05272021 BUSINESS

business@tribunemedia.net

THURSDAY, MAY 27, 2021

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‘Deadly’ debt costs breach $1/2bn mark

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE government’s annual debt servicing (interest) costs were yesterday branded “deadly” after they breached the $500m mark to now exceed combined health and education spending.

Robert Myers, the Organisation for Responsible Governance’s (ORG) principal, told Tribune Business “tell me in God’s name how anyone thinks that’s sustainable” after the 2021-2022 budget revealed that the government’s $512.469m interest payments alone for the upcoming fiscal year equal 22.8 percent of its projected $2.245bn revenue intake.

That means that more than $1 out of every $5 earned in taxes is going to service The Bahamas’ stillgrowing $9.6bn national debt, further exposing the costs inflicted by the COVID-19/Hurricane Dorian debt and deficit

• Govt interest payments exceed health and education • More than $1 out of every $5 in tax to creditors • Fears govt ‘sugar coating’ as knows ‘can’t kick the can’

DR HUBERT MINNIS

ROBERT MYERS

GOWON BOWE

blow-out and just how much money is now being diverted away from critical public services to pay The Bahamas’ creditors.

Now by far the biggest line item in the government’s annual budget, interest payments in 2021-2022 will exceed the combined expenditure allocations to the Department of Education ($202.554m) and Ministry of Health ($298m) which together come to just over $500m.

These were, some years

ago, the two greatest spending sources in the budget.

While adding in the spending allocations for the Ministry of Education and Department of Public Health would comfortably exceed the government’s upcoming interest payments, the addition of $951.8m in additional debt

by June 30, 2022, could see debt servicing soon consume $1 out of every $4 in tax revenues.

Dr Hubert Minnis, in unveiling the 2021-2022

budget, conceded that “debt servicing charges have increased over $100m” yearover-year without disclosing just exactly how high they have now reached.

However, the accompanying budget booklet disclosed that the half-abillion dollar mark has now been breached, and debt service (interest payments) are forecast to remain elevated for the foreseeable future at at $481.513m and

Tourism chief hails ‘long overdue’ $31m Airbnb tax increase

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Hotel and Tourism Association’s (BHTA) president last night hailed the government’s bid to extract an extract $31m from the vacation rental market as “levelling the playing field”.

Robert Sands told Tribune Business that the Minnis administration’s VAT crackdown was “long overdue” as it will ensure the 12 percent levy is charged on the actual rent paid by visitors as well as the commissions paid to online marketplaces such as Airbnb.

The BHTA chief spoke out after the prime minister

ROBERT SANDS revealed that the government is changing the VAT Act to make absolutely clear to Airbnb and its competitors that taxes must be levied “on the full value of the rental”.

Describing the move as part of efforts to achieve “greater equity in government taxation”, Dr Hubert

SEE PAGE 8

‘Ready, willing and able’ on Abaco port

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ABACO’S Chamber of Commerce president yesterday said the private sector was “ready, willing and able” to secure the island’s main port and ensure direct shipping from the US continues.

Ken Hutton told Tribune Business he was increasingly concerned that waivers provided by the US Coast Guard and International Maritime Organisation

(IMO) will not be extended indefinitely as he praised the government for extending Abaco’s Dorian-related tax breaks for another six months to year-end 2021.

Should the exemption from the International Shipping and Port Security (ISPS) standard be discontinued, he explained that ships bringing building materials and other vital reconstruction supplies to Abaco would be unable to directly return to the US.

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‘Makes no sense’: Realtors challenge tax crackdown plan

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PROMINENT realtors yesterday warned that the government’s plan to target delinquent commercial property owners by seizing their tenants’ rent “makes no absolutely no sense”.

David Morley, whose firm is one of The Bahamas’ largest commercial property managers, told Tribune Business the Minnis administration was likely to create “a whole bunch of mortgage defaults” and other problems if it follows through with plans unveiled yesterday to tackle real property tax deadbeats.

