interfaces and functions smoothly.”

Asked when the BISX switch would be completed, the Central Bank governor replied: “I would say definitely before the end of the first half this year. I would like to say the end of the first quarter, but am giving it before the

end of six months.”

Keith Davies, BISX’s chief executive, last week told Tribune Business that the exchange was “in the final stages” of preparing to list and trade billions in government debt - a move he hailed as “a watershed”.

He added that the anticipated listing of 100 separate Bahamas Government Registered Stock (BGRS) and Bahamas Government Stock (BGS) debt tranches represented a “game changer” for the exchange after a near two-decade wait for this to happen.

The Central Bank, in unveiling the new structure aimed at creating “a more efficient and vibrant” market for government debt securities last November, said it was intended to “promote more efficient market trading and

better pricing of the bonds through market bidding”. It was due to create the Bahamas Government Securities Depository (BGSD), which is to act as the “registrar and transfer agent” for government debt, by November 26 last year.

Mr Davies, for his part, said of the benefits: “You have information, transparency in terms of what’s happening in the market and, more importantly, have a place where buyers and sellers can go to list and trade securities.

“You don’t have to guess what’s available. It will be presented in a very transparent fashion, and all persons will have an element of price discovery that didn’t exist before the listing on BISX, and which is vital to the development of the marketplace.”

Governor: Target ‘minimum’ 2% for GDP growth FROM PAGE ONE warned that such adjustments - while much-needed - would not “materialise in an 18-24 month period” and pay dividends in the short-term. While he did not identify these structural changes, Mr Rolle was likely referring to energy reform and multiple “ease of doing business” improvements.

He warned that, barring “accelerated” foreign direct investment (FDI) inflows, The Bahamas will be almost totally reliant on tourism industry growth that is unlikely to create enough jobs to match the labour force expansion driven primarily by up to 6,000 annual high school leavers.

“In the absence of a more accelerated pace of FDI inflows, employment gains would remain substantially tied to tourism growth, and would require sustained, stronger inroads to keep up with labour force participation expansion,” Mr Rolle said.

“The economy’s strengthening, as data from the Department of Statistics show, generated higher employment, but not at a fast enough pace to reduce the unemployment rate.

This is an important indicator in assessing the health of the lending environment, and prospects around the speed of non-performing loans (NPL) reduction.”

The Department of Statistics’ November labour force survey showed that The Bahamas’ national unemployment rate rose by 60 basis points, from 10.1 percent to 10.7 percent, over the six months from May 2018. The raw number of jobless Bahamians, around 25,000, was little changed from the figure

two years earlier in November 2016.

Mr Rolle said FDIfinanced construction projects were vital to absorbing labour, much of it semi-skilled and unskilled, with this sector as equally important as tourism when it came to impacting shortterm unemployment.

He said that despite 2018’s $50.5m fall in the amount of bank credit classified as non-performing, meaning loans 90 days or more past due, there were still too many Bahamian borrowers struggling to meet their obligations.

“The fluctuation in shortterm arrears throughout the year underscore that, at the margin, a sufficient number of borrowers still teeter on the brink of difficult financial circumstances,” the Central Bank governor added.

“Although the December data revealed some increase in arrears in the shorter-term category of overdue loan payments, non-performing loans or delinquencies of over 90 days continued to fall. In fact, for the year, the nonperforming loans total fell by approximately $50.5m and non-performing loans decreased as a shared of total private loans to 9.1 percent from 9.9 percent at the end of 2017.

“It should be noted that, other than write-offs and debt restructuring, domestic banks are also protecting their balance sheets by continuing to increase their provisions for credit losses, which are now budgeted at 85 percent of all non-performing loans.”

Mr Rolle said there was scope for commercial banks to expand their lending “especially if the government were able to achieve the targeted reduction in its own borrowing needs in line with its medium-term fiscal

consolidation strategy”.

Private sector credit contracted by $104m in 2018, a lesser fall-off from the $161.3m decline in the prior year. Central Bank data showed that consumer credit fell by $79.6m, a more accelerated pace than 2017’s $49.9m drop. However, the decline in mortgage and business loans lessened to $15.1m and $9.4m, respectively, compared to $78.8m and $32.6m the year before.

