03072022 BUSINESS

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MONDAY, MARCH 7, 2022

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Port: No tariff rises to aid inflation fight By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU’S major commercial shipping port has pledged it will not increase any tariffs despite growing fuel and energy cost pressures that threaten its profit targets for the 2022 financial year. Dion Bethell, Arawak Port Development Company’s (APD) president and chief financial officer, told Tribune Business had had given such assurances to the Prime Minister during the latter’s meeting with wholesalers and importers as the BISXlisted company seeks to do its part in easing inflation’s impact on hard-pressed Bahamians.

ARAWAK PORT DEVELOPMENT COMPANY (APD)

• APD chief: We won’t be ‘financial burden’ to public • But rising fuel, energy costs threaten profit squeeze • Shipping gateway’s half-year profit beats goal by 5%

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

FREDERICK MCALPINE marriage” involving Freeport’s quasi-governmental regulator, the Government and Hutchison Whampoa. Asserting that the three major players in Freeport

SEE PAGE SIX

Gov’ts 25% target requires more equitable tax system By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A MORE progressive income-based tax system is needed to hit the Government’s “aggressive” 25 percent revenue-to-GDP target and prevent the gap between rich and poor widening. Gowon Bowe, a Fiscal Responsibility Council (FRC) member, speaking after it released its verdict on the 2021-2022 Budget and the Davis administration’s supplemental version, told Tribune Business he had made his views known to fellow members that The Bahamas’ current consumption-based tax system is “not the tax system of the future”.

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‘Unprecedented’: 4% Budget surplus goal for 7 straight years • Near $500m target to 50% debt ratio By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Some 90 percent of New Providence’s commercial sea freight comes through the Nassau Container Port, and the APD chief voiced optimism that it will still meet earnings projections for the 12 months to end-June 2022 without

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Freeport ‘perishing from lack of vision’ A FORMER MP yesterday said Freeport residents have been caught up in “a three-way love affair that’s gone awry”, adding: “Because of the lack of vision the people are perishing.” Rev Frederick McAlpine, who was prominent in Friday’s demonstration outside the Grand Bahama Port Authority (GBPA), told Tribune Business that businesses and inhabitants of The Bahamas’ second city were like the “children” caught up in a “bad

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He added that the Council’s report had hinted at this when it argued that the current VAT and importtariff dependent system made it less easy for the Government to target tax policy at specific sectors of the population or business community that need assistance, such as low income households. “The existing predominantly consumption-based tax system of The Bahamas limits the ability of the Government to target policies toward particular cohorts of the population, as VAT and duty exemptions are broad policy tools that are generally more costly, less equitable and less efficient than more targeted direct

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THE Government must achieve an “unprecedented and very challenging” 4 percent primary budget surplus for seven straight years to cut the debt-to-GDP ratio to 50 percent by 2030. The Fiscal Responsibility Council (FRC), in its justreleased assessment of both the 2021-2022 Budget and the Davis administration’s supplementary changes, warned that forecast fiscal trends will not be sufficient to hit the 50 percent ratio as mandated by the Fiscal Responsibility Act by the targeted 2030-2031 fiscal year. A 4 percent surplus, equivalent to $463m a year based on current nominal GDP projections, would be required for each fiscal year between 2023-2024 and 2030-2031, according to

GOWON BOWE the Council’s analysis, if the Government is to achieve its goal and rebuild vital fiscal headroom following the massive debt blow-out caused by the COVID-19 pandemic and Hurricane Dorian. Such a surplus has “never been achieved before” in Bahamian history, and Gowon Bowe, who represents the Bahamas Institute of Chartered Accountants

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Bahamas must adhere to Russia sanction consensus By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas must “act in a manner consistent” with protecting its reputation and integrity as an international financial centre (IFC) on Russian sanctions, an ex-attorney general says. John Delaney, who held the post under the last Ingraham administration, told Tribune Business that The Bahamas should stay abreast of “international consensus” on financial/ economic penalties that are imposed in response to the Ukraine invasion. Speaking after the US embassy urged The Bahamas to limit Russian access to its financial system, he voiced doubts that business from the latter nation “represents a major segment” of the international financial services sector given that it was already deemed high-risk. While no sanctions have been levied on Russia via the United Nations (UN), which would trigger international obligations on The Bahamas and all other countries to follow suit in imposing such measures, Mr Delaney said The Bahamas’ relationships with key “allies” and trading partners such as the US also have to be considered. “I would say that we ought to act in a manner that is consistent with being a responsible IFC,” he told this newspaper. “I think that we should take responsible measures that are consistent with that of the international community of which we are part..... “Otherwise there’s a real risk we’ll be considered as a jurisdiction that plays fast and loose, and takes risky business, and is not prepared to a responsible jurisdiction. I would say we should act consistently

JOHN DELANEY with the international consensus.” Western nations, such as the US, Canada, UK and European Union (EU) have already cut Russia off from Swift, the main secure messaging system that banks use to make rapid and secure cross-border payments. They have also sanctioned key Russian government figures, and many so-called oligarchs - billionaires and millionaires considered close to Vladimir Putin and the Kremlin - by seizing and freezing their purported assets and interests in Western countries. The Russian central bank, too, has seen its foreign assets frozen in a bid to isolate that nation from the world’s economic and financial systems. Mr Delaney said that, when it came to the Russia/ Ukraine situation and associated sanctions, The Bahamas has potentially more at stake than “any short-term international business issues”. He added: “There are other drivers for The Bahamas, our international relations with our allies and friends, of whom we have such substantial relations on many levels.” Pointing to The Bahamas’ strong trading and commercial links with the US, in particular, the Delaney Partners principal said “it would be a curious thing to sit on our hands and do nothing” if the international community was demanding further action. “The impact of the jurisdiction not taking steps will outweigh the taking of those steps,” he explained. “Not to do so can have a prejudicial impact for the country, the industry.” However, Mr Delaney said it was unlikely that the imposition of sanctions will have a widespread negative impact on the financial services industry. “I do not know the extent of our Russian business, but I would not guess that it represents a major segment of activity in The Bahamas,” he asserted. “In any event, I don’t think there’s likely to be any adverse impact from sanctions because it has to be a global measure. “I think there’s a consensus in the west that measures should be taken against Russian business at this time, and to the extent there’s some adverse impact here that would be limited to individual institutions or niches that have portfolios from that country. “Doing business with that jurisdiction [Russia] for some time has been suspect for one reason or another, whether it’s the oligarchs and anti-money laundering and so forth. I would say the higher tier and blue chip providers wouldn’t touch that business in the first place. The impact will not be widespread.” Russian oligarchs have had assets in, and conducted financial services business with, The Bahamas in the past. Tribune Business previously reported on a Bahamian court

case involving Arkadi and Sacha Gaydamak, former owners of Portsmouth Football Club in England, who had a legal dispute involving a local financial institution. However, most high net worth Russians are likely to conduct their financial business through London and other major financial centres, plus the likes of Cyprus and the British Virgin Islands (BVI). Gowon Bowe, Fidelity Bank (Bahamas) chief executive, yesterday said Russian access to the Bahamian financial system was already likely to have been cut-off or severely limited because the correspondent banks that this nation’s institutions use to conduct international transactions reside in nations that have imposed sanctions. And, with The Bahamas’ Register of Beneficial Ownership Act enabling the authorities, regulators and financial services industry to know who owns every corporate entity domiciled in this nation, he added that there should be no difficulty identifying Russian sanctions targets. Disclosing that Fidelity and other institutions have already been warned by their correspondents to “scrub your database and advise if you have any of them” as clients, Mr Bowe said Bahamians will “feel it more in our day-to-day lives than we are in the financial services sector” when it comes to the economic fall-out from the Ukraine invasion due to higher gasoline and energy prices. “If persons understand our financial services system, they would know we are inextricably linked to the US in terms of correspondent banks, and Europe and the UK in terms of custodians,” he added. “The fact these countries made unilateral sanctions means Bahamian institutions have to comply with them. We have to comply with our main business partners who are operating in jurisdictions that have imposed sanctions.” Asserting that Russia has not featured prominently in the Bahamian financial services industry’s client base, Mr Bowe said that nation’s oligarchs would already have been subject to “much greater scrutiny” due to concerns about the source of their wealth. “We’re in a very strong position because of the Register of Beneficial Ownership legislation,” the Fidelity chief added. “The Register of Beneficial Ownership, although criticised and a work in progress, has proven to be useful. If any of them are behind it, the Government will also have clear sight of it.” Mr Bowe, though, said The Bahamas will have to be on its guard over “any new money running” to this nation to ensure no Russian oligarchs and politically exposed persons (PEPs) are behind it.

