04062020 BUSINESS

business@tribunemedia.net

MONDAY, APRIL 6, 2020

$3.89

$3.89

‘The worst decision I’ve ever had to take’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A

MAJOR Bahamian hardware retailer’s principal yesterday said it was “the worst decision I’ve had to make in my life” to temporarily lay-off nearly 70 staff in response to the COVID-19 pandemic.

Brent Burrows, CBS Bahamas (Commonwealth Building Supplies) chief, told Tribune Business that with zero revenue coming in the company had to do what was necessary to “survive” so that employees had jobs to return to once the virus threat has passed.

Echoing what is likely to be the sentiments of many Bahamian employers forced to close by the nationwide lockdown, Mr Burrows pledged that the firm would do everything in its power to “make it right” for its staff as he warned that the private sector and wider economy face “a long climb to get out of this one”.

He spoke out after

• CBS Bahamas chief’s despair for 70 staff • But temporary lay-offs critical to ‘survival’ • Unable to wait for govt tax credit/deferral Tribune Business received a copy of an April 1 letter, addressed to employees at CBS Bahamas and Aluminum Fabricators, confirming the company’s decision to initiate temporary lay-offs due to the pandemic.

The letter, signed by Mr Burrows, said: “As a result of COVID-19 and the shut down of all our business operations since March 20 we will temporarily lay-off all employees as of April 1, 2020....

“We are all in limbo as to how long COVID-19 will affect our country, but we must do our part and remain at home and follow the direction of the authorities so that we can reduce the spread of the virus and minimise the deaths.”

Mr Burrows said CBS Bahamas’ human resources officer was now “in the

Bahamas needs ‘asue mentality’ for its recovery

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas must “pool resources like never before” if it is to successfully jump-start the economy once COVID19 has passed, a banker urge yesterday, adding: “We need that asue mentality.”

Gowon Bowe, pictured, Fidelity Bank (Bahamas) chief financial officer, told Tribune Business that institutions and individuals with liquid resources to invest must “lose selfishness” and deploy such capital into businesses and industries likely to produce the

quickest post-pandemic bounce back.

Warning that The Bahamas’ economic structure means it is simply not equipped to undertake a multi-billion dollar stimulus

SEE PAGE 6

$700m needed to support up to 100,000 jobless

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE government needs to borrow $700m from the domestic banking system to support household incomes given that the jobless total may reach sixfigures, a Bahamian banker warned yesterday.

Julian Brown, pictured, president and chief executive of BISX-listed Benchmark (Bahamas) president, told Tribune Business that the tourism industry’s shutdown and

subsequent national lockdown threatens to send between 70,000 to 100,000 Bahamians to the jobless queue to seek National Insurance Board (NIB) assistance.

SEE PAGE 6

process of completing all necessary paperwork in order that we may submit to the National Insurance Board (NIB) so that you can receive the unemployment benefits due to you...

“CBS is committed to you, and assures you that we will do everything in our power and resources to rebuild our staff and company.”

Mr Burrows yesterday told this newspaper that CBS Bahamas had been waiting to hear the details surrounding the government’s $60m tax credit and deferral initiative, which is aimed at companies its size in a bid to provide payroll support and ensure they retain a collective 10,000 jobs.

This programme would give companies such as CBS Bahamas some $600,000, or $200,000 per month,

over a three-month period, split equally between a non-refundable tax credit and deferred VAT/business licence payments which will have to be paid back in instalments during 2021 once the pandemic has passed.

K Peter Turnquest, the deputy prime minister, said the initiative was intended to enable companies to cover payroll for non-executive staff via a combination of government monies and due taxes provided firms committed to retaining 80 percent of their pre-crisis workforce. However, the details sought by Mr Burrows and others have not been forthcoming.

As a result, he and CBS Bahamas have been left with no alternative but to

SEE PAGE 6

$3.93

$3.99

Super Value chief slams ‘chaos’ on lockdown move

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net SUPER Value’s principal yesterday said inadequate warning of the weekend lockdown caused late Friday “chaos” at food stores with police officers even threatening to shoot unless persons went home.

Rupert Roberts told Tribune Business that the three hours’ notice given by the prime minister’s 5pm address sparked a rush to his chain’s supermarkets, with many customers unable to obtain essential items - and staff racing to ensure perishable goods did not go bad - before the 8pm lockdown deadline took effect.

Arguing that Bahamians and residents should have been given more warning of the government’s intentions than three hours to prevent further panic-buying, Mr Roberts also questioned its newly-published food shopping schedule.

He said it should be implemented in mid-week, pointing out that persons

RUPERT ROBERTS whose names begin in “P” through to “Z” will have to wait until Tuesday to restock following the weekend lockdown - something he described as a long time, especially for those who failed to reach food stores before they closed on Friday.

Mr Roberts, who also suggested that the lockdown was not aligned with the typical Friday night pay received by weekly workers (those still employed), added that the absence of Saturday and Sunday in the government’s shopping

SEE PAGE 7

PAGE 2, Monday, April 6, 2020

THE TRIBUNE

GOVT IDENTIFIES $300M IN COVID-19 FUNDING COVID-19 TO ‘ABSOLUTELY’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE government has to-date identified $300m in funding it can access should the COVID-19 pandemic force it to go outside its revised post-Dorian financing structure.

K Peter Turnquest, deputy prime minister, told Tribune Business: “We have lined up already money from the IDB (Inter-American Development Bank), as well as from the CDB (Caribbean Development Bank).

“We have the opportunity for drawing rights at the World Bank if we have to, so that’s the primary sources. We have identified $300m so far. We have no plans of going back to the IMF (International Monetary Fund) at this point.”

Mr Turnquest had previously indicated that accessing the IMF’s $200m “rapid response” credit facility was a last resort option that the government was a long way from considering. It had also rejected a similar offer over Hurricane Dorian, adding that IMF funding was “not part of the financing mix”.

The government’s pandemic response to-date has been to repurpose financing from within the revised budget framework

approved after Hurricane Dorian, as it seeks to remain within the $677.5m deficit target unveiled for 2019-2020.

The funding sources referred to by Mr Turnquest may include part of the IDB’s $100m contingent credit facility, which was established to provide emergency response financing in the event of a disaster.

The government was only planning to draw on $80m of that facility, and it subsequently also obtained a $50m CDB loan to help Dorian-related reconstruction. Both lenders also represent obvious sources of new funding amid the COVID-19 pandemic.

Mr Turnquest added: “Things are changing obviously every day, and nobody knows where the bottom is on this and how rapidly the needs will develop over the next couple of weeks. So the best we can do is ensure that we have available enough resources to meet the immediate demand, and we will do that by shifting whatever we need to shift and we will see what happens after that.”

Zhivargo Laing, former minister of state for finance during the last Ingraham administration, told Tribune Business: “I don’t think anybody at this point can say that $300m is enough,

$500m is enough or even $600m is enough for anything.