Disclosing the 20212022 annual budget in the House of Assembly, Dr Hubert Minnis said tenants in commercial office and retail properties owning substantial real property tax arrears will have to pay their monthly rents to the Department of Inland Revenue (DIR) - rather than their delinquent landlord until the debt is settled.

“We are introducing

DAVID MORLEY legislative amendments to improve real property tax collections for commercial properties,” the Prime Minister announced. “We have had situations where owners of significant commercial properties collect substantial rent from businesses but are delinquent in the payment of taxes.

“The legislative enhancements will permit the government to have those rents paid to the Department of Inland Revenue (DIR) for delinquent commercial property tax owners.”

However, to enforce this scheme the government is implementing reforms to the business licence Act rather than the Real Property Tax Act.

SEE PAGE 9

PAGE 2, Thursday, May 27, 2021

THE TRIBUNE

EX-MINISTER HAILS ‘WONDERFUL’ $100M UPGRADE FOR HOSPITALS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

A FORMER Cabinet minister yesterday hailed the more than-$100m investment in The Bahamas’ two major public hospitals as “a wonderful thing” that will upgrade 70-80 percent of core healthcare services.

Dr Duane Sands, pictured, ex-minister of health, told Tribune Business that the extensive capital upgrades unveiled by the Prime Minister in yesterday’s 2021-2022 Budget should make “a significant improvement” in the quality of services delivered

by Princess Margaret Hospital (PMH) and Freeport’s redeveloped Rand Memorial Hospital.

Disclosing that the redevelopments have been in the planning stages for some time, he said: “We have been working on this now for a number of years, and it is good to see it coming to fruition. The components will be a maternal/childcare ward, with a new imaging department including x-rays and radiology.

“I haven’t seen the plans since I demitted office, but an original component for

the tower included a brand new emergency room. This is in keeping with the Beck Group’s plan for a phased redevelopment of Princess Margaret Hospital on-site, where you tear down and rebuild, tear down and rebuild.

“The fact this is coming to fruition is a wonderful thing, and we’ve been doing the due diligence to get to this point for some time. We continue to move forward, if incrementally.”

Dr Sands added that there was “no doubt” that PMH’s critical care block, despite its known challenges, had “catapulted care” at the hospital forward in terms of quality delivery and outcomes.

“Now this next phase will have probably 70-80 percent of core services upgraded,” he said, “and some additional things need to be done in terms of ward

space and meeting space.

I think it’s going to be a significant improvement.”

Dr Hubert Minnis said the Government will pursue its hospital redevelopment initiative at “an accelerated pace” over the next 18-24 months after it obtained a low-interest rate loan to fund the project using World Bank guarantees.

Explaining that both hospitals will see their physical infrastructure enhanced through the construction of four-storey towers, the prime minister added: “The funding for the PHM tower is coming through a loan agreement with Banco Santander that is guaranteed by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank.

“Going through MIGA has allowed the government to secure the seven-year loan at a low interest rate of approximately 3.23 percent per annum. As the loan agreement has recently been concluded, we are presenting the related resolution to Parliament today and the borrowings will be credited this current fiscal year.

“This means we will have the cash at the Central Bank in full, and in hand, in trust

for the Public Hospital Authority. This will allow us to pursue the project at an accelerated pace over the next 18 to 24 months with funding fully secured,” Dr Minnis continued.

“As mentioned, you will not see this allocation for the new PMH tower in the new (2021-2022) budget because the funds are being raised this fiscal year by Parliamentary approval, but the work will begin in earnest next fiscal year. We are on the way to a new ultra-modern high tech hospital.”

A parliamentary resolution tabled yesterday revealed that the total MIGA-guaranteed facility is worth some $115.247m, with Banco Santander leading a consortium of lenders.

Some $46.847m has already been disbursed to aid the fight against COVID-19 and modernise the public health system, with a further $68.4m to be drawn down before the fiscal year ends on June 30.