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Monday, March 7, 2022, PAGE 3

TAXIS AND JITNEYS TO PUSH FOR FARE RISES By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

percent of maximum capacity’ restrictions imposed on passenger numbers to combat COVID. Harrison Moxey, the United Public Transportation Company’s (UPTC) head, reiterated that the sector may seek an increase in adult fares from $1.25 to $2 - a 60 percent rise. Mr Ferguson said he was “very concerned” about the rise in gasoline prices, arguing that taxi drivers consume the “lion’s share” of this product considering how many trips they make back and forth from the Lynden Pindling International Airport (LPIA) to various destinations on the island. He added: “One taxi driver could make five trips to the Paradise Island Bridge from the airport daily. Crossing that bridge

also burns up a lot of gas, plus you have to have air conditioning. A lot of people complain about taxi fares being so high, but when you look around now everything else is going up but taxi fares isn’t. “The only consolation we have at this time is that the minister [of transport and housing] is giving out more taxi plates. When you take into consideration the insurance for a taxi, if you are leasing and the two licenses that we have to pay for with BahamaHost and business license, it is an exorbitant cost to operate a taxi in this Bahamaland. “A lot of our patrons just don’t appreciate the fact that it is very expensive to own and operate a taxi in The Bahamas. But with the rising price of fuel in the world, and because

the taxi rates are basically regulated by the Bahamas government, we don’t have the luxury like the rest of the businesses who could just go up at will and they then pass the costs on to the consumer,” Mr Ferguson continued. “The taxi driver doesn’t have that luxury; our rates are set. But if gasoline goes up any more, the taxi union will have to seriously consider asking the Government for a hike in taxi prices.” Mr Moxey, the United Public Transportation Company’s (UPTC) head, added: “There’s nothing going good for us. It looks like we are left to fend for ourselves, and the high gas prices is only making a bad situation worse. “We need to get this 50 percent maximum

capacity off of us so we can start to operate in some form of normalcy. This further increases our expenditures and operating costs.” Despite the reduction in COVID-19 case numbers, and the easing of restrictions elsewhere, protocols for jitneys have yet to be adjusted. “We have to think about what’s our next step,” Mr Moxey said. “We have been trying to get the protocols on the bussing industry removed, with no luck. While COVID-19 at its highest peak affected other industries, the public buses were not affected. “We were not aiding in the spread of COVID-19 through the examination of the contact tracing, so it just doesn’t make sense to us why we have to still be battling at 50 percent?” Mr

Moxey said he was considering asking for a rise in the public bus fare for adults to $2, up from $1.25. Young children and senior citizens will remain the same. “We put our proposal in writing to the Ministry of Transport, but the timing wasn’t the best time,” Mr Moxey said. “It was at the height of the pandemic and people were still jobless, and we agreed to put it off. But we spoke to the new minister and she thinks we are deserving of a lot of the things we are requesting, but if they are not going to give us the increase then let us operate. “I don’t know what the rationale is but if they can give us some protocols and some guidelines to operate by, turn us loose and let us go.”

Realtors hope ‘best year ever’ continues into 2022

and chief operating officer, added: “I would have to say that the Family Islands, when you talk about inventory and what’s available, the popularity is on par with Nassau. “Our inquiries are tremendous for the outer islands, particularly Eleuthera and Exuma. We’re fielding so many of them, and a lot of them have never been to the country before and are ready to consider doing virtual tours, which is another aspect of COVID-19 and the restrictions. “They have brought about sales of homes without ever being to the country before, and without seeing the homes in person. People are closing on property consistently across The Bahamas in that format. So you can imagine the desire. They must have to spend, in some cases, millions of dollars on properties that they’ve never seen.” Mr Knowles said the demand for virtual tours will gradually drop as the COVID-19 pandemic falls

away. “It’s nothing like walking into a property yourself, and feeling it and touching it. For us, the great news is that the world is opening back up and

restrictions are being eased in places,” he added. “They’re being lifted. The vaccines can work for the most part and so, you know, there’s no replacement for the real thing

about The Bahamas in that some of the most beautiful real estate in the world is right here ,and there is nothing like seeing it for

TAXI and jitney drivers have warned that they may have to push for fare increases to offset the impact of increasing fuel costs on their governmentregulated businesses. Wesley Ferguson, the Bahamas Taxi Cab Union’s (BTCU) president, told Tribune Business that the sector may seek up to a 25 percent increase on their price-controlled fares depending on how high gas prices soar. With fares capped at $11 per mile, this would amount to an extra $2.75, taking prices to $13.75 per mile. Jitneys, meanwhile, are already reeling from the ‘50

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net BAHAMIAN realtors are looking to ensure that 2022 is a continuation of the “best year ever” in highend property transactions. Ryan Knowles, founder and chief executive of MAISON Bahamas, told Tribune Business that his partnership with Forbes International enhances the company’s ability to market this nation and its real estate options to a broader network of high net worth individuals. He said: “We’ve seen, because of COVID-19, wealthy individuals from different parts of the world, but mainly in our case from New York and Toronto,

moving to The Bahamas to a warmer climate, places that had less restrictions in some cases, but also just offered a better quality of life during an uncertain time. The Bahamas was one of them. “So our market has seen a lot of these folks moving here, and our market has improved greatly because of this. We had the best year ever in the history of Bahamian real estate in 2021, and we see that trend continuing in 2022. More and more people are coming and still want to come. It’s just a matter of finding the right property. They all want to be in The Bahamas, and we want them to be there as well.” Rhonda Waton, MAISON Bahamas’ co-founder chief

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PAGE 4, Monday, March 7, 2022

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RESORTS AWAIT ‘DRAMATIC’ IMPROVEMENT IN GROUPS By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE Bahamian tourism industry will enjoy “a dramatic improvement” in its group business once US federal health authorities upgrade this nation’s COVID ranking. Fred Lounsberry, the Nassau/Paradise Island Promotion Board’s (NPIPB) chairman, told Tribune Business that coming off the Centres for Disease Control and Prevention’s (CDC)

‘Level 4’ “avoid travel” warning was the industry’s most immediate target as it seeks to rebound from the COVID-19 pandemic. “We’re getting closer and closer to getting off of the CDC ‘Level 4’,” he added. “That is the next big goal to get reduced to three or better, and that’s going to be important for groups. That is really an important thing, because groups are kind of standing by and will continue to move their dates back. So that’s kind of the big missing piece right now.

“We are at ‘Level 4’ now, and I think obviously we want to go from three to two to one. You take it a step at a time, but I think the numbers I’ve seen are very positive. I know there are certain criteria that needs to be met, but I hope we’re good. “My sense is what I’ve heard is that we’re getting very close to be able to do that. So, I think once that happens will you will see a dramatic improvement in the group business.” Speaking to the Government’s plan to remove

the five-day, in-destination COVID test for visitors, Mr Lounsberry added: “Certainly, the five-day reduction is terrific, and I think we’re all hoping that very soon the US return test going back to the US, the 24-hour test, that will end sooner than later. “I know there’s a lot of very strong lobbying by the airlines to eliminate it as well as the US Travel Association. It’s impacting foreign travel to the US. So, certainly, once that has sunset, I would hope that The Bahamas would look

hard at that kind of thing for the country as well. I think the world is slowly moving back to normal, and everything I’ve heard is we’re going to have a terrific Spring Break. March is going to be terrific.” Hotels are reporting strong bookings for the entire Spring Break season, a further sign that pentup travel demand is being unleashed as persons feel more and more comfortable with travelling as COVID19 restrictions begin to ease in developed countries.

World’s largest cruise ship to visit Nassau NASSAU will this Wednesday welcome the world’s largest cruise ship, Royal Caribbean’s Wonder of the Seas, on its inaugural cruise with a water ceremony, musical entertainment and Junkanoo. The cruise line, in a statement, said thousands of passengers will have the chance to explore downtown Nassau and wider New Providence when the vessel docks from 12.30pm until 9 pm. giving guests the opportunity to explore the wonders of Nassau. The Wonder of the Seas will first embark on seven-night cruises to the Caribbean, and Royal

Caribbean’s private island destination, Perfect Day at Coco Cay in Berry Islands, from Port Everglades in Fort Lauderdale. The vessel will then head to Barcelona and Rome to kick-off summer vacations in the Mediterranean in May 2022. In November, it will returns to the Caribbean and The Bahamas from its year-round home, Port Canaveral.. “While we are pleased that the media outlets from all over the world will be reporting and engaging on social media about the awesomeness of the world’s largest cruise ship, we know that as a destination

partner, there are other stories that could resonate with international media highlighting the historic city of Nassau, the businesses and communities we support, as well as our private destination, Perfect Day at Coco Cay,” said Russell Benford, Royal Caribbean’s vice-president for the Americas. “With Wonder of the Seas, we are continuing a commitment that has resulted in five Oasis-class ships calling on Nassau, ranking it among our most popular ports. It began with the Oasis 50 years ago, and Nassau remains a premier port of call to this day.”