Still, Mr Rolle said the Bahamian economy’s modest economic growth had persisted through yearend 2018. “A key indicator of the economy’s uptrend was the strongly elevated level of foreign currency inflows through the banking sector, and equally robust domestic demand for foreign exchange for payments for imported goods and services,” he added.

“The data show, for example, that gross foreign exchange inflows through commercial banks increased by about $1.1bn to $5.5bn during 2018, while outflows through banks kept strong pace, increasing at almost an identical rate.

“The elevated foreign exchange outflows spoke to supplies imported to support tourist operations, investment projects, and to higher spending by Bahamian households and businesses more generally.”

Mr Rolle said the VAT rate increase to 12 percent, and Bahamas Power & Light’s (BPL) heightened fuel surcharge, had increased consumer price inflation through September 2018 compared to the prior year.

He added that there were “no material negative threats to external reserves”, which ended 2018 at $1.198bn- some $211m lower than at yearend 2017. “The Central Bank anticipated this

outcome. The public sector largely drew down liquidity which it created in 2017, through the external

borrowing which occurred,” Mr Rolle said.

“External reserves, however, remained at healthy

levels, and continued to experience a net positive contribution from the private sector in 2018.”

PAGE 6, Tuesday, February 5, 2019

THE TRIBUNE

NISSAN DECISION SEEN AS SIGN OF BREXIT BUSINESS JITTERS LONDON Associated Press

WITH Brexit just seven weeks away, Britain’s ruling Conservative Party was locked in tense negotiations with itself yesterday to rework the UK’s divorce deal with the European Union — as the EU stood firm in ruling out any renegotiation.

Meanwhile, pro-EU and pro-Brexit UK politicians traded allegations about whether Nissan’s decision not to build a new SUV in northern England was the latest Brexit-induced damage to Britain’s economy.

Britain is due to leave the bloc on March 29, and many businesses fear economic chaos if there isn’t an agreement on the rules and conditions that will replace the 45 years of frictionless trade that came with being an EU member. The uncertainty has already led many firms to shift some operations abroad, stockpile goods or defer investment decisions.

Nissan announced over the weekend that it has decided not to build the X-Trail model at its existing UK plant in Sunderland,

GERMAN Chancellor Angela Merkel, left, shakes hands with Japanese Prime Minister Shinzo Abe prior to their meeting at Abe’s official residence in Tokyo yesterday.

England, cancelling plans announced two years ago after May’s government promised to ensure the carmaker’s ability to compete after Brexit.

The company said it instead plans to consolidate production of the next generation X-Trail at its plant in Kyushu, Japan, where the model is currently produced. It will continue producing three other models at the Sunderland plant, which employs 7,000 people.

The company said it had made the decision “for business reasons”, and it comes amid falling sales of diesel vehicles in Europe.

But Nissan added that

“the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future”.

UK Business Secretary Greg Clark — a proponent of keeping close economic ties with the EU — said yesterday that Nissan regarded the risk of a no-deal Brexit as “a source of damaging uncertainty”. He said executives at the firm had “commented on the need for us to come together and resolve the question of our future trade relationship with the EU”.

The automaker’s decision is a blow to the government, which in 2016 offered Nissan incentives to stay

in Britain. Yesterday, the government published a previously secret October 2016 letter from Clark to Nissan promising up to 80 million pounds ($105m) in support for the Sunderland plant.

The letter also said Britain would “seek to maintain the closest possible economic relationship between the UK and our European partners” and would try to ensure that carmakers’ “ability to export to and from the EU is not adversely affected” by Brexit.

Carmakers are particularly concerned about Brexit because they rely on complex supply chains of parts from multiple countries.

With Britain’s Parliament at odds over Brexit, Prime Minister Theresa May gathered pro-Brexit and pro-EU Conservative lawmakers into an “alternative arrangements working group” seeking to break the deadlock. The group was holding three days of meetings with ministers and civil servants to investigate possible changes to the EU divorce deal, which was rejected by Parliament last month.

The changes centre on replacing a measure known as the backstop, designed

to keep an open border between the United Kingdom’s Northern Ireland and EU member state Ireland.

The border area was a flashpoint during decades of conflict in Northern Ireland that cost 3,700 lives.

The free flow of people and goods across the near-invisible frontier now underpins both the local economy and Northern Ireland’s peace process.