Explaining the rationale for this investment despite the government’s strained fiscal position, the Prime Minister said: “In terms of capital investment, the shortages of bed

space in hospitals and the need to expand health care has not been lost on this administration.

“While delayed, due to the unprecedented impact of Hurricane Dorian, the COVID-19 virus demonstrated that we cannot prolong such investments. We are therefore moving swiftly to invest over $100m in hospital upgrades, with an estimated expenditure of over $70m targeted for PMH and more than $19m budgeted for the commencement of the new four-storey tower expansion at the Rand Memorial Hospital in Freeport.

“Both facilities, which are the bedrock of our public healthcare system on our two most populated islands, will be upgraded with new, modern multi-storey towers that will house the most cutting edge equipment, expand their footprint, provide additional bed space and enhance day-to-day operations.”

Dr Minnis added: “What you will see in the budget is a $19m allocation for the new tower at the Rand Memorial Hospital to cover the initial phases of what will ultimately be a $39m project. This four-storey expansion to the

newly-opened and renovated Rand Hospital will ensure that Grand Bahamians will also have the benefit of a world class, modern hospital facility.

“Learning from the damages to the facility from Hurricane Dorian, we are building back smarter. This multi-storey facility will ensure that should Grand Bahama be impacted by another severe storm, patients can continue to receive the best of care in a new climate resilient facility, constructed vertically, to withstand flooding.

“Indeed, Mr Speaker, we will be investing over $100m over the next 18 months or so in a massive upgrade of our core medical facilities. When complete, we will have the equipment, technology and facilities that will rival any medical centre in the region and in the world.”

Dr Minnis also touted a $1m allocation in the upcoming budget to finance the roll-out of telemedicine, while the government has also increased subsidies for National Health Insurance from $38m to $45m in the 2021-2022 fiscal year to aid its push for all Bahamians to have access to high-quality healthcare.

THE TRIBUNE

Thursday, May 27, 2021, PAGE 3

‘STRUCTURE’ CRITICAL FOR 2,500 JOBS SUCCESS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government’s initiatives to create up to 2,500 jobs and “level the playing field” for small and medium-sized businesses must be “coherent and structured” to succeed, a consultant advised yesterday.

Mark Turnquest, of Mark A Turnquest Consulting, told Tribune Business that “execution” is critical for the government to achieve its economic revival ambitions through the Accelerated Bahamas Recovery Plan that it unveiled yesterday in the last budget prior to the general election.

He spoke out after the prime minister revealed a revised $40m tax credit initiative designed to incentivise companies to hire up to ten additional workers once the 2021-2022 fiscal year begins on July 1.

Dr Hubert Minnis, in

MARK TURNQUEST disclosing the Employment Incentive Programme, said: “Businesses will be able to apply for a VAT tax credit to cover the salaries of up to ten new employees brought on to their payrolls as of July 1.

“The allowable tax credit will be up to $400 per week per employee. Eligible businesses will have to follow certain compliance rules and must be in good standing with the National Insurance Board (NIB) and the tax authorities.

“We anticipate that up to 250 businesses will take advantage of this opportunity and get up to 2,500 persons back to work.

‘SPECIAL INTEREST’ CHARGE ON 60% MICROBREWERY TAX CUT

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

THE opposition’s deputy leader yesterday slammed the 60 percent reduction in excise tax rates for microbreweries as a move designed to benefit what he described as “special interests”.

Chester Cooper, also the Progressive Liberal Party’s deputy leader, in responding to the microbrewery tax breaks unveiled in the budget, said: “We are genuinely concerned that this could very well be driven by the lobby of special interests. We’re going to look into this further. We are going to investigate who are the owners of these micro breweries in the country.”

CHESTER COOPER Mr Cooper did not identify who he was referring to, but Pirate’s Republic’s website states it was founded

by Stephen Holowesko with Susan HoloweskoLarson also listed as a vice-president and director.