“This is an evolving situation, but my own impression is that $300m is a modest level of borrowing for what is likely to be the country’s fiscal need moving forward, especially considering the hit the country has taken.

“But again, at this point, that might be the level of borrowing for this phase of things, and they can - as time goes on - evolve into new considerations. The prime minister said recently he is putting a team together, and maybe that team will look at the short, medium and long-term prospects for the country and what is needed and required then.”

Mr Laing, turning to suggestions by the opposition’s finance spokesman, Chester Cooper, that the government should seek to borrow up to $2bn to “shore up” the economy, said: “I thought that he certainly is recognising the size of the problem that we are faced with economically, but borrowing that kind of money can’t be frivolously considered.

“You have to take into account many things, not least of which is your local market - whether the government borrowing lots of that money in the local market means you are going to have some crowding

out of some borrowing for the private sector, which is going to be important for you going forward after the crisis.

“When you take into account that level of borrowing, you have to take account of your own local capacity to supply it. If the local [banking] sector can’t supply all of that money then you have to look at the foreign market, and then you have to look at the extent to which borrowing huge sums of money leverages you for the future and puts you in a more precarious situation should another external, negative shock hit you. That is another consideration that has to be made,” Mr Laing said.

“Whatever the level of borrowing the government has to do, it has to be very carefully considered, balanced against all of the fiscal and monetary implications of doing that.

So I could not flippantly say to the government you should borrow up to $2bn, but it may well be that the government may need to borrow up to that amount of money.

“There has to be a thorough analysis that brings the government up to that point along with a very careful consideration of how you proceed with that level of borrowing.”

CAUSE BUSINESS CLOSURES

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net A CHAMBER of Commerce director has warned there will “absolutely” be permanent business closures across the Bahamian economy once it emerges from the COVID-19 pandemic.

Tara Morley, who is also the Bahamas Federation of Retailers (BFR) co-president, told Tribune Business of the likely impact on the retail sector: “I think probably the scariest thing right now is that there is no end in sight. So it’s very unclear who is going to be able to make it depending on the duration of this worldwide crisis coming out of this.

“In addition to the stress of the global crisis, it’s the obvious impact on our local economy. That is even more stressful given that we are so reliant on tourism. I think especially given the fact that we already had one crisis this year with Hurricane Dorian, and then having to deal with this there is certainly going to be some business fall-out after this period.

“With that said, it will depend on the category of retailers. For instance, grocers are still going to be going strong, the same way with pharmacies, and with

a tonne of reconstruction efforts going on for Dorian I would imagine that the contractors are going to be OK as well. But there is a lot of uncertainty. Goods that are considered non-essential may have a larger fall-out like gift items, jewellery and clothing,” Ms Morley added.

“It is really unclear, and especially for categories that are reliant upon tourism shoppers, they are obviously going to be experiencing difficulties for quite some time.

So we will see by the end of the day where it may all shake out in the end.”

As for Bay Street and downtown Nassau, Ms Morley added: “The resurgence of downtown is going to be heavily reliant on when borders are going to be re-opened, and given that cruise ships have suffered tremendously during this period considering that they have had really bad experiences with COVID-19 on-board, again it is unclear on when that business is going to come back here.”

“We are really going to be reliant on the whole world coming together to identify a vaccine or a treatment, or some form of rapid testing, so that we can at least survive somewhat from a full economic shutdown until they at least can identify a vaccine. Basically it is extremely uncertain.”

THE TRIBUNE

Monday, April 6, 2020, PAGE 3

BROKER REFUTES REGULATOR’S ‘PONZI SCHEME’ ASSERTIONS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FORMER Bahamasbased broker/dealer last night accused the Securities Commission of failing to understand a business model that the regulator had branded “akin to a ‘ponzi’ scheme”.

Guy Gentile, principal of SureTrader and MintBroker International, told Tribune Business via e-mail that his firm’s operating model had withstood previous Securities Commission audits and been “in good standing” with the regulator prior to late 2019’s legal battle over its attempt to suspend the broker/dealer’s licence.

The Securities Commission’s concerns, never publicly revealed before, have been exposed by legal filings in the New Jersey federal court which reveal that the Bahamian regulator had also become alarmed by Mr Gentile’s company allegedly “diverting clients’ funds to an unregulated entity” located in Canada.

Friday’s filings by the Securities & Exchange Commission (SEC), the US capital markets regulator which is also embroiled in a legal battle with Mr Gentile, also highlight worries that Sure Trader/ Mint Broker - previously known as Swiss America Securities - had set-up overseas subsidiaries to which the Bahamian broker/dealer would pay “referral” fees without these being disclosed to clients.

These details were contained in a September 18, 2019, letter to Mr Gentile by Christina Rolle, the Securities Commission’s executive director, outlining the reasons for regulator’s decision to suspend his

company’s licence and continuing registration for a five-day period.

As previously reported

by Tribune Business, Mr Gentile and Sure Trader/ Mint Broker were successful in obtaining a Supreme Court injunction to halt the five-day suspension through their attorney, Opposition leader Philip Davis QC. Mr Gentile subsequently closed his Bahamian business, resulting in what he said was the loss of 60-80 jobs, with client accounts transferred to a new broker in St Vincent and the Grenadines.

Referring to a meeting between herself and Mr Gentile on September 12, 2019, Ms Rolle cited two practices by Sure Trader/ Mint Broker that the Securities Commission deemed “wholly unacceptable... and must cease immediately”.

She added the name change from Swiss America Securities “remains unapproved by the Commission”, and said: “These matters are also a source of grave concern.”

Setting out the Bahamian regulator’s case, Ms Rolle said: “Swiss America’s online ‘day trading’ facilities do not enable clients to trade directly with the market, or against a market held position, as is the premise for trading facilities generally.

“Instead, Swiss America’s clients’ orders are placed via an online platform called ‘Das Trader’ and routed to a purported trading desk/back office of Swiss America in The Bahamas. Clients’ orders are not filled in the market, but instead are recorded as orders by Swiss America with no transaction having been entered in the market.

“As such, clients’ positions do not exist in the market as would be

NIB: OVER $500,000 TO TOURISM SELF-EMPLOYED

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE National Insurance Board (NIB) yesterday said it has paid-out more than $500,000 in the first tranche of help for selfemployed persons in the tourism sector hit by the COVID-19 pandemic.

The social security system, in a statement, disclosed: “The National Insurance Board (NIB) is pleased to advise that it has

made the first tranche of payments on Friday, April 3, to recipients of the government’s Unemployment Assistance Programme for self-employed persons in the tourism sector impacted by the COVID-19 shutdown in the amount of $555,893.66.

“Payments in the amount of $440,006.20 were made to 1,192 people via direct deposit. Additionally, cheques were being run for 302 people

PRICE REGULATORS BACK ‘NO GOUGING’ ON EGGS

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

CONSUMER protection regulators have confirmed there is no “price gouging” on eggs despite complaints that costs have doubled in just two weeks.