May’s office said she plans to travel to Northern Ireland today to meet business leaders and make a speech underscoring the government’s commitment to avoiding a hard border.

But it’s less clear than ever how Britain plans to achieve this.

The EU insists the Brexit withdrawal agreement can’t be renegotiated, and has already rejected some of the arrangements under discussion in London, including a time limit on the backstop and unspecified technological solutions to customs checks.

EU Brexit negotiator Michel Barnier said that backstop remains “the only operational solution available” for an orderly exit of Britain from the EU. Irish Foreign Minister Simon Coveney accused

some British politicians of seeking “to essentially do away with an agreed solution between the UK government and EU negotiators and to replace this with wishful thinking”.

German Chancellor Angela Merkel also said the agreement couldn’t be renegotiated, although questions surrounding border arrangements could be addressed in a declaration on the future relationship between the EU and Britain.

Speaking during a trip to Japan, she said a Brexit agreement was still possible, but first “we must hear from Great Britain how they envision that”.

May hasn’t spoken to EU leaders since Wednesday, a day after British lawmakers instructed her to seek changes to the Brexit withdrawal agreement she had spent a year and a half negotiating with Brussels.

But May’s spokesman, James Slack, denied that the Brexit process was deadlocked. He said the government was working with “urgency” on border solutions.

“What we are doing right now is working at home on the proposal we will take to Brussels,” he said.

NOTICE

NOTICE

MFINANCE INVESTMENT CONDOMINIUM

BARBOSSA LIMITED

In Voluntary Liquidation

N O T I C E IS HEREBY GIVEN as follows:

Pursuant to provisions of s.14 of the Investment Condominium Act, 2014 notice is hereby given that the dissolution of the above Icon commenced January 29th, 2019.

MMG FUND SERVICES (BAHAMAS) LTD. situated at P.O. Box CB-13937, Suite 102 Saffrey Square, Bay Street and Bank Lane, Nassau, Bahamas is the liquidator.

LIQUIDATOR ______________________

(a) BARBOSSA LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 31st January, 2019 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Blue Seas Administration Ltd., The Bahamas Financial Centre, Shirley & Charlotte Streets, Nassau, Bahamas Dated this 5th day of February, A. D. 2019 _________________________________ Blue Seas Administration Ltd. Liquidator

MARKET REPORT MONDAY, 4 FEBRUARY 2018

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 2,060.61 | CHG 1.80 | %CHG 0.09 | YTD -48.84 | YTD% -2.32 BISX LISTED & TRADED SECURITIES 52WK HI 4.50 20.91 7.50 5.39 1.60 0.56 3.68 10.20 6.60 4.85 12.50 2.74 1.78 8.21 6.30 13.20 6.99 4.47 13.50

52WK LOW 3.50 19.17 4.90 3.34 0.90 0.18 2.10 8.70 6.10 3.54 9.01 2.30 1.50 7.25 6.10 10.10 5.85 3.25 12.51

1050.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 ##########

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

Bahamas Note 6.95 (2029) BGS: 2015-1-3Y BGS: 2014-12-5Y BGS: 2015-1-5Y BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-3Y BGS: 2015-6-5Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-3Y BGS: 2015-10-5Y BGS: 2015-10-7Y

BAH29 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

NOTICE CALLENDER AVIATION LTD. (In Voluntary Liquidation)

NOTICE is hereby given in pursuance of Section 218(e) of the Companies Act, 1992 as amended by the Companies (Winding-up Rules Amendment) Act, 2011 that the Members of the above-named Company by resolutions passed on the 31st day of January 2019, authorized the voluntary winding up of the Company and the appointment of GSO CORPORATE SERVICES LTD. of 303 Shirley Street, Nassau, The Bahamas as the Liquidator.

All persons having claims against the above-named Company are requested to submit particulars of such claims and proof thereof in writing to the Liquidator, GSO CORPORATE SERVICES LTD., 303 Shirley Street, P. O. Box N-492, Nassau, Bahamas not later than the 11th day of March, 2019 after which the books will be closed and assets of the Company will be distributed.