The Holowesko family are major supporters of both the Free National Movement (FNM) and the prime minister himself.

In legislative reforms accompanying yesterday’s

The estimated cost of this investment in job creation will be approximately $40m in foregone revenue - in line with the amounts related to the previous payroll support programme.”

The Provisional Employment Incentive Programme Bill 2021, which gives the scheme a legal footing, confirms that business licence fee as well as VAT credits will be on offer to employers who must apply to the VAT comptroller for permission to participate in the one-year arrangement that lasts until end-June 2022.

Participants must be VAT registrants, and the value of credits on offer is capped at $400 per worker. Claims for credits must be submitted by end-September 2022, with companies able to apply to participate until December 31, 2021. Inspections of business premises to ensure firms comply with the rules, and penalties for infractions, are also provided for in the Bill.

Peter Goudie, the

Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) labour division head, responding to the jobs initiative, told Tribune Business: “It sounds like a good idea and way to get people back and employed, and the country back on its feet. It sounds like a great incentive to get people back to work.

“This is nothing but positive news. I just hope a lot of businesses take advantage of it. It’s a good deal form everybody to me. I think it’s a very positive thing. It will help with taxes.

People have to pay taxes, NIB and all the rest of it. To me I hope it works because it’s nothing but good news.”

While the government’s jobs initiative will make a dent in the unemployment rate if it hits its target, it still remains far short of absorbing the thousands of unemployed and furloughed workers whose lives have been disrupted

by COVID-19.

Elsewhere, Dr Minnis pledged that small and medium-sized Bahamian companies will now be placed on an equal footing withe foreign investors and larger firms when it comes to accessing tax breaks and investment incentives.

“Small and mediumsized businesses have often lamented that start-up costs are prohibitive, and that big businesses and foreign investors get the kinds of incentives they do not qualify for. We are addressing this concern head on, ensuring that Bahamians have access to start-up concessions just as large investment projects do,” the prime minister pledged.

“Now every Bahamian small business and entrepreneur will be able to apply for and obtain dutyfree concessions on all the items needed to start or expand their business, including on the first stock of inventory.

“Any Bahamian entrepreneur. Any small business

with an annual turnover of less than $5m. Anywhere in the country. You will get the same treatment as the mega resort, or the large manufacturer. We are levelling the playing field.”

Mr Turnquest, though, told Tribune Business it remained to be seen whether this becomes the reality on the ground. “Anything like that is a boost,” he conceded. “Ninety percent of businesses are under $5m anyhow.

“The challenge is it has to be coherent and structured properly. Nothing is structured. They’re just throwing things out. Everything they said today has to be structured properly so that if they lose the election next year everything is set in stone.

This could be an FNM policy that is thrown in the gutter by a PLP win.

“The execution agency will be key to see how this develops. If it is not set in stone it will be lost like the National Development Plan. It will be a policy not legislated.”

budget, the government is planning to change the Spirits and Beer Manufacture Act by slashing the excise tax rate on beer produced by all microbreweries - not just Pirate’s Republic - from $5 per gallon to just $2 per gallon.

It is also adding a precise definition of microbreweries, stating that they are businesses which produce between 100 and 7,000 barrels beer year that are either consumed or sold on their premises.

Dr Hubert Minnis, justifying the move during his budget presentation, said: “To encourage the growth and development of this promising niche sector, microbreweries have been defined in the law and will benefit from a reduction in their excise tax rate from $5 per gallon to $2 per gallon.

“They will also be able to sell their products outside of their premises. Products from microbreweries are

high value collectors’ items and will promote job creation and export revenue.”

Mr Cooper, though, said: “We found it curious that during the last budget there were exemptions for microbreweries, and during this budget communication they are expanding these exemptions for micro breweries.”

He vowed to “examine” who may will benefit from this tax relief while calling for a more equitable taxation structure for ordinary Bahamians.