Danny Sumner, the Price Control Commission (PCC) chairman, told Tribune Business that an egg shortage in the US has resulted in cost increases that are being passed on to the main egg importer, Bahamas Food Services, and local retailers.

“We have already did our initial investigation when the outcry came out,” Mr Sumner said. “The inspectors were in full force and checking the other items in the food stores, and then the eggs came on afterwards.

The first problem we had was with the hand sanitiser, alcohol and the Lysol.

“Moving forward we knew that eggs were the main topic prior to the alcohol and Lysol shortage, and what we have discovered was that the market price for eggs in the US - and when I say the US, from New York all the way down to Florida - went up dramatically.

“What we also discovered is that there is still an egg shortage in the States; throughout the States. The farmers that supply eggs in the US have marked up on their prices, and that price has been handed down to wholesale

suppliers here in The Bahamas. The biggest supplier of eggs in The Bahamas is Sysco, which is Bahamas Food Services, and another company called Phoenix.”

Mr Sumner added: “Our inspectors, along with myself, we also went to Super Value as well. We went and obtained the invoices from the States showing the prices of the eggs, and we verified that their invoice indicates that there was a mark-up increase.

“That increase then was channelled down to the retailers, so what you saw in the food stores and the convenience stores were the mark-up prices that were handed from the wholesale suppliers. In some cases it might have been between 60 percent to 80 percent [increases], and maybe even 100 percent.

“The people who were in some of the stores that had older shipments; an older inventory of eggs, were still selling their eggs at over $2.

When that inventory was depleted, people went back to the stores on the next day and saw the price went from over $2 to now over $5,” Mr Sumner continued.

“That was because the old inventory with that regular price was finished, and the retailers had to go to the new price which reflected the increase. So, hence, there was no gouging going on.”

SEE PAGE 4

expected, but rely on Swiss America’s ability to cover gains and withdrawals in a manner that is akin to a ‘ponzi’ scheme.

This practice is wholly unacceptable to the Commission and must cease immediately.”

A ‘ponzi’, or pyramid, scheme is one of the oldest - and crudest - forms of financial fraud perpetrated on unsuspecting investors.

It lures them in by promising huge financial returns, but really involves paying off earlier investors with monies supplied by new investors attracted to the scheme. It ultimately collapses when not enough new investor money is coming in to make such payments.

Mr Gentile, though, last night vehemently denied the Securities Commission’s allegations and said its failure to understand his business model had cost 60 to 80 Bahamians their jobs.

“The firm was run by 60 full-time, 100 percent Bahamian staff that are out of work due to the [Commission],” he blasted.

“It has no basic understanding on electronic markets or principal trading. The firm has operated the same way from before its first Securities Commission audit in 2016, and before its forensic audit in 2017 and in every annual audit. It was disclosed how it safeguarded client funds as well as me personally telling” the regulator.

Mr Gentile then alleged that he was the victim of “a personal attack”, and called for changes at the Securities Commission.

He added: “Karma will fix this... I loved The Bahamas and I’d be happy to bring back all those (60-80) jobs.... Other jurisdictions want the employment and business.”

Ms Rolle’s letter, though, also disclosed the regulator’s unhappiness over Mr Gentile’s business establishing an “unregulated” Canadian entity for the purpose of receiving clients’ funds. “Swiss America’s clients are not aware that they are not sending funds directly to Swiss America, and the Commission has received no satisfactory explanation for this operational structure,” she wrote.

“Swiss America’s inability to obtain a bank account in its own name is an unsatisfactory explanation for the diverting of clients’ funds to an unregulated entity and demonstrates, at the very least, gross deficiencies in Swiss America’s operational capacity.”

After again calling on Mr Gentile’s Bahamian broker/ dealer, which was based at the Elizabeth on Bay plaza on Bay Street, to cease and desist, Ms Rolle outlined the regulator’s third complaint. “Swiss America has established purported ‘subsidiaries’ in the UK and elsewhere,” she added.

“Swiss America has entered into client referral and other agreements with these entities. In the case of the client referral agreements, Swiss America has either paid - or intends to pay - referral fees to these entities which are purported subsidiaries of Swiss America. The existence of these arrangements has not been disclosed to Swiss America’s clients.”

Ms Rolle added that the five-day suspension was intended to give Swiss America an opportunity to explain “the reasons for its non-compliance, and why the aforesaid issues should not result in Swiss America’s winding-up”.

This, though, was shortcircuited by Mr Gentile’s obtaining of the Supreme

Court injunction to overturn the suspension.

Tribune Business understands that while all hearings on the Securities Commission’s bid to overturn the injunction were completed in December, Justice Ruth Bowe-Darville has yet to rule on the matter.

And, while the Securities Commission has petitioned for the appointment of a liquidator, and for Sure Trader/Mint Broker to be wound-up under Supreme Court supervision, the matter in effect may have been rendered moot by Mr Gentile closing the broker/dealer and transferring all clients - as well as their assets - who wanted to go to a firm in another jurisdiction.

Mr Gentile, in his response to Ms Rolle’s later dated the same day, warned that the Securities Commission’s actions threatened both client funds and the employment of his Bahamian staff. He offered to switch to agency trading only; place client accounts in a segregated account at Deltec Bank & Trust; change the firm’s name back to Swiss America; and end the referral agreement with Mint Global Markets in the UK. Offering to “clear up some misunderstandings”, Mr Gentile wrote: “I would note that the Commission’s actions in shutting down Swiss America without notice or opportunity to cure the deficiencies cited in your letter put at risk customer funds, because such customers are precluded from managing their accounts during the suspension.

“Your order, as you may know,has severely impacted the livelihood of our 40 Bahamian employees. I must note that Swiss

America has been in good standing with the Commission for the past nine years, employing at one time any where from 40-70 Bahamians, without any serious issues or out-of-the-ordinary customer complaints.”

However, Mr Gentile and Swiss America Securities previously agreed to a $120,000 settlement with the Securities Commission in 2018 after failings were identified failings in their customer due diligence processes and record-keeping procedures. Ms Rolle’s letter said “deficiencies arising from on-site examinations have not been satisfactorily addressed”.

Mr Gentile, meanwhile, said he had become “dehydrated and very overwhelmed and tired, becoming frustrated” by the Securities Commission’s inability to understand the broker/dealer’s business model when their September 12 meeting went into its third hour.

“I was at a loss because I was told our meeting was about the audits, and that was what I was prepared to discuss, but your seemingly rapid questions were not about the audits,” he wrote.

“My frustration was because I was not able to express sufficiently that we went through two audits and one forensic audit regarding our trading and our entire operation at your direction. I was surprised at the line of questioning because you hired Ernst and Young to examine our trading history since our inception.”

Mr Gentile added the Canadian account was set up to reduce client costs, while the UK firm was intended to hold client assets because of the need to segregate these and management.

totalling $115,88.

NIB advised that where the recipient is in receipt of a pension, the weekly amount is deducted so that no more than $200 per week is paid to the individual for income support.”