REALTORS HOPE ‘BEST YEAR EVER’ CONTINUES INTO 2022 FROM PAGE THREE yourself first-hand. We prefer that.” Ms Waton said properties in Exuma and Eleuthera are benefiting from Instagram, where persons are posting videos of their experiences visiting these islands. Others want to be able to “share in the experiences”. She explains: “What happens is that it is about people being able to get a great referral. If your friends have had a great time, and you feel like, you know what,

that’s somewhere I’m going to check out and go on vacation there. “They think they need this in their life. They’ve got to have this Bahamas in their life; they’re no longer satisfied. The luxury of this white sand and pink sand and aqua clear waters. They have to have it as a part of themselves. It becomes insatiable. “I’ve seen that over the years. I know that people have visited Eleuthera and Exuma, the Abacos. They all report about the hospitality that they encounter, the peace that they feel.

They just can’t do without it, and then it becomes either many trips to the island,” Ms Waton added. “Sometimes they go to the same island, or sometimes they go and check out several islands, but then they just have to have it. If they can’t afford to purchase a home, they continue to return. Or, when they feel satisfied that they are ready to semi-retire, they’d like to purchase and then they may start checking out different places themselves and it goes from there.”

Mr Lounsberry said hotels are currently at “better than 70 percent” occupancy. “Dates that I am looking at for some people are sold out. I’m talking a number of hotels. So I think it’s very positive. It’s great news,” he added. “I think March, April and, hopefully, let’s just cross our fingers that some of the other restrictions in the US, such as testing, that something happens with that and we could be strong right on through the summer and into the fall.” ROYAL Caribbean International’s Wonder of the Seas.

BAMSI: Dubai summit to aid training opportunities THE Bahamas Agriculture and Marine Science Institute (BAMSI) says its attendance at a global agriculture conference has opened up new educational opportunities for its students. BAMSI representatives were among the delegation that travelled with Clay Sweeting, minister of agriculture, marine resources and Family Island affairs, who spoke at the inaugural Food for Future Summit and Expo in Dubai. Dr Erecia Hepburn, BAMSI’s president, said: “We had an opportunity to speak to not only ministers but persons that are open to partnering with us and ensuring that our students have an opportunity, maybe, to come and train with them for brief internships. Those who were not able to provide internships, they provided scholarship opportunities. “So, I think this is a wonderful opportunity for BAMSI. We definitely

have a connection with the United Kingdom, made connections with persons in Japan, also in Australia, where our students may have the opportunity to do some things there. We are going to set up a few Zoom meetings to see how we can grow our partnerships with each other.” Dr Hepburn felt the Dubai summit was beneficial for the institute. “It was a great opportunity to network with not only colleagues globally but even the colleagues locally that we may not have the chance to network and experience with,” she added. “I’ve met Bahamians in Dubai that I haven’t seen in years, so this was a learning and growing experience, and I hope that we would have the opportunity to come back again.” BAMSI Chairman Tyrel Young, who was also part of the delegation, added that it was vital for agriculture to attend the Food for Future Summit and Expo.

“Food security is definitely at risk, and it is pleasing to me that countries are on the same wavelength in that aspect. Everyone seems to understand the pivotal role youth and women play in agriculture,” he said. “I am so delighted to see how everyone is so open to young people entering this particular sector. The agriculture sector is calling out for people to enter this sector to solve the issues because we understand that younger people understand the technology. “The Ministry of Agriculture, BAMSI and BAIC are definitely on the same wavelength when it comes to youth in agriculture. I think that’s getting where we want to be - technology wise - at a very fast pace. We need to take chances in funding these younger persons. Food security is at risk, and we must find solutions quickly.”

THE TRIBUNE

Monday, March 7, 2022, PAGE 5

The price of war A

n invading army can win all the battles and still lose the war. The objective of a military occupation, especially one driven by imperial ambitions, is to neutralise armed resistance and secure control of the centres of power, ultimately aiming to conquer the hearts and minds of the occupied. In other words, to absorb and colonise. This is what the Russian president appears to have had in mind when he assembled, and later unleashed on his Western neighbour, the largest war machine seen in Europe since the end of World War II. However, so far, events do not appear to be unfolding as he may have expected. Vladimir Putin created a narrative, into which he appears to have indoctrinated himself and his followers, that Ukraine is not a real nation. Last July, the Russian president published a 5,000 word essay asserting that both countries were essentially the same, grounding his assertions on questionable historical foundations and dismissing the current border as an artificial creation. A convolution he since held on to, repeating it several times. Crucially, Ukrainians do not agree with him. Across the entire country, Ukrainians of all ages, both men and women, came

forward, unequivocally showing to the Russian invaders, and to the rest of the world, what they think about Mr Putin’s idea, defending their land and independence with great courage and determination. The cost, however, has been immense, with their bravery and sacrifice touching many and generating an unprecedented wave of solidarity and international unity. It is impossible for Mr Putin, and those who support him, to win this war. They may, tragically, through the most obnoxious brute force, plant their flags over the destroyed buildings of Kiev, Kharkiv and other cities, but I do not believe they will succeed in subjugating the Ukrainians’ desire for independence. The invasion of Ukraine is an error of judgment and a pivotal moment in history. Vladimir Putin, and those close to him, believe their own rhetoric, blinded by the desire to re-write history, reclaim the influence lost with the fall of the Soviet Union and, above all, undermining the greatest threat to their autocracy: A strong, united, democratic

and prosperous Europe sitting on their doorstep. Mr Putin will not go down in history as a great Russian, as he would have liked. Instead, he will be remembered as the one who dragged the country into a war it cannot truly win. He gave the European Union (EU) and the wider Western alliance a renewed purpose, creating an aversion to Russian ambitions among Ukrainians that is likely to last for many generations, and bringing them ever closer to the West. Last, but not least, through his actions he brought upon his fellow Russians a devastating combination of economic sanctions that have already resulted in the downgrading of the country’s credit to ‘junk’ level by agencies such as S&P and Fitch, while the rouble crashed to a record low and is now worth less than one US cent. The global community’s reaction has been unusually consensual and robust. Several of Russia’s main financial institutions have been excluded from the SWIFT system, while VISA and Mastercard stopped accepting transactions from

SUMSKAYA STREET IN KHARKIV, UKRAINE the country. The Russian central bank, the country’s sovereign fund, and the ministry of finance are no longer able to operate in most international jurisdictions. In practical terms, this means being unable to use the country’s $600bn US dollars foreign currency reserves. Russian ships and planes are barred

from a growing number of countries, while imports of high-tech components for its industries are also blocked alongside several other crippling sanctions. Any of these restrictions would be damaging on its own – combined, they will be devastating. Right now, it is difficult to see a way out and there

is real risk of escalation as Vladimir Putin, trapped by his own ambition and pride, ominously issues thinly -veiled nuclear threats. We can only hope that the scope of international reaction and the unprecedented sanctions will, somehow, lead to a de-escalation. The alternative is too horrible to contemplate.

PAGE 6, Monday, March 7, 2022

THE TRIBUNE

FREEPORT ‘PERISHING FROM LACK OF VISION’ FROM PAGE ONE “don’t appear to be on the same page”, he agreed that Freeport’s deterioration since 2004 had been exacerbated by the failures of successive administrations to hold the GBPA’s “feet to the fire” on fulfilling the governance and developmental responsibilities that it signed up to under the Hawksbill Creek Agreement. Asked about the way forward for Freeport now, Mr McAlpine said there needed to be “proper consultation” with Freeport residents and the GBPA’s 3,500 licensees. He also suggested that the Government pressure the Hayward and St George families to find a purchaser for the GBPA and its Port Group Ltd affiliate, or acquire “a portion” itself. As to the possibility, as provided for by the Hawksbill Creek Agreement, that the GBPA’s quasigovernmental powers be devolved into an undefined local authority if 75 percent of its licensees vote in favour of such a move, the ex-Pineridge MP dismissed the notion, saying: “That’s not happening. You can forget that. It’s just not happening.” Mr McAlpine, suggesting that Friday’s demonstration had made Freeport residents and Grand Bahamians “more aware” of the city’s economic plight, said the blame could not be placed on the Davis administration which has barely been in office six months. “It lies at the feet of successive governments not ensuring the Port Authority has done what it should do, and has to do, to make Grand Bahama a better economic place,” he said. “Successive governments have not held the Port Authority responsible for where Grand Bahama should be.... “If you go back to what was agreed by the Hawksbill Creek Agreement, the responsibility for the airport and hospital lies solely with the Port Authority. The reality is that it seems like 18 years since the death of Edward St George, from that time to now, it’s been stagnation.” Freeport has never recovered from the devastation inflicted by Hurricanes Frances and Jeanne, which resulted in the closure of the Royal Oasis and 1,100 persons being made redundant, which cost the city much of its population and critical mass. And that was compounded by Mr St George’s passing several months later. Hinting that there should be changes in the GBPA’s executive management, Mr McAlpine yesterday suggested that Freeport’s quasi-governmental authority had become “another tax regime that taxes the people and doesn’t seem to be putting the money back into the island”. The GBPA extracts significant income from a variety of licence fees and service charges, and the ex-MP added of the current owners and management: “There seems to be a lack of vision. They seem to lack the ability to draw investors and investment to Grand Bahama itself. “I hate to say it this way, but it seems to have been for some time now that the Government, the Port Authority and Hutchison Whampoa, which is the Port’s partner, it seems like a marriage that has gone bad but the inhabitants of Grand Bahama are like