Mr Cooper said: “One of the big things we noticed in this communication is that it is not very transformative in its thinking. This is a short-term election budget, without much thought for the future.

“We have long said that there needs to be a discussion on tax reform in the country. The PLP will have that discussion. We have begun the process of tax

reform by advocating for the reduction of the VAT rate to ten percent, and we have began the discussion on how we collect our taxes.

“We have promised the firm implementation of the Revenue Enhancement Unit so that everybody can pay their fair share,” he added. “We want to ensure that people who can afford to pay are paying, and this is why we often criticize the government for abandoning the revenue enhancement unit.

“We are going to reimplement it. It collected up to $30m a month. Once we do the proper things in terms of collecting the taxes we have, then we can make very informed decisions as to what the levers are for further tax reforms.”

The Minnis administration ultimately reformed the Revenue Enhancement Unit, having argued that it was given no legal basis for

its activities by the former Christie government.

Elsewhere, the government moved to further stimulate the construction industry by slashing import duties on various building materials to 20 percent or 25 percent, following similar moves in the prior year’s budget.

“Most notably this includes the reduction in duty on electrical wire to 20 percent, and continues the reduction duties on construction-related items that we began last year,” Dr Minnis added.

Asserting that the Budget’s tax breaks were “designed to accelerate the economic recovery and rebound of The Bahamas”, and “ease the lives of Bahamians”, the prime minister said import duties on “IT related hardware and cabling” were being eliminated to enable the private sector and individual businesses to better participate in the digital economy.

PAGE 4, Thursday, May 27, 2021

THE TRIBUNE

Mixed reaction to Out Island ‘economic zone’

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE prime minister’s decision to designate “lagging” Family Islands as a special economic zone yesterday provoked a mixed reaction from business executives in those areas.

While some suggested that the tax breaks and concessions will “go a long way”, others said this was little different from the Family Islands Development Encouragement Act which was itself yesterday extended for a further five years to June 30, 2026.

The prime minister, unveiling the budget in the

House of Assembly, said the government had decided to include Andros in the zone together with the southern islands because “the pace of consistent economic development has been behind that of the rest of the country”.

Other locations included in the initiative, which aims “to spur immediate economic activity, and to encourage persons to invest in homes and businesses in these islands”, are Ragged Island, San Salvador, Rum Cay, Cat Island, Long Island, Mayaguana, Inagua, Crooked Island, Acklins and Long Cay. “Through the provisions of an amended

Family Island Development Encouragement Act, residents and businesses on these islands - or investing in these islands - will qualify for both duty and VAT concessions on the full range of materials they will need to build or renovate a house - or to start or expand a business,” Dr Hubert Minnis added.

“The designation as a special economic zone also provides concessions on business licences payable and on real property tax for qualifying individuals. Included in this are concessions and discounts for VAT on conveyances, with zero VAT payable by Bahamians on transactions

under $500,000, and with discounted VAT for nonBahamians under that same threshold.

“These concessions will last for two years and are intended to be a catalyst for accelerated economic activity in the southern Islands by prospective investors, as well as Bahamians who may be looking to build or buy a home in those islands.”

Joe Rahming, president of the South Andros Chamber of Commerce, told Tribune Business the expanded incentives under the Family Island Development Encouragement Act (FIDEA) were “good news”.

‘Refreshing: PM admits tax cuts raise revenues

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ABACO’S Chamber of Commerce president yesterday said it was “refreshing” for the prime minister to publicly acknowledge that reducing tax rates results in increased government revenues.

Ken Hutton, pictured, hailed that remark “from the political arena” as confirmation of what the Bahamian private sector and investors have long argued - that carefully-targeted tax

breaks and incentives can stimulate economic activity that generates more revenue for the Public Treasury than is initially foregone.

He spoke out after Dr Hubert Minnis, during his unveiling of the 20212022 budget in the House of Assembly, disclosed how 49 individuals had taken advantage of tax exemptions afforded by the Over-the-Hill revitalisation initiative to obtain grants and become entrepreneurs collectively employing 146 persons.