LAST CLOSE 4.42 17.43 7.00 5.39 1.60 0.56 2.29 9.50 6.16 4.40 10.99 2.63 1.78 8.70 6.30 12.85 6.98 3.62 13.01

CLOSE 4.42 17.43 7.00 5.39 1.60 0.56 2.29 9.50 6.16 4.40 10.99 2.66 1.78 8.76 6.30 12.85 6.98 3.62 13.50

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.06 0.00 0.00 0.00 0.00 0.49

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME

217

500 1,000

VOLUME

EPS$ 0.147 0.932 -0.306 0.323 0.085 0.000 -0.523 0.700 0.480 0.154 0.627 0.102 0.209 0.000 0.481 0.762 0.578 0.277 0.631

DIV$ 0.120 1.260 0.000 0.240 0.000 0.020 0.000 0.710 0.220 0.120 0.620 0.060 0.060 0.084 0.280 0.500 0.150 0.130 0.600

P/E 30.1 18.7 N/M 16.7 N/M N/M -4.4 13.6 12.8 28.6 17.5 26.1 8.5 N/M 13.1 16.9 12.1 13.1 21.4

YIELD 2.71% 7.23% 0.00% 4.45% 0.00% 3.57% 0.00% 7.47% 3.57% 2.73% 5.64% 2.26% 3.37% 0.96% 4.44% 3.89% 2.15% 3.59% 4.44%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00% 0.00% 0.00% 0.00% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75% 6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

MATURITY 19-Oct-2022 ############### 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

MUTUAL FUNDS 52WK HI 2.20 4.21 2.03 182.41 158.55 1.60 1.74 1.68 1.11 6.99 8.54 6.15 10.52 11.46 10.46 10.00 8.69 11.79

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.54 1.68 1.62 1.08 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.20 4.21 2.03 182.41 158.55 1.60 1.74 1.68 1.11 7.43 8.57 6.57 10.37 11.68 10.32 9.92 8.69 11.79

YTD% 12 MTH% 3.57% 4.03% 1.65% 1.76% 2.18% 2.45% 2.08% 3.47% 3.35% 5.94% 4.30% 4.30% 2.60% 2.60% 3.40% 3.40% 1.46% 1.46% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69% -0.71% 0.16% 3.96% 7.75% 8.34% 14.88

NAV Date 30-Nov-2018 30-Nov-2018 30-Nov-2018 30-Sep-2018 30-Sep-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 31-Dec-2018 30-Nov-2018 30-Nov-2018 30-Nov-2018 30-Nov-2018 30-Nov-2018 30-Nov-2018 30-Sep-2018 30-Sep-2018 30-Sep-2018

MARKET TERMS BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00 52wk-Hi - Highest closing price in last 52 weeks 52wk-Low - Lowest closing price in last 52 weeks Previous Close - Previous day's weighted price for daily volume Today's Close - Current day's weighted price for daily volume Change - Change in closing price from day to day Daily Vol. - Number of total shares traded today DIV $ - Dividends per share paid in the last 12 months P/E - Closing price divided by the last 12 month earnings

YIELD - last 12 month dividends divided by closing price Bid $ - Buying price of Colina and Fidelity Ask $ - Selling price of Colina and fidelity Last Price - Last traded over-the-counter price Weekly Vol. - Trading volume of the prior week EPS $ - A company's reported earnings per share for the last 12 mths NAV - Net Asset Value N/M - Not Meaningful

DATED this 5th day of February, A.D., 2019.

GSO CORPORATE SERVICES LTD. Liquidator

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

THE TRIBUNE

LIZ WESTON

By LIZ WESTON Associated Press GAYLEN Rust must have seemed trustworthy to the people who gave him money.

Rust was a longtime businessman in Layton, Utah, where he ran a coin shop started by his father in 1966.

Rust also founded a charity called Legacy Music Alliance that funded arts programmes in schools. An admiring 2013 profile in The Salt Lake Tribune called Rust “the state’s biggest proponent of arts education”.

Federal and state regulators, however, say Rust was running a Ponzi scheme. Civil lawsuits filed late last year by the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Utah Division of Securities say Rust, his wife and one of his five children persuaded hundreds of friends, customers and business associates across the country to invest more than $200m in a bogus silver trading pool.

When scam artists target groups of people who know each other or have something else in common, such as religion, it’s known as “affinity fraud”. And it’s one big reason why you shouldn’t rely solely on recommendations from friends and family when choosing a financial adviser.