the children because of this fight going on, this separation going on. “It has left us, the children, the people, frustrated as regards what is going on between Hutchison, the Port Authority and the Government. It doesn’t appear that Hutchison, the Port Authority and the Government are on the same page. It’s like we’re between a rock and a hard place. You have this friction between the three,” Mr McAlpine added. “We, the inhabitants of the island, who I would call the children in this marriage, are suffering because of their relationship or lack thereof. There is basically a three-way triangle, a threeway love affair that’s gone awry. “If we’re being quite honest, nobody seems to have lived up to the Hawksbill Creek Agreement and the Government has not held their feet to the fire in terms of the Port Authority. There is a lack of vision, and because of the lack of vision the people seem to be perishing.” There is sufficient blame to go around. The Government has always been reluctant to let Freeport go, fearing it gave too much away via the Hawksbill Creek Agreement, while the GBPA - especially over the last 18 months - is seen as not having lived up to its development obligations. Hutchison, meanwhile, has dumped its loss-making assets on the Government. Little has been done to move forward with the 2o16 Memorandum of Understanding (MoU) that was signed between the Government, GBPA and Hutchison, which committed the Hayward and St George families to seek out a purchaser of their shares. It also committed the Grand Bahama Development Company (DEVCO) and Freeport Commercial and Industrial, Freeport’s two largest private landowners, to produce a 20-year ‘master plan’ for their holdings by April 26, 2017. The GBPA agreed to permit two governmentappointed directors to its Board “to achieve a more effective working relationship” between Nassau and Freeport, and “vibrant and sustained economic growth” for the latter city. The Government was also to have a direct role in real estate-based developments, after the GBPA ownership agreed to transfer their 100 per cent and 50 per cent equity interests, respectively, in the city’s two major landowners into a newly-formed company. The Government was to then acquire a 10 per cent equity interest, with a possible option for another 5 per cent stake, in the new company established to own the ordinary share capital of Freeport Commercial & Industrial and DEVCO. The Haywards and St Georges also agreed to far-reaching governance reforms, and the potential devolution of some of their quasi-governmental powers/regulatory authority, via their MoU commitments. The agreement committed them to working with the Government to create “a mechanism to ensure the exercise of the regulatory powers and functions vested in the GBPA are consistent with the national policy, regulations and laws of the Bahamas”.

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THE TRIBUNE

Monday, March 7, 2022, PAGE 7

‘UNPRECEDENTED’: 4% BUDGET SURPLUS GOAL FOR 7 STRAIGHT YEARS FROM PAGE ONE (BICA) on the Council, told Tribune Business that the Government needed to set out “the new actions, revolutionary ideas and new steps” that will achieve this goal beyond simply releasing mere figures. “Given the significant increase in public debt and upward pressures on global interest rates, in particular in the US, deliberate fiscal corrective actions by the Government are necessary to reduce the public debt to sustainable levels set out in the Fiscal Responsibility Act,” the Council’s report argued. “The current trajectory of the primary balance over the forecast period will not achieve the established fiscal and debt targets, and to achieve the target debtto-nominal-GDP (gross domestic product) ratio of 50 percent by fiscal year 2030-2031, a more aggressive primary balance trajectory is required over the medium term.” Revealing the results of a debt sustainability assessment that it had conducted, the Council added: “The results of sensitivity analyses, varying the directly controllable variable of the primary balance, indicate that the debt-to-GDP target at the end of fiscal year 2030-2031, consistent with the announced revised deadline, is only achieved if a primary balance to GDP ratio of 4 percent is achieved beyond fiscal year 2023-2024. “Attaining and maintaining this level of primary balance will be unprecedented and therefore very challenging. Further, targeting the current legislated fiscal balance threshold of a maximum deficit-to-GDP ratio of 0.5 percent will not achieve the debt-toGDP target of 50 percent by the stipulated fiscal year 2030-2031.” The primary budget measures by how much the Government’s revenue exceeds, or is less than, its fixed cost spending. Even though interest payments on the Government’s debt are stripped from this calculation, it has run a primary deficit in four of its last fiscal years. These have ranged from a low of $101m in 2017-2018 to a peak of $925.7m in 2020-2021, when the Government’s revenues collapsed due to the COVID-19 economic shutdown. And the only primary budget surplus achieved during those five years, the $114.7m attained in 2018-2019, will have to be increased four-fold for each year in a seven-year period based on the Council report. The Council’s sensitivity analysis detailed two other scenarios for the debt-to-GDP ratio. Taking a historical five-year primary balance-to-GDP ratio would bring the Government’s debt to just 68

percent of GDP by 20302031, an 18 percentage point difference. Maintaining the $310.5m, or 2.3 percent of GDP, projected for the 2023-2024 fiscal year would achieve a slightly better outcome of 60 percent debt-to-GDP by 2030-2031, which would still be 10 percentage points off target. The analysis thus gives some idea of the extent of the task faced by the Government and taxpayers to restore the nation to fiscal balance. Arguing that the Government needs to supply more details on how it will achieve its fiscal ambitions, and come back into line with the targets set by the Fiscal Responsibility Act, Mr Bowe told this newspaper: “You can make the statements and models that project that [4 percent surplus], but how are you going to achieve that when you have never done it before? “Before you get there, what are going to be the new actions? What are going to be the revolutionary ideas that are put into play, and the new steps you are going to take, to achieve such an unprecedented surplus? “That’s where there has to be more encouragement to be more detailed about your analysis of the future. The numbers can say anything, but how are you going to achieve them? In order to have credibility, in order to have trust in the numbers, there has to be steps articulated so the discerning public can tick off the boxes...this tax model changed, this expenditure generated returns.” The Council’s report also argued that the 2021-2022 Budget, and the supplementary version passed by the Davis administration, failed to set out a long-term strategy to bring the Government’s finances back into line with the Fiscal Responsibility Act targets or explain how the current Budget fits into that vision. As a result, it recommended changes to the Act. “The 2021-2022 Budget does not specify corrective mechanisms the Government expects to deploy to return to the fiscal path prescribed by the Fiscal Responsibility Act,” the report said. “ Further, the 2021-2022 Budget does not present a framework to support the sustainability of its fiscal projections or to assess its consistency with the prescribed Fiscal Responsibility principles. As presented, the 2021-2022 Budget does not clearly set out how it incorporates the aforementioned fiscal adjustments, and it does not define the fiscal period that the exceptional circumstances are expected to be extinguished.” The Government invoked the Act’s “exceptional circumstances” clause, which give it a waiver from meeting the stipulated deficit and debt ratio targets, due

to the double blow inflicted by Dorian and COVID-19. The initial targets were a deficit-to-GDP ratio of 0.5 percent or less by the 2020-2021 fiscal year, and a debt-to-GDP ratio of 50 percent by 2024-2025, but Dorian pushed these to 2024-2025 and 2028-2029, respectively. The debt-toGDP target was then moved further back to 2030-2031. “Flexibility in the fiscal rules, particularly in the context of exceptional circumstances, is required,” the Council’s report said. “However, the proposed extensions of the respective targets are not accompanied by a clear strategy to realign the fiscal accounts toward a trajectory consistent with the revised targets. “Further, consideration should be given to amending Section 13(1)(C) of the Fiscal Responsibility Act requiring prescribed timeframes within which adjusted fiscal targets are to be realised; or formal communication of planned timeframes within which adjusted fiscal targets will be realised. Such enhancements would signal the commitment to fiscal prudence and ensure that fiscal policy is appropriately anchored.” The Council also warned that the “scope” of its Budget assessment was “limited, as underlying macroeconomic assumptions and relevant estimates that support the 2021-2022 Budget have not been provided in the 2021-2022 Budget or separately to the Fiscal Responsibility Council by the Ministry of Finance”. This restricted the Council’s ability to assess “whether the Budget allocations support priorities declared by the Government, and the ability to assess the credibility of inputs and variables”.