“These individuals were able to increase revenues

by $4.8m,” the prime minister said. “What that proves is that as you reduce taxes, you increase revenue and increase employment.

The inner city is a perfect example.”

Mr Hutton, in response, said: “The interesting thing in his speech is he did acknowledge that a reduction in taxation results in an increase in revenue. It was refreshing to hear that from the political arena. For the private sector that’s something we already knew, but it was refreshing to hear that from the public sector that they acknowledge that is the case economically.”

Meanwhile, Dr Minnis

sought to reassure Bahamians that the one:one currency peg with the US dollar is under no threat of devaluation as a result of COVID-19, going so far as to assert that it is “as strong as it has ever been”.

“Notwithstanding the worst economic calamities to befall The Bahamas in its recorded history, it is the prudent management and planning of this administration that has ensured that our foreign exchange holdings remained healthy and robust,” he said.

“That meant that our Bahamian dollar has remained as strong as it has ever been. We have protected the value of the Bahamian dollar, and thus the value of the assets of all Bahamian citizens and residents.

“The Bahamian dollar has not - and will not come under any threat of devaluation as long as this administration remains in office. We take seriously our responsibility to you to protect the value of the Bahamian dollar.”

“This would be good for those who are financially able, but anything is good because it can attract people to invest,” he added.

“This can encourage more small business investment that can turn the economy.

This can go a long way.”

However, Michael Harris, owner/operator of Neighbourhood Convenience Store on Cat Island, argued that the initiative unveiled by the prime minister is “nothing new” and that the Family Islands always enjoyed duty concessions despite having to pay stamp tax.

Mr Harris said: “The only thing new in this is the VAT concessions, but the

VAT came in at 7.5 percent and then they raised it up to 12 percent, so I guess the prime minister lifting the 12 percent is a plus.

“What the prime minister needs to do in terms of businesses is that he needs to revisit the VAT on the businesses where the customers could now benefit. You have the small man who still has to pay that 12 percent, but what happens at the end of the day with businesses is that they could get their claim back for whatever they put in. They can get their returns. The poor man doesn’t get any returns, so if you want to do something for the poor man then cut the VAT.”

THE TRIBUNE

Thursday, May 27, 2021, PAGE 5

Opposition deputy in blast at missed Fiscal Council report

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE opposition’s deputy leader yesterday slammed the government over the Fiscal Responsibility Council’s (FRC) failure to meet its March reporting deadline.

Chester Cooper, who is also the Progressive Liberal Party’s (PLP) finance spokesman, said the Minnis administration had missed the “required report” of

‘Ready, willing and able’ on Abaco port

FROM PAGE ONE

Such a development, he added, would force these cargo vessels to instead offload their goods in Nassau or Freeport rather than Abaco, resulting in increased costs and extra time to get vital products to homeowners and businesses still rebuilding their Dorian-ravaged properties.

“We are incredibly concerned with the port,” Mr Hutton told this newspaper.

“If there are things being done we are not aware of them. This is concerning because the major stakeholders in the economy are the major users of that port. If something is being done, it behooves the government to invite the private sector into those plans. If nothing is being done, it’s even more concerning.”

Mr Hutton said that while the Marsh Harbour port had been cleaned up since Dorian, it still remained an “unsecured” facility when measured against ISPS standards. “We need to have security,” he added. “The private sector here is ready,

the Fiscal Responsibility Council that was due by March 31, 2021.

The Fiscal Responsibility Act mandates in section 23 (b) that the Fiscal Responsibility Council’s assessment of the government’s mid-year budget, and whether it meets desired fiscal objectives and principles, should be submitted to Parliament by March 31. They are not transparent or accountable, and they consistently break their own laws,” Mr

Cooper charged.

Kevin Burrows, the Fiscal Responsibility Council chairman, told Tribune Business yesterday that the report will be issued next week as the final draft has been completed. He advised that the council had issues with its website and this was the reason why the report was not presented to Parliament.

