business@tribunemedia.net
THURSDAY, FEBRUARY 16, 2017
$4.20 Banks: Homeowner Bill to change ‘risk profile’ of mortgages By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Home loan costs and accessibility could largely depend on how the courts interpret the proposed Homeowners Protection Bill, the Clearing Banks Association’s (CBA) chairman warned yesterday. Ian Jennings, who is also Commonwealth Bank’s president, told Tribune Business that his own institution viewed the legislation, tabled in Parliament yesterday, as “changing the risk profile of mortgage financing”. He said Commonwealth Bank, and all other Bahamas-based commercial banks, would now have to each determine whether this impact was “material” enough to spark an increase in mortgage lending rates and/or a tightening of their borrowing criteria. Suggesting that the latter See pg b6
CBA chief: Much relies on court interpretation Warns higher rates, downpayments possible Debate started out from ‘false premise’
Labour leaders yesterday demanded that employers be held to the “same standard” over their calls for trade unions to be struck off if they are insolvent or fail to file their annual returns. Bernard Evans, the National Congress of Trade Unions (NCTUB) president, told Tribune Business that should such measures be imposed on trade unions then employers should suffer the same fate for failing to pay taxes and National Insurance Board (NIB) contributions. Still, striking a conciliatory tone, Mr Evans said he and the NCTUB would be seeking to meet with the Bahamas Chamber of Commerce and Employers Con-
$4.28
$4.23
Just 15% of insolvent broker’s assets located By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
An insolvent Bahamian broker/dealer’s liquidators have recovered just 15 per cent of its identified assets, while clawing back minimal sums from its former principal and overdrawn clients. Accountants Ed Rahming and Kenneth Krys, in their fourth and final report to the Supreme Court, said they had only been able to recover $2.6 million out of almost $17 million held in the name of Montaque Capital Partners. Disclosing that they had been handicapped in their recovery efforts by a lack of
Only $2.6m of $17m on Montaque’s books regained Principal hands over $75k despite ‘owing’ $3.5m No recovery of $2.9m from overdrawn clients Ed Rahming financing from the broker/ dealer’s former clients, the duo said their pursuit of related party transactions had yielded negligible results. In particular, they
claimed to have received just $75,000 from Owen Bethel, Montaque Capital Partners’ principal and 95 per cent majority shareholder, despite determining that he - and entities he con-
trolled - owed the broker/ dealer around $3.5 million. And efforts to recover debts from Internet Protocol Solutions International (IPSI), a communications provider controlled by current Chamber of Commerce chief executive, Edison Sumner, also proved fruitless due to the company’s lack of liquid assets. Messrs Rahming and Krys also disclosed that the inability of Montaque Capital Partners’ own assets, and its clients, to fund the liquidation had prevented them from pursuing former customers with overdrawn balances totalling $2.9 million. “We identified See pg b10
Baha Mar’s foreign creditors to get ‘3-4 cents on dollar’ offer Ian Jennings
Unions demand employers held to ‘same standards’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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Hit back at ‘nullify’ calls on insolvency, annual returns
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
Baha Mar’s remaining foreign creditors will likely receive an offer this week to pay them “three-four cents on the dollar”, the claims committee’s chairman revealed yesterday. James Smith, former minister of state for finance, told Tribune Business that the small recovery would
be paid from the remaining funds out of the $100 million made available by the China Export-Import Bank. Disclosing that the committee had paid out “in the high $90 millions” to Bahamian creditors, including contractors, vendors and former Baha Mar staff, Mr Smith said the sum available to remaining foreign creditors is likely equivalent to what they would
have recovered in a normal liquidation process. “Our work has virtually come to an end, but there’s always a little hangover,” the now-CFAL chairman told Tribune Business. “At the end of December, we had settled in the high $90 millions with all the local service providers and staff, and most of the foreign contractors. “Within this week, with See pg b12
‘High $90 millions’ already paid out by committee Last payout to come from ‘what’s left in the pool’ Delays due to wait for ‘preferential creditor’ ruling
NCTUB chief wants ‘full and frank’ Chamber meeting General secretary says proposals are irrelevant federation (BCCEC) for a “full and frank discussion” on the latter’s concerns. He added that the trade unions wanted to work as “equal partners” with the private sector for the good of the Bahamas and achieve “mutual understanding”, rather than have one side See pg b7
29% qualification rate over Mortgage Relief By NATARIO McKENZIE
Tribune Business Reporter
and NEIL HARTNELL Tribune Business Editor
A Cabinet Minister yesterday said 29 per cent of troubled borrowers contacted to-date had completed the requirements to enter the Government’s Mortgage Relief Plan, although he emphasised that this - and other legal changes were “not a panacea” for the Bahamas’ housing crisis. Michael Halkitis, minister of state for finance, said 408 delinquent mortgage borrowers, out of the 1,400 contacted to-date, had passed the eligibility test to be admitted to the Mortgage Relief Plan. He revealed the statistics while introducing the
408 out of 1,400 complete enrolment criteria Homeowner Bill to modernise mortgage lending Homeowners Protection Bill for its first reading in the House of Assembly, describing it as the “legislative centrepiece of a comprehensive response to the Bahamian mortgage crisis”. Mr Halkitis said the Bill would make troubled borrowers more secure in their home, while also upgrading lending “norms and practices which have not kept pace See pg b13
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