“If anything, word-ofmouth recommendations are even more important to the con artists than to the legitimate adviser,” says Barbara Roper, director of investor protection for the Consumer Federation of America.

“Where else are they going to find their victims?”

Asking friends and family for referrals isn’t a bad way to begin your search for an adviser, Roper says. Just don’t assume your loved ones have done their due diligence.

The people who invested with Rust ignored several big

Tuesday, February 5, 2019, PAGE 7

Liz Weston: Don’t let others pick your financial adviser red flags. According to the actions filed: • He wasn’t registered in the securities industry.

• He claimed consistently high returns, saying he averaged 20 percent to 25 percent annually and never less than 12 percent.

• He didn’t use a third party, such as a brokerage firm, to issue account statements and instead provided investors with spreadsheets showing purported transactions.

Promises of high returns with little or no risk are a classic sign of fraud, as are statements generated without supervision by a third party, Roper says.

Advisers who aren’t actual scam artists may still have checkered histories. One research team found that one out of every 14 advisers registered with Financial Industry Regulatory Authority, a private self-regulatory organiation, had records of serious misconduct such as fraud, forgery or unauthorized trading. Thirty percent of that group had multiple offenses, says Mark Egan, a professor at Harvard Business School and a co-author of the study.

“Advisers who have engaged in the misconduct in the past are five times as

likely to engage in misconduct again in the future,” Egan says.

Even advisers who don’t run afoul of regulators can be bad news if they don’t put their clients first or are simply incompetent. To protect yourself, Roper recommends the following steps to vet financial advisers: MAKE SURE THE ADVISER IS PROPERLY REGISTERED. Financial advisers should be registered either as a broker/dealer or as an investment adviser, Roper says. You can start at BrokerCheck, FINRA’s free online tool. If the person you’re checking out is an investment adviser rather than a broker, the tool will send you to the Investment Advisor Public Disclosure database. Either way, you should see their employment and disciplinary histories.

TAKE ANY DISCIPLINARY HISTORY SERIOUSLY. Sometimes minor complaints end up in the databases, but typically the misconduct reported is serious, Egan says. At the very least, it’s worth talking to the adviser about what you find if you’re already a client. If you haven’t hired this person, keep looking, since most advisers never run

NOTICE Notice is hereby given that BIANCA McINTOSH of Marsh Harbour, Abaco, Bahamas is applying to the Minister responsible for nationality and Citizenship, for Registration/ Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written signed statement of the facts within twenty-eight days from the 5th February, 2019 to the Minister responsible for Nationality and Citizenship, P.O.Box N7147 Nassau, The Bahamas.

afoul of regulators.

LOOK FOR, AND VERIFY, THE RIGHT CREDENTIALS. People offering money advice should

have at least one credential that signifies a rigorous financial education and adherence to a code of ethics, such as certified financial planner

(CFP) or chartered financial analyst (CFA), Roper says.

CPAs who are personal financial specialists (PFS) meet requirements similar to a CFP.

PAGE 8, Tuesday, February 5, 2019

THE TRIBUNE

CAN MAKE A DIFFERENCE IN THE LIVES OF THE CHILDREN AT RANFURLY

T

he Ranfurly Homes for Children has been a safe haven for thousands of Bahamian children since 1956. The Home provides a safe, structured environment for children who have been orphaned, abused, neglected or abandoned.

YOU can make a difference in the lives of the children at Ranfurly. With your support children can have nutritious food, warm beds and a safe environment where they can discover the joy of being children. For years the children living and learning at Ranfurly have made great social and academic strides.

Their further development requires additional support in the form of a Transitional Home, planned for construction on the Ranfurly property.

This residence will cater to teenagers and young adults who are beyond school age, but need accommodation while they find work and gain independence from the Home.

We look forward to your continued support in this worthwhile endeavour.

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Invitations to Ranfurly events Assist with fundraising events Involvement with special activities Adults are eligible to join the Board after three months • Stay in touch with Ranfurly through website and newsletters

BENEFITS

• Personal fulfillment in knowing you are impacting lives • Ranfurly children’s appreciation and positive response • Continued support provides stability and constant care

For more information visit: www.ranfurlyhome.org Please “Like” us on Facebook Ranfurly Home for Children, Mackey Street P.O. Box 1413 Nassau, Bahamas 242-393-3115