K Peter Turnquest, deputy prime minister, said self-employed persons in the tourism sector left without work by the COVID-19 pandemic fallout will receive a $200 per week benefit for as long as The Bahamas’ national COVID-19 lockdown lasts.

That period is currently due to expire on April 8.

Marlon Johnson, the Ministry of Finance’s acting

financial secretary, said the first tranche of payments covered two weeks or $400 per person.

NIB added: “As at Thursday, April 2, NIB had received some 2,666 applications for the programme - 1,494 were approved, and 943 were denied due to insufficient documentation. The remainder is still being processed.

“The majority of applicants supplied banking details to facilitate direct deposit payments. Persons who have had their applications denied can reapply by attaching the necessary documents to the e-mail

notification received and their applications can be reconsidered.”

“On Tuesday, April 7, NIB will open its application process to other self-employed persons

outside of the tourism sector who were impacted by the mandated shut down. These persons will need to be registered with NIB and have a valid business licence.”

Cleaning Services

Clinics, Hotels, Business Establishments & Facility “Sanitizing” by the trained experts.

For a “FREE QUOTE” visit

www.cleanbahamas.com or call 636-1274 now!

PAGE 4, Monday, April 6, 2020

T

HE United Nations’ (UN) Economic Commission for Latin America and the Caribbean (ECLAC) has predicted the the economic impact from COVID-19 is expected to be more intense that the 2008 global financial crisis.

The Caribbean is expected to be impacted in numerous ways, including a decline in economic activity among its trading partners and lower demand for tourism. There will also be an impact from the interruption of value chains. This may have a greater effect on manufacturing countries, but there is a general impact for all imports as many countries that are being impacted feature prominently in the global supply chain. There will also be a drop in the price of exports, primarily as a result of a demand-side shock, and greater risk aversion on the part of investors.

TAKE A LONG POSITION There has been sufficient information to help policymakers refine the initial positions and projections taken. The world is in the midst of a real global financial crisis. Consideration must be given to potential bankruptcies or business failures, the reluctance of firms to use capital, and dramatic changes on the flow of money within the economy. The shutdowns across the world could be prolonged but, especially, in our main trading partner. This could be many, many weeks. China is rumbling back to life but, for many in the Caribbean, the US is the intermediary in our supply chains, the main source of demand for the region’s tourism product, and main export market. Therefore, while the initial point of supply in many supply chains may be ramping up, the most important point in that chain could be facing its own shut down. Despite efforts to the contrary the evidence on the ground suggests that the US has some way to go before normality can be entertained.

There is a risk to financial stability. The crisis holds great implications for global financial stability, which is under pressure.

We anticipate that central banks across the globe will take the necessary actions to deal with this. So, we must focus on our local

THE TRIBUNE

Paying the price in battling COVID-19

BY HUBERT EDWARDS

In the last of a three-part series, Hubert Edwards outlines how The Bahamas can rescue its economy once the virus threat has passed. economies. With firms suffering, and with household incomes under pressure from loss of employment, the banking sector will see a spike in non-performing loans. Small businesses in the Caribbean have traditionally had their financing tied to personal mortgages or sources. This represents a big risk for these entities, as the means of repayment are tied to their ability to trade. Lockdowns will affect cash flows and, if prolonged, will hurt these businesses. The impact on the banking system, therefore, must become an important factor in developing scenarios going forward.

With all this in mind, a long-term outlook must be taken. The decisionmakers must now decide what fiscal, monetary and macro-prudential treatment will best suit the suggested economic outcomes, and to what extent can they be afforded. Here is where fiscal reforms will become important. Will governments be willing to borrow in order to finance stimulus

packages? Do they actually have sufficient headroom to address, not just the previously determined potential out-turn, but scenarios that could result in a marked reduction in foreign direct investment (FDI); business closures; bad loan spikes; an absence of currentlyfunded projects to drive employment and further investments; a precipitous fall in foreign exchange inflows; and the implications for net internal reserves and balance of payments.

Debt-to-GDP ratios loom large in the successful strategies being pursued

by Jamaica. They also loom large as a measure of success for The Bahamas’ recentlydetailed fiscal strategy, and this is generally the same across the region.

We are reminded of the state that Barbados found itself in not too long ago.

To what extent are policymakers willing to buck the trend and do what may be required to inject growth through deficit spending? This calls for playing the long game. There are

certainly near-term issues to be addressed, and which must be given careful attention if success is to be secured in the long-term.

However, long-term success and sustainability must not be sacrificed for shortterm outcomes. If historical experience holds true for the event then this could be at least a three to fiveyear cycle. Planning and responses should be tailored accordingly.

THE POLICY TREATMENTS The policy responses, as indicated before, can range from fiscal - where the government uses its tax and spending policies to support firms and persons affected by the event - to monetary easing that is usually designed to support demand confidence, and reduce the borrowing cost for households and firms. Central banks can take actions to provide liquidity to markets and ease stresses on credit and currency mechanisms. The reality is that as we look across the region the ability to implement these options varies significantly. In a number of instances, a country’s economic structure limits the range of options available and the potency as it relates to monetary policy.

With that in mind, we outline our views on possible actions that can be taken. We limit our focus to The Bahamas, being the jurisdiction we are most familiar with, on the assumption that they will hold instructive value for others.

• Reduce the Central Bank reference (discount) rate from its present four percent. We understand many will not agree. There are significant complexities resting on this rate.

The earnings, reserves and balance sheets of insurance companies; the level of earnings of banks; asset liability challenges; and potential demand for currency with cheaper funding etc. Without discounting the complexities, we caution not to make the mistake of 2008, when non-performing loans (NPLs) ballooned and hurt the housing market and homeowners. In many ways, the Bahamian banking sector has not fully recovered from this event.

While the issue may be currently concentrated in certain institutions, further pressure on mortgages could create an interesting

reality for both the government and the sector. While currently highly capitalised, individual banks could feel pressure on their capital adequacy ratios.

• Public sector spending will need to be ramped up.

Over the last three fiscal cycles, there has been a depression in capital spending. Consequently, there are not many substantial projects that can form the basis for a stimulus package. Maybe it is time to look at how effectively managed debt financing may deliver infrastructure expansion, which will facilitate future growth and development. This must be done within the context of a long-term plan, and the necessary checks and balances, to prevent the loss of public resources.

• Consideration should be given to reducing VAT as a means of supporting consumers going forward.

We understand the implications for government revenue, but argue that should unemployment deepen to the levels projected, government would still need to find resources for welfare support. A reduction in taxes increases the buying power of the individual, and potentially reduces the level of government spending and the natural ineffectiveness that tends to be present when it comes to public sector machinery reaching those in need.

• The announced loan programme of $20m for MSMEs will likely need to be expanded with a significant pool targeted at supporting these entities over the next 12 to 18 months. Consideration would therefore need to be given to the cost of accessing this funding.