PAGE 8, Monday, March 7, 2022

GOV’TS 25% TARGET REQUIRES MORE EQUITABLE TAX SYSTEM FROM PAGE ONE expenditures,” the Council said. “During debate on the 2021-2022 Budget, the Government communicated its commissioning of a study of the tax system of The Bahamas, and various options for tax reform. Given the inherent limitations of the current consumption-based tax system to better target tax concessions, the Council recommends that the study of the current tax system be expedited and leverage past studies to facilitate early deliberations and conclusions on the most appropriate tax system for The Bahamas. “Further, certain tax concessions accord different treatments for Bahamian nationals and foreign nationals, which presents challenges to the overall equity of the existing tax concession regime.” Tying this to the Davis administration’s plan to increase government revenues, as a share of gross domestic product (GDP), from the present 20.2 percent to 25 percent by the time its term in office ends in 2026, Mr Bowe indicated that it was unlikely to achieve this solely through greater compliance and enforcement alone. “When you make a statement as bold as you will achieve a 25 percent revenue-to-GDP target, did it get accompanied by what you will do to get there? It did speak to closing loopholes, but what it didn’t say

so explicitly is that those loopholes have existed for many years, and you would have hoped to close them before,” he added. “The last time we had any major rise in the percentage of revenue-to-GDP was when we introduced VAT. To give the general public a correlation, were only able to increase revenue-to-GDP when we introduced a new tax. That’s not to create a fear of a new tax, but with existing taxes it’s [25 percent revenue-to-GDP] not achievable.” Mr Bowe, asked whether new and/or increased taxes were inevitable to hit the Davis administration’s revenue goals, said the collection of tax arrears would get the Government part-way there but were “a finite item” that would not necessarily repeat year after year. “We’re going to have to say the consumption tax system is not the tax system of the future,” he told this newspaper, suggesting The Bahamas will have to move away from a structure where lower income earners paid disproportionately more in taxes than their wealthier counterparts. “We’re going to have to eliminate that type of anomaly where those who have the least among us pay more relative to their income,” Mr Bowe explained. “Right now they’re paying a greater portion of their income in taxes than someone earning more, and that’s inequitable. “That can lead to growing disharmony. The divide between the have’s and the have not’s is not as pronounced as in the likes of Haiti and Jamaica, but it is growing. We have to be careful that the tax system does not perpetuate a widening of that gap, but a closing of that gap.” The Council, in its report, said: “The Government has set a tax revenue to nominal GDP ratio target of 25 percent over the next five years. Based on historical tax revenue to nominal GDP ratios, the target is aggressive and will require significant reforms in tax policy and tax administration in order to be realised.

THE TRIBUNE “It will be equally important to ensure that the tax regime is simple, equitable and efficient...... Additionally, it has been announced that the former Revenue Enhancement Unit (REU) will be re-established, with expectations that the REU will collect tax revenues of around $200m over fiscal year 2021-2022 and fiscal year 2022-2023. “The strengthening of enforcement of tax collections and deterring tax delinquency should positively impact tax revenues. However, greater detail regarding the strategic and operational focus of the REU, along with quantification of areas with the greatest levels of uncollected tax revenues, is required to appropriately assess the credibility of the projected tax revenue gains,” it added. “Additionally, the effectiveness of pecuniary and non-pecuniary methods are required to be studied to facilitate the most appropriate mix of such methods to maximise tax compliance and collections..... Efforts to properly equip the tax authorities with appropriate technology will be critical for improving overall tax compliance through expanded automation for taxpayers that should improve efficiency in paying taxes.” The Council also voiced concern that at current levels “public debt service costs account for 65.6 percent of total recurrent expenditure, which equates to $0.76 of each $1 of tax revenue received being used to finance these obligations. This demonstrates the importance of continued fiscal discipline to develop and sustain a downward trajectory of public debt”. And it noted that it had not been given access to the financial modelling underpinning the VAT rate cut to 10 percent. “The assessment of public debt, outstanding liabilities including unfunded pension obligations, and contingent liabilities underscore the need for a consistent and comprehensive definition of public debt and the development of a framework to estimate and monitor contingent liabilities,” the Council said.

JOB OPPORTUNITY Busy Optometry office in New Providence looking for full time Optometrist. Must have Doctorate of Optometry degree from an accredited college of Optometry or trained at a college of Optometry from the UK. Must be licensed to practice in country of training. Must be proficient in OCT and Humphrey’s Visual Field.

opticalopportunity36@gmail.com

THE TRIBUNE

Monday, March 7, 2022, PAGE 9

PORT: NO TARIFF RISES TO AID INFLATION FIGHT FROM PAGE ONE

rate increases to match the anticipated hike in costs. “There’s no plans or intent to increase tariff rates,” Mr Bethell told this newspaper. “We’re just mindful of the current environment. The impact of inflation will certainly be a significant factor, not just for APD but for everyone. High fuel prices, the fractured supply chain as it tries to recover, the impact of what’s going on in Ukraine, all these things factor together.” APD’s tariffs impact the cost of all goods purchased by New Providence residents, and he confirmed he had given a similar assurance on its intent to hold the line when himself and some of the country’s largest retailers, wholesalers and importers met Philip Davis QC recently. “One thing we assured them of is we haven’t increased rates for eight years, and there are no plans to increase rates now,” Mr Bethell disclosed. “The greatest impact on global cargo costs is outside our control related to global shipping costs. “No assurances were made to decrease our rates, but assurances were given that we won’t be increasing them. In unique circumstances, we do what is necessary to ensure that the impact of the services we provide is not a financial burden to the general public because, over the years, we have not increased our rates. We certainly won’t be increasing them in times like this.” Mr Bethell’s assurance will provide some modest relief to hard-pressed Bahamian consumers and households already grappling with the impact from US inflation hitting 40-year highs in early 2022. As a country that imports virtually all it consumes, and with many of these goods manufactured in or transported through the US, these price rises are being passed on to The Bahamas. And the APD chief said shipping carriers are already passing on higher fuel costs to customers via the bill of lading, as oil prices soar due to a combination of increased demand as the global economy reflates post-COVID and Russia’s invasion of Ukraine. “Shipping costs have increased in the freight bill. There will be some pass through from the carriers to the importers, but on APD’s part of that bill, there will not be any increase in rates,” Mr Bethell added, urging all consumers and businesses to “remain prudent and make wise choices” to head off inflation’s impact. “I’m sure there will be some impact on our business ahead, especially since we’ve made a decision not to increase any of our rates,” he told Tribune Business. “Of course, there’s underlying costs as with any business. Fuel is an important part of our business, and the likelihood of the cost of fuel increasing is very possible.” APD’s ownership is split 40/40 between the Government and shipping industry, with Bahamian public investors holding the 20 percent balance. The Memorandum of Understanding (MoU) between the former two, which formalised the company’s creation under the last Ingraham administration, stipulates that it must make

an annual internal rate of return (IRR) of a minimum 10 percent. However, noting concerns that Bahamas Power & Light’s (BPL) fuel hedging strategy was not renewed on time, Mr Bethell said APD was also bracing for an increase in energy costs “despite our measures to contend with our solar powered system”. He added: “We still consume a lot of electricity at night for lighting of the port, so I am sure it will have some impact on our business. The overall trickle down impact of inflation as we try to emerge from this COVID environment will mean a general increase in the cost of doing business. “As it is now, we’re not certain how inflation will impact certain types of imports like vehicles. Persons will be prudent, and may make decisions to defer purchases with higher prices on the horizon.” While vehicle imports for the three months to endDecember were ahead of the prior year comparative by 17 percent, Mr Bethell added: “Our vehicle volumes remain below the pre-COVID (June 2019 to December 2019) volumes by approximately 31 percent. “We are uncertain as to how this will trend given the shortage of new cars globally due to the pandemic and the high demand of used cars globally.” However, the APD chief revealed that - while twenty-foot equivalent unit (TEU) volumes were flat for the six months to end-December 2021 - the “progressive recovery” that the company had forecast was “pretty much on track” with budget. “We were a little above budget on the bottom line, we were slightly under on expenses and slightly over on non-TEU volumes at the mid-year,” Mr Bethell said of APD’s first-half performance. “We had some project cargos that came in for Albany, Sandals and the Nassau Cruise Port. “We ended up close to 5 percent on profit profit projections. We were about 3-4 percent under-budget on expenses, and about 4 percent over-budget on non-TEU related revenues. Given the overbudget performance that we experienced through the first-half, I’m hopeful that the overall impact by year-end will put us very close to the targeted budget forecasts.” Mr Bethell said APD’s bulk tonnage volumes for the six months to endDecember 2021 were ahead of pre-COVID levels by some 64,000 tons due to major construction projects underway on New Providence. TEU volumes were down 3 percent compared to pre-pandemic levels but that gap is expected to narrow between now and the 2022 financial year’s end-June close. APD’s $4.357m first half profit is some 25 percent ahead of the prior year comparative. “Our yearto-date revenue ($15.6m) is approximately $1.4m or 10 percent above our prior year revenue of $14.2m,” Mr Bethell added. “Our year-to-date expenses ($7.2m) are approximately $327,000, or 5 percent, above our prior year expenses of $6.8m. As at (end-December 2021, EBITDA is $8.5m (compared to $7.4m) or 15 percent above the same year-to-date period prior year.”