• As part of a long-term outlook, the policymakers should consider how to use the fiscal apparatus to encourage the development of sectors that have potential but are not growing. There is an urgent need for greater diversification, and exploiting potential horizontal and vertical integrations and linkages across sectors. This is where this crisis represents an upside potential. Having exposed vulnerabilities across the Caribbean, it is critical that the status quo is broken and other economic contributors for growing GDP are located.

• Plans should be considered for supporting tourism on the back end. It is our view that this sector could display a delayed recovery due to leftover concerns from the virus.

Other than that, the impact on disposable income may increase demand for budget locations amid tentativeness in the market.

Smaller properties and concerns connected to tourism may therefore need a longer support horizon.

• Given fiscal limitations, public-private partnerships (PPPs) should be actively considered as part of any stimulus approach.

The crisis could present the impetus for driving this much-discussed means of

supporting government investment in infrastructure and the provision of public goods.

• The government should deploy its concessions regime to support the retooling of companies, and encourage the expansion of existing ones into the digital space. Allocations should be made for the development of generic digital sand boxes for entities willing to commit to reasonable conditions.

• There must be a return to the National Development Plan with an emphasis on building a more resilient economy. The opportunity should be taken, regardless of how COVID-19 unfolds, to take a serious look at health systems and their capacities - social welfare systems, food security, and those elements that support ease of business across all sectors.

We believe that a fundamental recasting of the projections, with appropriate adjustments to the above-proposed actions, will provide an effective tool kit for policymakers. The issue of timing remains for their consideration, informed by the continued unfolding of the crisis. In all instanced we anticipate that all actions taken will be regulated by the individual country’s foreign currency reserves.

CONCLUSION In our last piece we outlined the vulnerabilities that exist within the Caribbean, giving thought to the measures that governments will employ. Here we sought to look at the efficacy of those responses, and consider whether they could be suboptimal given the early projections that were made. We argued, using Jamaica and The Bahamas as examples, for a rethink of the outcomes and the timeline over which these will unfold, and suggested actions that policymakers can take specific to The Bahamas.

The issues at hand are very complex for the region.

As we write we are minded that we are in the midst of an unfolding event with a high level of uncertainty.

Our hope is that none of the dire circumstances alluded to will materialise. This is not an exploration of doom, but an exercise geared at preparedness. If the worst materialises, the Caribbean must be prepared to the best of its ability. The fight, in the first instance, is for the lives and well-being of the citizens and playing an important part of protecting all of humanity from the ravages of COVOD -19. That must never be lost in all that is contemplated and implemented. This is a health event with significant economic and financial implications. Success in beating the health aspect is critical to saving the economy. Both are intrinsically intertwined, but demand separate treatments. Any country that loses the battle will pay dearly.

In our next piece, we will look at other developments and perspectives relating to the COVID -19 crisis.

PRICE REGULATORS BACK ‘NO GOUGING’ ON EGGS FROM PAGE THREE Acknowledging it is “unfortunate” that Bahamian consumers have to face such “extremely high” prices on eggs, Mr Sumner added: “There is nothing the retailers or the wholesalers could do.

It’s just one of the situations where the demand for eggs in the US probably helped escalate the mark-up increase of the eggs.

“We also discovered that the prices you see in those food stores right now on eggs, the retailers are not making not one cent of profit from those eggs. We had a meeting, and Mr Roberts from Super Value said he is not making any profit on eggs at all.”

Mr Sumner continued, “In addition to that, eggs carry a duty which is 30 percent.

Then there is 12 percent VAT, so you are looking at 42 percent on eggs when they are landed. The controlled markup on eggs is ten percent, so you are looking at 52 percent right off the top for eggs before they get to the consumers in the market.

“The egg prices that you see right now are because of the demand for it in the US, but I can assure you that the prices that the retailers are looking at in the stores is in standard with the PCC. There is no gouging

going on, I can assure the public of that. There is no gouging going on. It’s just that it is something we have to endure until the coronavirus situation mellows and the eggs prices will drop, but for the time being it is going to be like that until the situation warrants better.”

Mr Sumner’s assertions back comments by Philip Beneby, head of the Retail Grocers Association, who on Friday told Tribune Business “there’s no price gouging on eggs” despite increases of “more than 100 percent” over the past two weeks.

He explained that demand in the US and other countries amid the pandemic was “driving up the cost” of this food staple, and warned that hardpressed Bahamian consumers - many of whom have lost jobs and/or income due to COVID19 - that “there’s no relief in sight” on egg prices which may well further increase before they decline again.

Mr Sumner, meanwhile, backed calls by Herbert Styles, former president of the Consumer Protection Association, for the list of pricecontrolled breadbasket items to be expanded. He said: “I totally agree with him. I have a number of things right now that I would propose to the government, but I am waiting for the right time.”

THE TRIBUNE

Monday, April 6, 2020, PAGE 5

The end of the line for cruise ships?

ACTIVTRADES WEEKLY

By RICARDO EVANGELISTA www.activtrades.bs THE fallout from the coronavirus pandemic over the global economy is threatening to trigger an unprecedented depression; the latest forecast from Goldman Sachs for the United States predicts a contraction of 34 percent in GDP on the second quarter of 2020, accompanied by an unemployment rate of 15 percent.

These numbers are astounding and unfortunately parallels can be found in numerous other countries, as the measures to contain the spread and impact of the virus are causing a sudden deceleration in economic activity, with all but essential services being restricted.

Many industries are suffering, but few as dramatically as those in the travelling and tourism sectors. A few weeks ago I mentioned here the damage being inflicted on aviation. Flying became a heavily controlled activity, almost the exclusive of cargo transport and military operations; entire fleets are grounded and staff laid off.

On Friday British Airways suspended 36,000 staff as Heathrow airport, one of the world’s busiest, closed one of its runways.

But amid the torrent of bad news there is a light at the end of the tunnel; last week the American senate authorised a $50bn bailout, intended at keeping airlines

NASSAU Cruise Port. alive. It probably won’t solve the most severe crisis ever faced by the industry but will surely help mitigate some of the most immediate damage.

But if you feel bad about what’s happening to aviation, spare a thought for the several cruise ship operators who are staring down the abyss of financial ruin.

Its been all over the news: the plight of passengers and crews, stranded aboard ships riddled with coronavirus, as country after country choses to look the other way and close their ports.

On Friday, the Zaandam and its sister vessel, the Rotterdam, finally docked in Florida after 12 days stranded at sea. On board were dozens of passengers suffering from COVID-19 as well as, sadly, four bodies of travellers who succumbed to the illness. This is of course very bad news for an industry that until recently was on the way up with record number of new ships sailing from busy yards, as operators invested

heavily in a business that was flourishing.

Both the Zaandam and the Rotterdam are owned

by Carnival Corporation, a British-American operator, considered the world’s largest travel leisure company and owning more than 100 vessels operating under ten brands.

The nightmare scenarios, lived onboard these ships and widely shared by the media, inflicted a punishing blow to the future prospects of the business, with new bookings drying out and uncountable trips being cancelled.

Even among the recent abundance of economic horror stories, the case of Carnival stands out; the firm’s share value was $3,632 at the beginning of January 2020, now it sits on $625, a drop of 82.5 percent. Despite the company’s healthy balance sheet at the onset of the crisis, investors are walking away.

Unless the disease is quickly brought under control, this may be the end of the line for several cruise operators.

PAGE 6, Monday, April 6, 2020

THE TRIBUNE

‘The worst decision I’ve ever had to take’ FROM PAGE ONE

go the temporary lay-off route to ensure its employees are not left too far down the queue when it comes to applying for National Insurance Board (NIB) benefits.

“It’s the worst decision I’ve had to make in my life,” Mr Burrows told Tribune Business of the temporary lay-offs. “With our economy how it’s been the last couple

of weeks, I doubt there’s any company in The Bahamas that has the available cash to keep paying their employees.

“The reality is it has only been in the last seven to eight months that business has started to pick-up. We’ve been catching hell for several years. It’s a very tough situation. We’re hoping at the end of the day to bring our employees back and make it right by them. We have a

fantastic team at CBS, just a little less than 70.”

CBS Bahamas’ efforts to bring in some revenue, which might have allowed it to keep paying staff, have been thwarted at every turn.

Itself, together with other leading hardware and home improvements retailers, had initially successfully lobbied to open to licensed contractors only, but that was shut down two days later by the

government issuing a new Emergency Powers Order.

And, just last week, Tribune Business detailed how it had been able to obtain an answer either way from the government on being able to operate a home delivery service - where there would be no staff or customer contact - using a 35,000-product e-commerce platform it has invested thousands of dollars in developing.

Mr Burrows said that given this backdrop, and the likely pile-up of NIB applications, “we didn’t want to be caught two weeks’ down the road and our employees be waiting to get money out

Vacancy Announcement

of NIB for stuff that they’ve been paying in for years. We just took the position at this time that it’s all the staff. It’s difficult to cherry pick. We hope to re-hire our employees, the majority of them, when we open back up”.

“I honestly don’t think we’ll be out of this before the end of the month,” he told Tribune Business of the nationwide lockdown. “If we’re able to survive we’ll at least have jobs for the staff to come back to, but if we don’t do what we have to do financially, there’ll be no company to come back to and work for. That’s the situation we’re all in.

“I just hope at the end of the day our country comes out of this and is able to survive. It’s going to be very tough. It’s not going to be business as usual. It will be a long climb to get out of this one. Right now, we’re not doing anything. Everything is closed down.”

Mr Burrows added that CBS Bahamas’ contracts business, where it provides services to contractors and construction sites, was also closed due to the COVID19 pandemic. “We’re hoping that when the country opens back up that bounces back quicker as we have contracts in play,” he said.

Bahamas needs ‘asue mentality’ for its recovery FROM PAGE ONE

The American Embassy in Nassau is accepting applications for the following position:

package, he argued that this nation required a “community jump-start” where it went “back to the days of knowing our neighbour and having some faith and trust in one another”.

And Mr Bowe said one “silver lining” of the national lockdown imposed to fight COVID-19 is that it gives the government and private sector time to plot an economic recovery strategy and identify where scarce funding will have its greatest impact in reviving commerce, jobs and incomes.

“In a lockdown there is nowhere for capital to go,” the ex-Chamber of Commerce chairman explained.

“We’re going to benefit from the silver lining of the lockdown because it gives that opportunity to understand where the capital must flow.

“If we know the areas where we are going to relaunch, hopefully that’s where people with savings and resources are able to direct cash flow, get employment moving, get salaries moving... People that want to take advantage

Accountability Service Center (ASC) Clerk Salary $28,146 – $42,222 Duties: This is one of seven positions assigned to the Accountability Service Center (ASC), our “one-stop shop” for managing all accountable aspects of Property Management, Real Estate and Fleet Management. The ASC safeguards against waste, fraud and abuse of U.S. government property through impeccable record keeping, analysis of processes and information; performs or arranges management audits; establishes and recommends improvements in management controls. Incumbent responds to requests, executes tasks, and participates in various projects assigned by the supervisor. Incumbent reports to and is reviewed by the ASC supervisor.

Interested candidates are required to possess the following skills and qualifications: • Education: Completion of High School Diploma is required.

• Experience: A minimum of two years of administrative management experience is required.

• Language: English level III (good working knowledge) is required.

The complete Vacancy Announcement and Application forms are available online on the Electronic Recruitment Application (ERA) located on the following website: https://bs.usembassy.gov/embassy/jobs Applications will not be accepted at the Security Gate of the Embassy, by mail, E-mail or other means of delivery.

Deadline for applications is April 10, 2020.

FROM PAGE ONE

Due to the high volume of applications, unsuccessful candidates will not be contacted.

Drawing on 2017 data provided by the Department of Statistics, Mr Brown said

MARKET REPORT www.bisxbahamas.com

(242) 323-2330

FRIDAY, 3 APRIL 2020

(242) 323-2320

ALL SHARE INDEX: CLOSE: 2,152.53 | CHG: -0.20 | %CHG: -0.01 | YTD: -79.07 | YTD%: -3.54 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.70 2.60 2.00 5.47 12.77 6.17 4.50 10.60 3.64 5.10 10.88 8.15 16.99 9.40 4.24 15.21

52WK LOW 3.35 20.91 5.50 5.38 2.09 0.67 2.00 10.21 5.60 3.75 6.01 2.53 1.80 8.00 6.63 13.60 6.98 3.14 13.85

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

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS EMAB FAM FBB FIN FCL JSJ

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.55 17.43 6.00 6.68 2.10 1.62 3.00 11.26 6.00 4.07 6.01 2.89 4.90 9.11 8.15 14.15 8.97 4.23 15.21

CLOSE 3.55 17.43 6.00 6.68 2.10 1.62 3.00 11.26 6.00 4.07 6.01 2.81 4.90 8.99 8.15 14.15 8.97 4.23 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.08 0.00 -0.12 0.00 0.00 0.00 0.00 -0.01

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

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

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

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

VOLUME 15 43

25

4

5,900

VOLUME

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

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

P/E 14.9 18.7 N/M 18.1 N/M N/M -6.8 15.6 13.4 22.1 42.9 27.5 10.5 13.9 11.2 17.3 9.6 20.8 24.1

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.0 0.0 0.0 0.0 0.0 0.0 0.0

YIELD 4.79% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.39% 3.67% 2.95% 0.00% 15.44% 1.22% 3.65% 2.94% 3.82% 2.23% 2.84% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

6.95% 4.00% 4.25% 4.25% 4.50% 4.50% 6.25% 6.25% 4.00% 4.25% 4.50% 6.25% 3.50% 3.88% 4.25%

20-Nov-2029 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 0.37% 3.81% 0.24% 4.38% 0.23% 2.75% 5.76% 5.76% 12.81% 12.81% 0.58% 4.04% -1.09% 5.26% 0.22% 4.45% 2.29% 9.61% -0.32% 10.20% -1.58% 15.37% 0.88% 5.22% -4.91% 10.77% 1.89% 6.75% -1.95% 0.38% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Dec-2019 31-Dec-2019 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Jan-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020

MUTUAL FUNDS 52WK HI 2.30 4.38 2.09 195.13 166.73 1.67 1.83 1.76 1.23 8.34 10.26 7.00 12.15 12.58 10.81 10.00 8.98 11.79

52WK LOW 1.67 3.30 1.68 164.74 116.70 1.67 1.83 1.76 1.23 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

NAV 2.30 4.38 2.09 195.13 166.73 1.67 1.83 1.76 1.23 8.31 10.07 7.00 11.42 12.58 10.52 N/A 8.98 11.40

MARKET TERMS

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

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

30-Sep-2019 30-Sep-2019 30-Sep-2019

of opportunities and have excess liquidity, if they invest in these opportunities that will allow economic activity to pick back up.