PAGE 10, Monday, March 7, 2022

THE TRIBUNE

A CURRENCY trader walks near the screen showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Monday, March 7, 2022. Photo:Lee Jin-man/AP

BRENT CRUDE UP $10, SHARES SINK AS UKRAINE CONFLICT DEEPENS By YURI KAGEYAMA AP Business Writer TOKYO (AP) — The price of oil jumped more than $10 a barrel and shares were sharply lower Monday as the conflict in Ukraine deepened amid mounting calls for harsher sanctions against Russia. Brent crude oil surged over $10 early Monday. Benchmark U.S. crude was up nearly $9 at more than $124 a barrel. The surge followed a warning from Russian President Vladimir Putin that Ukrainian statehood was imperiled as Russian forces

battered strategic locations. A temporary cease-fire in two Ukrainian cities failed over the weekend — and both sides blamed each other. Oil prices came under additional pressure after Libya's national oil company said an armed group had shut down two crucial oil fields. The move caused the country's daily oil output to drop by 330,000. U.S. House of Representatives Speaker Nancy Pelosi, meanwhile, said the House was exploring legislation to further isolate Russia from the global economy, including banning the import of its oil and energy products into the U.S. By late morning in Tokyo, U.S. crude had jumped $9.08 to $124.74 a barrel in electronic trading on the New York Mercantile Exchange. The all-time high was marked in July 2008, when the price per barrel of U.S. crude climbed to $145.29, pushing the average price for gasoline in the U.S. above $4 a gallon, a milestone already reached again this year. Brent crude, the international standard, hit $139.13 per barrel before falling back. It was trading up $10.56 at $128.67 a barrel.

U.S. futures fell, with the contract for the benchmark S&P 500 down 1.6% and that for the Dow industrials falling 1.3%. Higher fuel costs are devastating for Japan, which imports almost all its energy. Japan's benchmark Nikkei 225 dipped 3.5% in morning trading to 25,091.93. Hong Kong's Hang Seng dropped 4.0% to 21,021.38, while South Korea's Kospi dived 2.5% to 2,648.48. Australia's S&P/ASX 200 shed 1.2% to 7,023.10. while the Shanghai Composite lost nearly 0.8% to 3,421.81. "The Ukraine-Russia conflict will continue to dominate market sentiments and no signs of conflict resolution thus far may likely put a cap on risk sentiments into the new week," said Yeap Jun Rong, market strategist at IG in Singapore. "It should be clear by now that economic sanctions will not deter any aggression from the Russians, but will serve more as a punitive measure at the expense of implication on global economic growth. Elevated oil prices may pose a threat to firms' margins and consumer spending outlook."

NOTICE NOTICE is hereby given that VERLINE PARIS of Lincoln Boulevard, Nassau, The 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 and signed statement of the facts within twenty-eight days from the 7nd day of March, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

JOB OPPORTUNITY A company is looking for an Experienced Accountant. Confidentiality, excellent organizational skills, and accuracy are important qualifications for this position. Knowledge/Skills: •

Experience with data entry, record keeping and other day-to-day financial and operational tasks.

•

Strong understanding of accounting processes and internal controls

•

Excellent leadership and supervisory skills

•

Excellent critical thinking skills

•

Excellent communication skills and customer relations

•

Excellent time management skills

•

Ability to work well with minimal supervision

•

Strong team player

•

Bachelor’s degree in Accounting/Finance

•

Proficiency in QuickBooks

Duties: •

Using bookkeeping databases, spreadsheets and software

•

Posting financial transactions using Quickbooks software

•

Receiving and recording vouchers, cash and checks

•

Entering debits and credits into software applications and databases accurately

•

Producing a variety of reports including income statements and balance sheets

•

Checking for accuracy in reports, figures, and postings

•

Quarterly VAT preparation and filing

•

Reconciling and reporting any discrepancies found in the records

email resume to chinainvestment1969@hotmail.com

PAGE 12, Monday, March 7, 2022

NOTICE

THE TRIBUNE

NOTICE is hereby given that SEYMOUR NOEL of Soldier Road, New Providence, The 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 and signed statement of the facts within twenty-eight days from the 28th day of February, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that LUIS MANUEL MATA HERNANDEZ of Simms, Long Island, The 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 and signed statement of the facts within twentyeight days from the 7th day of March, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ELROY ALEXANDER DANIEL of P.O. Box EE-17962, Spencer Close, Winton Meadows, New Providence, The 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 and signed statement of the facts within twenty-eight days from the 7th day of March, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

FRIDAY, 4 MARCH 2022

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 40.15 2.05 2.90 2.60 6.05 10.05 3.60 9.02 3.10 7.15 13.00 2.71 10.10 11.06 10.75 15.00 4.00 10.00 16.50

52WK LOW 4.55 32.12 1.46 2.20 1.30 5.50 6.00 2.82 4.25 2.27 5.00 9.75 1.99 6.50 9.50 8.40 13.10 3.42 8.00 15.50

SECURITY AML Foods Limited APD Limited Benchmark Bahamas First Holdings Limited Bank of Bahamas Bahamas Property Fund Bahamas Waste Cable Bahamas Commonwealth Brewery Commonwealth Bank Colina Holdings CIBC FirstCaribbean Bank Consolidated Water BDRs Doctor's Hospital Emera Incorporated Famguard Fidelity Bank (Bahamas) Limited Focol Finco J. S. Johnson

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 1.00

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Fidelity Bank Bahamas Class A Focol Class B

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00 100.00

52WK LOW 100.00 100.00

SECURITY Fidelity Bank (Note 22 Series B+) Bahamas First Holdings Limited

CLOSE

CHANGE

%CHANGE

YTD

YTD%

2249.42

2.81

0.13

21.18

0.95

SYMBOL AML APD BBL BFH BOB BPF BWL CAB CBB CBL CHL CIB CWCB DHS EMAB FAM FBB FCL FIN JSJ BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 96.71 93.97 94.12 91.00 90.95 89.02 89.62 89.00 90.24 90.73

MUTUAL FUNDS 52WK HI 2.50 4.67 2.20 207.86 207.68 1.72 1.83 1.81 1.05 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.68 1.73 1.75 1.01 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR106036 BGRS FX BGR117037 BGRS FX BGR118037 BGRS FX BGR125238 BGRS FX BGR127139 BGRS FX BGR127149 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1060361 BSBGR1170376 BSBGR1180375 BSBGR1252380 BSBGR1271398 BSBGR1271497 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 5.30 39.95 2.04 2.31 2.49 6.05 9.50 3.30 7.99 2.82 7.15 13.00 1.97 10.06 11.65 10.75 15.00 3.93 9.85 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 89.62 100.00 100.00 100.00

CLOSE 5.30 39.95 2.04 2.31 2.49 6.05 9.50 3.30 7.99 2.82 7.15 13.00 1.97 10.06 11.83 10.75 15.00 3.99 9.85 15.50 1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

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

VOLUME

500 6,390

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 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 89.62 100.00 100.00 100.00

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 0.00 0.00 0.00

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global Bond Fund RF Bahamas Opportunities Fund - Secured Balanced Fund RF Bahamas Opportunities Fund - Targeted Equity Fund RF Bahamas Opportunities Fund - Prime Income Fund RF Bahamas International Investment Fund Limited - Equities Sub Fund RF Bahamas International Investment Fund Limited - High Yield Income Fund RF Bahamas International Investment Fund Limited - Alternative Strategies Fund Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

MARKET TERMS

CHANGE 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 0.18 0.00 0.00 0.06 0.00 0.00

(242) 323‐2330 (242) 323‐2320 EPS$ 0.239 0.932 0.000 0.140 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

VOLUME

DIV$ 0.170 1.260 0.020 0.080 0.000 0.000 0.260 0.000 0.000 0.120 0.220 0.720 0.434 0.060 0.328 0.240 0.540 0.120 0.200 0.610 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 5.40% 5.20% 5.22% 5.00% 5.00% 5.50% 5.55% 5.60% 5.65% 5.69%

NAV 2.50 4.67 2.20 204.67 199.97 1.72 1.83 1.81 1.01 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89

YTD% 12 MTH% 0.34% 4.30% -0.06% 5.21% 0.21% 2.72% 1.37% 3.18% 8.18% 14.94% 0.26% 2.76% 0.36% 2.37% 0.28% 2.51% -1.31% -3.43% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%

P/E 22.2 42.9 N/M 16.5 N/M N/M 25.7 -7.5 57.1 15.3 15.9 18.0 19.3 21.5 18.3 14.8 18.4 19.7 10.5 24.6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

YIELD 3.21% 3.15% 0.98% 3.46% 0.00% 0.00% 2.74% 0.00% 0.00% 4.26% 3.08% 5.54% 22.03% 0.60% 2.77% 2.23% 3.60% 3.01% 2.03% 3.94%

NOTICE

NOTICE is hereby given that JORGE LUIS GARCIA CUEVAS of Cable Beach, New Providence, The 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 and signed statement of the facts within twentyeight days from the 28th day of February, 2022 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

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

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 4-Aug-2036 14-Jul-2037 13-Oct-2037 15-Oct-2038 15-Jan-2039 15-Jan-2049 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

NAV Date 31-Jan-2022 31-Jan-2022 28-Jan-2022 30-Sep-2021 30-Sep-2021 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021

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

TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | CORALISLE 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

PUBLIC NOTICE PUBLISH YOUR LEGAL NOTICES IN THE BAHAMAS’ LEADING NEWSPAPER. CALL 502-2394 TODAY!