“It’s taking advantage of the pause. It’s going to be disruptive to most persons, including those that save for a rainy day. We have to pool our resources together like never before, and direct capital into those organisations that need it even though it may require some ownership changes,” Mr Bowe continued.

“We need that asue mentality when we come out of this so that banks and others can deploy capital in the most efficient manner.

We’re going to lose selfishness to jump start the economy. For the benefits will come back to me even if I’m not first out of the gate.”

Mr Bowe explained that even if an investor’s existing business interests were not involved in the revival plan’s first wave, they would ultimately benefit from a rising tide lifting all boats as jobs and economic activity returned, thereby stimulating aggregate demand and the creation of new businesses.

“While we may see the

US printing money, The Bahamas does not have that luxury,” Mr Bowe added. “It’s going to be more of a community jumpstart by those that have, and those that have not, working together.

“Very few countries can do the things the US has done, and as we don’t have the demand for our currency, we’re going to have to be more communityminded, more selfless and more collaborative in our approach. We have to go back to the days of knowing our neighbours and having some faith and trust in one another.”

Mr Bowe added that commercial banks will have to carefully monitor capital and liquidity levels given that many institutions, businesses and even individuals will seek to draw down on their existing deposits to provide cash flow during the nationwide COVID-19 lockdown.

“The banking industry has three parties: Depositors, shareholders and borrowers,” he told Tribune Business. “We’re going to have to devise a mechanism to ensure all protected because we don’t want one party to lose out.”

$700m needed to support up to 100,000 jobless

“It’s probably going to be a little more challenging than the first fight because there are a lot of moving parts....

I think we can do it because that $700m comes from the banking system. The banks are not going to be interested to lend that money aggressively because they’re worried about problems with servicing that debt.

“There’s even more headroom if the government wants to make it $1bn. The key is that the money is being borrowed domestically. I don’t like borrowing $2bn from the foreign markets because that creates a burden for the country as we have to pay the principal and interest back, and borrow that from ourselves,” he continued.

“We don’t have the capacity other than to use our own reserves, and we can’t use the reserves to pay that debt as we are getting no cash flow” coming in due to the shutdown of tourism and other export, foreign currency-earning sources.

Mr Brown added that The Bahamas should not attempt to negotiate a restructuring of its foreign-held debt by itself, arguing that there was strength in numbers if it chose to do so in concert with other Caribbean countries.

And, while it might prove easier to negotiate a restructuring of its domestic debt with the likes of the National Insurance Board (NIB), commercial banks, insurance companies, pension funds and other institutional investors, the Benchmark chief warned that this presented hidden dangers in terms of disrupting investor balance sheets, capital adequacy and solvency margin requirements.

his research suggested that up to $1.152bn in household income could be lost to the COVD-19 pandemic with the hardest blows suffered by the middle, lower middle and lower income classes.

And, in economic terms, he suggested that a “frozen” economy resulting from the virus crisis could cost almost $9bn in lost economic activity based on 2018 national accounts data using current (nominal prices).

Calling for the government to launch a multi-phase rescue package in conjunction with the private sector, the Benchmark chief said its first move should be to exploit the $2.097bn in commercial bank surplus liquidity that existed at end-February 2020 to raise $700m from that sector via a domestic bond issue priced at three percent.

And he also called for The Bahamas to form a “bloc” with other Caribbean nations and negotiate collectively with external lenders for a deferral, moratorium or some other restructuring of their foreignheld debt to free-up resources for economic recovery and provide fiscal breathing space following the pandemic.

“We need to start ramping up that economic fight to the level we are with the health,” Mr Brown told Tribune Business of the COVID-19 aftermath. “I’m just trying to get the conversation going about what the outlook is and how serious the second part of the fight is going to be.

CAVES VILLAGE Premium Office Space for Lease 1,056 sq.ft. 4 offices, conference room, reception, kitchenette and bathroom, IT closet. $3,696.00 pm. Inc. CAM + VAT Contact Mr. Matt Pyfrom on 327 1575 or 477-0992 Email: matt@cavesvillage.com

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

THE TRIBUNE

Monday, April 6, 2020, PAGE 7

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

T

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

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

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

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

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

MEMBERSHIP PACKAGES Individuals, Families & Corporate Sponsors Children Helping Children - $5 (Individual children from ages 6 - 18) Individuals Helping Children - $50 (Individual adults 18 years and over) Families Helping Children - $100

CIRCLE of FRIENDS Silver: $1,500 - $2,499 Gold: $2,500 - $4,999 Platinum: $5,000 plus

OPPORTUNITIES • • • •

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

BENEFITS

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

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

Super Value chief slams ‘chaos’ on lockdown move FROM PAGE ONE

schedule indicated it planned to repeat this weekend’s total lockdown over Easter and subsequent weekends until it was satisfied COVID19 is vanquished from The Bahamas.

He disclosed that Super Value will today begin installing plexiglass screens at all its stores, and providing cashiers with plastic masks, to protect them from COVID-19 by creating a barrier separating them from consumers.

“I’d like to say something about the short notice,” the Super Value chief said of Dr Hubert Minnis’s late Friday afternoon announcement.

“We got three hours to close down. I knew for two days that Barbados was going to close down at 5pm, and I thought they had 24, 36 hours’ notice. Three hours was very short for us.

“The word was out because they [customers] started to rush us at 4pm.

Between 5pm to 6pm the police came around, and at some stores they threatened to shoot them [customers] if they did not get off the line and go home.

“We should collect the guns off these junior officers because they cannot go around threatening customers. Some people had not

been paid, some people needed milk for their baby as they had no water at home.

It was chaos at some stores,” Mr Roberts continued.

“ZNS reported it was chaos at Top-of-the-Hill Mackey Street, but that was the only store that went well.

The inspector from Wulff Road was in there shopping, and he took charge from the junior officers, and took it over and ran it. It really went perfectly. He has to be commended. I wish we could have had an inspector at every store so that it closed down properly.

“That three hours didn’t give us a chance to serve the public, and then we had to secure our perishables.