NOTICE Ombrilliant Limited Pursuant to the Provisions of Section 138 (8) of the International Business Companies Act 2000 notice is hereby given that the abovenamed Company has been dissolved and struck off the Register pursuant to a Certificate of Dissolution issued by the Registrar General on the 14th day of February, 2022.

PAGE 14, Monday, March 7, 2022

THE TRIBUNE

DENMARK TO HOLD REFERENDUM ON JOINING EU'S COMMON DEFENSE

By JARI TANNER Associated Press HELSINKI (AP) — Denmark will hold a referendum in June, spooked by Russia's invasion of Ukraine, on whether to join the European Union's defense pact and scrap the Nordic country's 30-yearold opt-out from the bloc's common security and defense policies. Danish Prime Prime Minister Mette Frederiksen said late Sunday that "historical times call for historical decisions." Russian President Vladimir Putin "has

heralded a new time, a new reality. Ukraine's struggle is not just Ukraine's. We stand together in Europe," Frederiksen told a news conference in Copenhagen. The referendum on joining the EU's Common Security and Defence Policy, or CSDP, will take place on June 1. "It is now that everyone in the Western world must make up their minds," Frederiksen said when asked by reporters why such drastic a change in Denmark's security policies vis-a vis the EU was necessary right now. "Ukraine is the difference. A free, democratic

country is under attack from Russia," she said, adding that parties represented in her government were all supporting the referendum and related measures. Denmark would also boost military spending to meet the NATO target of 2% of gross domestic product by 2033, Frederiksen said. Denmark has certain historical opt-outs from the EU's common policies. Those include reservations related to the EU's common defense, single currency — the euro,

which it doesn't use — and judicial cooperation. The defense reservation means Denmark doesn't attend EU meetings when military operations are discussed under the bloc's auspices. Denmark's defense reservation has existed since 1992 when a majority of Danes voted no to the Maastricht Treaty that established the present day European Union. Denmark joined the European Communities, the predecessor of the EU, in 1973. It is one of the founding members of NATO, which was established in 1949.

LIBERAL Party Chairman Jakob Ellemann-Jensen and Danish Prime Minister Mette Frederiksen, right, speak to the media during a press conference in Copenhagen, Sunday March 6, 2022. Photo:Ritzau Scanpix/AP

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 89° F/32° C Low: 68° F/20° C

TAMPA

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

Mostly sunny with a gusty wind

Clear to partly cloudy

Breezy in the morning; mostly sunny

Mostly sunny and pleasant

Mostly sunny and pleasant

Breezy in the morning; mostly sunny

High: 82°

Low: 72°

High: 83° Low: 72°

High: 82° Low: 71°

High: 81° Low: 73°

High: 84° Low: 72°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

86° F

74° F

88°-74° F

88°-73° F

88°-73° F

90°-76° F

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

N

almanac

E

W

ABACO

S

N

High: 80° F/27° C Low: 73° F/23° C

12-25 knots

S

High: 83° F/28° C Low: 73° F/23° C

10-20 knots

FT. LAUDERDALE

FREEPORT

High: 82° F/28° C Low: 75° F/24° C

E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 86° F/30° C Low: 71° F/22° C

N

| Go to AccuWeather.com

High: 81° F/27° C Low: 69° F/21° C

MIAMI

High: 83° F/28° C Low: 75° F/24° C

10-20 knots

KEY WEST

High: 82° F/28° C Low: 74° F/23° C

ELEUTHERA

NASSAU

High: 82° F/28° C Low: 72° F/22° C

Forecasts and graphics provided by AccuWeather, Inc. ©2022

High: 81° F/27° C Low: 74° F/23° C

N

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

10:58 a.m. 11:29 p.m.

2.3 2.6

5:04 a.m. 0.0 5:10 p.m. 0.0

Tuesday

11:42 a.m. -----

2.1 -----

5:52 a.m. 0.3 5:53 p.m. 0.1

Wednesday 12:17 a.m. 12:31 p.m.

2.4 1.9

6:45 a.m. 0.5 6:40 p.m. 0.3

Thursday

1:11 a.m. 1:26 p.m.

2.3 1.8

7:43 a.m. 0.6 7:34 p.m. 0.4

Friday

2:10 a.m. 2:27 p.m.

2.3 1.7

8:45 a.m. 0.7 8:34 p.m. 0.5

Saturday

3:10 a.m. 3:29 p.m.

2.3 1.8

9:45 a.m. 0.7 9:34 p.m. 0.4

Sunday

5:07 a.m. 5:25 p.m.

2.4 1.9

11:39 a.m. 0.6 11:30 p.m. 0.3

sun anD moon Sunrise Sunset

6:27 a.m. Moonrise 6:15 p.m. Moonset

9:34 a.m. 11:03 p.m.

First

Full

Last

New

Mar. 10

Mar. 18

Mar. 25

Apr. 1

CAT ISLAND

E

W

High: 81° F/27° C Low: 74° F/23° C

N

S

E

W

12-25 knots

S

12-25 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 81° F/27° C Low .................................................... 68° F/20° C Normal high ....................................... 78° F/26° C Normal low ........................................ 65° F/18° C Last year’s high ................................. 81° F/27° C Last year’s low ................................... 65° F/18° C Precipitation As of 1 p.m. yesterday ................................. 0.00” Year to date ................................................. 4.37” Normal year to date ..................................... 3.20”

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 81° F/27° C Low: 74° F/23° C

High: 81° F/27° C Low: 76° F/24° C

N

High: 80° F/27° C Low: 73° F/23° C

E

W S

LONG ISLAND

tracking map

High: 82° F/28° C Low: 75° F/24° C

12-25 knots

MAYAGUANA High: 82° F/28° C Low: 77° F/25° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 81° F/27° C Low: 75° F/24° C

High: 82° F/28° C Low: 75° F/24° C

GREAT INAGUA High: 84° F/29° C Low: 76° F/24° C

N

E

W

E

W

N

S

S

12-25 knots

15-25 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday: Today: Tuesday:

WINDS SE at 10-20 Knots SSE at 8-16 Knots SE at 12-25 Knots SE at 10-20 Knots ESE at 12-25 Knots ESE at 10-20 Knots E at 15-25 Knots E at 12-25 Knots ESE at 12-25 Knots ESE at 10-20 Knots SE at 10-20 Knots SSE at 8-16 Knots SE at 12-25 Knots ESE at 10-20 Knots E at 15-25 Knots E at 12-25 Knots E at 12-25 Knots E at 12-25 Knots E at 15-25 Knots E at 10-20 Knots ESE at 12-25 Knots ESE at 10-20 Knots E at 12-25 Knots E at 12-25 Knots SE at 12-25 Knots ESE at 10-20 Knots

WAVES 5-9 Feet 4-7 Feet 1-2 Feet 1-2 Feet 6-10 Feet 4-7 Feet 5-9 Feet 4-7 Feet 6-10 Feet 4-7 Feet 1-3 Feet 1-3 Feet 1-2 Feet 1-2 Feet 4-7 Feet 3-5 Feet 4-8 Feet 3-6 Feet 8-12 Feet 5-9 Feet 2-4 Feet 1-3 Feet 4-7 Feet 3-6 Feet 2-4 Feet 1-3 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 76° F 76° F 76° F 77° F 78° F 78° F 79° F 79° F 77° F 77° F 77° F 77° F 77° F 77° F 80° F 80° F 78° F 79° F 78° F 78° F 77° F 77° F 79° F 79° F 77° F 77° F