Something like milk keeps better in the cooler at 33 degrees. In the case you get fluctuations from 33 to 38 degrees, and milk with a three-week shelf life goes to two weeks. We had to rush the soft perishables back into the coolers and freezers.”

Mr Roberts revealed that Super Value’s staff faced a similar race against time with its fruit and vegetable produce, reiterating that “not enough notice” was provided to all food retailers. And he questioned how persons not due to shop today, as per the government’s schedule, will fare without food and drink

supplies - especially those who were caught out by Friday’s lockdown.

“That’s a big stretch to go without water and milk for the baby,” the Super Value chief added of Bahamians and residents not scheduled to shop until Tuesday. While those whose surname first letters range from ‘A’ to ‘O’ will be allowed into stores today, those with first letters from ‘P’ to ‘Z’ - including the elderly and disabled who fall into this category - will have to wait until tomorrow.

“We should point that out to the government,” Mr Roberts continued. “Unless they gave urgent medical reasons they shouldn’t start this on Monday [today]. Starting it on Wednesday would be my suggestion. Unless they have medical reasons they should go ahead and tweak it.

“I think the senior citizens and disabled should be able to shop at any time. To only be able to shop between 6am and 12pm on Tuesday, and whenever the first letter of their surname comes up, that’s too rigid. That’s only my opinion.”

Mr Roberts said he had also written to the government about the health hazards posed by customers bringing unwashed reusable shopping bags into stores, pointing out that these potentially carried e-coli and salmonella bacteria from chicken and meat blood that may have leaked out.

“They’re not washing the bags, and when I mentioned this to Dr Duane Sands he said: ‘Yikes’. I said to him to see what he can do. They’re going to have struggles suggesting to the public to wash those,” he added.

PAGE 10, Monday, April 6, 2020

THE TRIBUNE

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 82° F/28° C Low: 64° F/18° C

TAMPA

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

Rather cloudy with a shower or two

Mostly cloudy with a few showers

Clouds and sun with a shower

Comfortable with sunshine

Mostly sunny and humid

Bright sunshine

High: 82°

Low: 71°

High: 82° Low: 72°

High: 84° Low: 72°

High: 85° Low: 72°

High: 85° Low: 72°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

84° F

69° F

85°-76° F

91°-77° F

96°-78° F

95°-78° F

High: 85° F/29° C Low: 66° F/19° C

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: 74° F/23° C Low: 72° F/22° C

8-16 knots

S

High: 79° F/26° C Low: 71° F/22° C

8-16 knots

FT. LAUDERDALE

FREEPORT

High: 80° F/27° C Low: 72° F/22° C

N E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 78° F/26° C Low: 70° F/21° C

MIAMI

High: 83° F/28° C Low: 76° F/24° C

6-12 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 65° F/18° C Normal high ....................................... 80° F/27° C Normal low ........................................ 68° F/20° C Last year’s high ................................. 85° F/29° C Last year’s low ................................... 72° F/22° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ................................................. 1.73” Normal year to date ..................................... 4.81”

ELEUTHERA

NASSAU

High: 82° F/27° C Low: 71° F/21° C

Forecasts and graphics provided by AccuWeather, Inc. ©2020

High: 77° F/25° C Low: 73° F/23° C

N

KEY WEST

High: 84° F/29° C Low: 76° F/24° C

High: 78° F/26° C Low: 73° F/23° C

N

S

E

W

6-12 knots

S

6-12 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

High

Ht.(ft.)

Low

Ht.(ft.)

Today

6:59 a.m.

7:27 p.m.

3.2 3.2

12:48 a.m. -0.5 1:19 p.m. -0.6

Tuesday

7:51 a.m.

8:18 p.m.

3.2 3.4

1:44 a.m. -0.7 2:08 p.m. -0.8

Wednesday 8:41 a.m.

9:09 p.m.

3.2 3.5

2:38 a.m. -0.9 2:55 p.m. -1.0

Thursday

9:31 a.m.

9:59 p.m.

3.1 3.5

3:31 a.m. -0.9 3:43 p.m. -1.0

Friday

10:21 a.m.

10:51 p.m.

2.9 3.4

4:24 a.m. -0.8 4:31 p.m. -0.8

Saturday

11:13 a.m.

11:44 p.m.

2.7 3.2

5:18 a.m. -0.6 5:22 p.m. -0.6

Sunday

12:07 p.m.

-----

2.5 -----

6:14 a.m. -0.3 6:15 p.m. -0.3

sun anD moon Sunrise Sunset

6:56 a.m.

7:29 p.m.

Moonrise Moonset

6:11 p.m.

6:05 a.m.

Full

Last

New

First

Apr. 7

Apr. 14

Apr. 22

Apr. 30

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 78° F/26° C Low: 73° F/23° C

High: 79° F/26° C Low: 75° F/24° C

N

High: 81° F/27° C Low: 74° F/23° C

E

W S

LONG ISLAND

tracking map

High: 79° F/26° C Low: 74° F/23° C

H

tiDes For nassau

CAT ISLAND

E

W

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

6-12 knots

MAYAGUANA High: 80° F/27° C Low: 74° F/23° C

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

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 79° F/26° C Low: 75° F/24° C

High: 79° F/26° C Low: 73° F/23° C

GREAT INAGUA High: 82° F/28° C Low: 75° F/24° C

N

E

W

E

W

N

S

S

7-14 knots

7-14 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 E at 8-16 Knots ESE at 8-16 Knots S at 6-12 Knots SSE at 8-16 Knots ESE at 5-10 Knots ESE at 7-14 Knots E at 6-12 Knots E at 8-16 Knots ESE at 6-12 Knots ESE at 7-14 Knots E at 10-20 Knots ESE at 8-16 Knots SE at 6-12 Knots ESE at 7-14 Knots E at 7-14 Knots E at 8-16 Knots ESE at 6-12 Knots ESE at 8-16 Knots E at 6-12 Knots ENE at 7-14 Knots ESE at 8-16 Knots ESE at 8-16 Knots SE at 7-14 Knots ESE at 8-16 Knots E at 6-12 Knots ESE at 8-16 Knots

WAVES 2-4 Feet 2-4 Feet 1-3 Feet 1-2 Feet 2-4 Feet 2-4 Feet 2-4 Feet 2-4 Feet 2-4 Feet 2-4 Feet 2-4 Feet 2-4 Feet 1-3 Feet 1-3 Feet 2-4 Feet 2-4 Feet 1-3 Feet 1-3 Feet 3-5 Feet 2-4 Feet 1-3 Feet 1-3 Feet 1-3 Feet 1-3 Feet 3-6 Feet 3-5 Feet

To advertise ALL your LEGAL NOTICES, call The Tribune’s Sales Department

502-2394

VISIBILITY 7 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 6 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. 77° F 77° F 80° F 81° F 78° F 77° F 81° F 81° F 78° F 79° F 78° F 76° F 79° F 79° F 79° F 79° F 79° F 78° F 78° F 78° F 79° F 78° F 79° F 79° F 78° F 78° F