THE TRIBUNE

Monday, March 7, 2022, PAGE 15

STOCKS TUMBLE AS WAR OVERSHADOWS ‘FANTASTIC’ US JOBS DATA By STAN CHOE AND ALEX VEIGA AP Business Writers NEW YORK (AP) — Stocks around the world racked up more losses Friday, as even a gangbusters report on the U.S. jobs market can’t pull Wall Street’s focus off its worries about the war in Ukraine. The S&P 500 fell 0.8% and posted its third weekly loss in the last four. The Dow Jones Industrial Average fell 0.5% and the Nasdaq composite ended 1.7% lower. The declines for U.S. stock indexes followed sharper losses in Europe after a fire at the continent’s largest nuclear plant caused by shelling raised worries about what’s next. Markets worldwide have swung wildly over the last week on worries about how high prices for oil, wheat and other commodities produced in the region will go because of Russia’s invasion, inflaming the world’s already high inflation. Treasury yields sank again as investors moved money into U.S. government bonds in search of safety, and a measure of nervousness on Wall Street climbed. All the movements came despite a much stronger report on U.S. jobs than economists expected, one described as encouraging and even “fantastic.” Hiring by employers last month topped expectations by hundreds of thousands of workers, more people came back into the workforce after sitting on the sidelines and jobs numbers for prior months were revised higher. On the inflation front, growth in wages for workers was slower last month than economists expected. While that’s discouraging for workers hoping to keep up with rising prices at the grocery store, for economists and investors, it means less risk the economy may be headed for what’s called a “wage-price spiral.” In such a reinforcing cycle, higher wages for workers would cause companies to raise their own prices even higher. “The COVID recovery was in full bloom in the jobs report,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. “The tricky part is the future, not the past,” he said, as U.S. crude oil prices climbed above $115 per barrel amid worries about pressure on supplies because of the Ukrainian war. “Higher fuel and food costs can eat into consumers’ budgets. Those high costs can be a boon for oil producers and farmers, but not for everyone else.”

Such concerns helped drag stocks sharply lower in the early going, though the indexes pared their losses by the end of the day. The S&P 500 fell 34.62 points to 4,328.87, and is now down just under 10% from its record set early this year. The Dow, which slid initially more than 500 points, ended down 179.86 points to 33,614.80. The Nasdaq fell 224.50 points to 13,313.44. Smaller company stocks also fell. The Russell 2000 index dropped 31.51 points, or 1.6%, to 2,000.90. In the benchmark S&P 500, more than 60% of stocks fell, with technology and financial companies weighing down the index the most. Apple fell 1.8% and JPMorgan Chase slid 2.8%. Among the gainers were utilities, health care stocks and companies that can benefit from higher oil prices. Occidental Petroleum vaulted 17.6% for the biggest gain in the index. In Europe, whose economy is much more closely tied to the conflict because of its dependence on oil and natural gas from the region, the losses were sharper. France’s CAC 40 fell 5%, Germany’s DAX lost 4.4% and the FTSE 100 in London fell 3.5%. Russian forces gained ground, shelling Europe’s largest nuclear power plant and causing a fire early Friday as they pressed their attack on a crucial energyproducing Ukrainian city. Authorities said the blaze was safely extinguished. U.S. Energy Secretary Jennifer Granholm tweeted that the Zaporizhzhia plant’s reactors were protected by robust containment structures and were being safely shut down. Trading on the Moscow exchange, after briefly opening Monday, has remained closed throughout the week. The value of Russia’s ruble continues to hover below a penny after plunging roughly 30% since the middle of last week. It now takes roughly 104 rubles to get a dollar, up from fewer than 75 at the start of the year. The ruble has dropped as Western governments imposed sanctions that cut off much of Russia’s access to the global financial system. The price of U.S. oil jumped 7.4% to $115.68 per barrel, the highest since August 2008. In July of that year, the price per barrel of U.S. crude climbed to an all-time high $145.29, pushing up the average price for gasoline above $4 a gallon. Brent crude, the international standard, climbed 6.9% to $118.11 per barrel Friday. “I don’t think the elevated commodity prices are

behind us by any means,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “As energy prices continue to rise, eventually there could be some demand destruction that will result in some peaking in the price and possibly some decline in the price of oil.” Amid the rush to safety, the yield on the 10-year Treasury fell to 1.74% from 1.84% late Thursday, a big move. It’s well below the 2% level it had reached last month, as expectations built for upcoming hikes in interest rates by the Federal Reserve to rein in inflation. Stocks had rallied in the middle of the week after Federal Reserve Chair Jerome Powell said he

IN this photo provided by the New York Stock Exchange, specialist James Denaro works at his post on the floor, Friday, March 4, 2022, in New York. Stocks around the world racked up more losses Friday, as even a gangbusters report on the U.S. jobs market can’t pull Wall Street’s focus off its worries about the war in Ukraine. Photo:Courtney Crow/AP favored a more modest increase to interest rates later this month than some investors had feared. The Fed is set to raise rates for the first time since 2018, though it has a tightrope

walk ahead because toohigh rates can choke the economy and cause a recession. Powell warned Thursday that the fighting in Ukraine is likely to further magnify

the high inflation troubling world economies. Russia is a key oil producer and prices have been rising as global supplies are threatened by the conflict.

PAGE 16, Monday, March 7, 2022

THE TRIBUNE

RUSSIAN WAR IN WORLD’S ‘BREADBASKET’ THREATENS FOOD SUPPLY By JOSEPH WILSON, SAMY MAGDY, AYA BATRAWY AND CHINEDU ASADU Associated Press BARCELONA, Spain (AP) — The Russian tanks and missiles besieging Ukraine also are

threatening the food supply and livelihoods of people in Europe, Africa and Asia who rely on the vast, fertile farmlands of the Black Sea region — known as the “breadbasket of the world.” Ukrainian farmers have been forced to neglect their fields as millions flee, fight

or try to stay alive. Ports are shut down that send wheat and other food staples worldwide to be made into bread, noodles and animal feed. And there are worries Russia, another agricultural powerhouse, could have its grain exports upended by Western sanctions.

FARMERS harvest with their combines in a wheat field near the village Tbilisskaya, Russia, July 21, 2021. The Russian tanks and missiles besieging Ukraine also are threatening the food supply and livelihoods of people in Europe, Africa and Asia who rely on the vast, fertile farmlands known as the “breadbasket of the world.” Russia and Ukraine combine for about a third of the world’s wheat and barley exports and provide large amounts of corn and cooking oils. Photo:Vitaly Timkiv/AP While there have not yet been global disruptions to wheat supplies, prices have surged 55% since a week before the invasion amid concerns about what could happen next. If the war is prolonged, countries that rely on affordable wheat exports from Ukraine could face shortages starting in July, International Grains Council director Arnaud Petit told The Associated Press. That could create food insecurity and throw more people into poverty in places like Egypt and Lebanon, where diets are dominated by government-subsidized bread. In Europe, officials are preparing for potential shortages of products from Ukraine and increased prices for livestock feed that could mean more expensive meat and dairy if farmers are forced to pass along costs to customers. Russia and Ukraine combine for nearly a third of the world’s wheat and barley exports. Ukraine also is a major supplier of corn and the global

leader in sunflower oil, used in food processing. The war could reduce food supplies just when prices are at their highest levels since 2011. A prolonged conflict would have a big impact some 1,500 miles (2,400 kilometers) away in Egypt, the world’s largest wheat importer. Millions rely on subsidized bread made from Ukrainian grains to survive, with about a third of people living in poverty. “Wars mean shortages, and shortages mean (price) hikes,” Ahmed Salah, a 47-year-old father of seven, said in Cairo. “Any hikes will be catastrophic not only for me, but for the majority of the people.” Anna Nagurney, a professor of supply chains, logistics and economics at the University of Massachusetts Amherst, said, “Wheat, corn, oils, barley, flour are extremely important to food security ... especially in the poorer parts of the globe.” With Ukrainian men being called on to fight, she said, “Who’s going to be doing the harvesting? Who’d be doing the transportation?” Egypt’s state procurer of wheat, which normally buys heavily from Russia and Ukraine, had to cancel two orders in less than a week: one for overpricing, the other because a lack of companies offered to sell their supplies. Sharp spikes in the cost of wheat globally could severely affect Egypt’s

ability to keep bread prices at their current subsidized level. “Bread is extremely heavily subsidized in Egypt, and successive governments have found that cuts to those subsidies are the one straw that should be kept off the camel’s back at all costs,” Mirette Mabrouk, a senior fellow at the Middle East Institute, wrote in a recent analysis. War-ravaged Syria recently announced it would cut spending and ration staples. In nearby Lebanon, where a massive explosion at the Beirut port in 2020 destroyed the country’s main grain silos, authorities are scrambling to make up for a predicted wheat shortage, with Ukraine providing 60% of its supply. They are in talks with the U.S., India and Canada to find other sources for a country already in financial meltdown. Even before the war threatened to affect wheat supplies in sub-Saharan Africa, people in Kenya were demanding #lowerfoodprices on social media as inflation eroded their spending power. Now, they’re bracing for worse. African countries imported agricultural products worth $4 billion from Russia in 2020, and about 90% was wheat, said Wandile Sihlobo, chief economist for the Agricultural Business Chamber of South Africa.