“We will provide comment on the report next week when we publish the report, then we will have comments on this budget in July,” Mr Burrows said.

Mr Cooper, meanwhile, added: “We are racking up foreign debt that will come due in a few years. We note that the government has been granted a $100m emergency loan from the World Bank.

He also slammed the government on its “piecemeal” approach to economic growth, adding that the

willing and able to work with the government to resolve the issue. We have groups ready, willing and able to fund it at zero cost to the government.

“The waiver allows vessels that call here to return to the US directly. Loss of that waiver means those ships no longer can return directly to the US. That means everything coming to Nassau, unless those ships are not prepared to go back to the US, all those goods bound for Abaco have to stop at an intermediate port in Nassau or Grand Bahama and be transshipped to Abaco. That affects the timing and cost of goods coming into Abaco, and retards the process.”

Still, Mr Hutton hailed the government’s extension of the Special Economic Recovery Zones (SERZs) for Abaco and Grand Bahama until year-end 2021 as providing “stability and predictability” for the ongoing Dorian restoration and its costs.

Dr Hubert Minnis, addressing the House of Assembly in unveiling the 2021-2022 budget, said: “We appreciate that the reconstruction efforts in Abaco and Grand Bahama are continuing apace, and that progress has been limited by labour shortages and even supplies shortage as typical

supply chain operations have been disrupted because of the pandemic.

“To continue to support the reconstruction efforts in Abaco and Grand Bahamas, we are extending the current relief order, known as the SERZ order, to the end of December 2021. This order provides tax relief for the full suite of construction-related supplies and activities and it will go a long way in supporting the full restoration of the impacted communities.”

Dr Minnis continued: “I am also pleased to advise that for the communities of Abaco and Grand Bahama we are for a period of two years eliminating the VAT on conveyances for properties under $250,000 for Bahamians to encourage persons to invest in buying properties and homes in those islands.

Foreign buyers under the same threshold will get a discounted VAT rate.

“Again, under the Accelerate Bahamas Plan, we want to incentivise persons to move with urgency with the investment plans. Not only will this spur commercial activity, it will make these transactions more affordable for ordinary Bahamians.”

budget “presents nothing to measurably confront the dire situation we are in”. ] Mr Cooper then attacked the government’s failure to mention its plans for the medical marijuana industry in yesterday’s budget communication despite touting it as a potential economic game changer for

The Bahamas.

“This speaks to the lack of a strategy on a longer term thinking. We believe that the cannabis legislation was touted now for a few years really as a political gimmick,” Mr Cooper added.

“We expect that before elections that this legislation will be brought but, again, there’s

no big picture thinking on the issue. It’s narrow, politically driven, gimmicks.”

“I am not surprised that when it comes to the creation of new industries, when it comes to ideas for economic growth, that this wasn’t touted as one of the things that could help to benefit The Bahamas.”

COMMONWEALTH OF THE BAHAMAS

2021

IN THE SUPREME COURT

QUI/No. 00210

Equity Side IN THE MATTER OF THE QUIETING TITLES ACT 1959

AND IN THE MATTER of Petition of DIKIA FORBES of the Island of New Providence, The Bahamas

AND IN THE MATTER of ALL THAT piece parcel or lot of land being Admeasurement 7122 square feet and situated 490 feet south of Robert Sandilands Road in the Eastern District of New Providence and bounded Northerly by vacant land and running thereon (1150.39) feet Southerly by a 30 feet wide road running thereon (61.04) feet Westerly by a 30 feet wide road reservation and running thereon (118.00) feet.

NOTICE Dikia Forbes the Petitioner claims to be the owner in Possession of ALL THAT piece or lot of land hereinafter described and has made application of the Supreme Court of the Commonwealth of The Bahamas Under Section 3 of the Quieting Title Act, 1959 to have its title to the said land investigated and the nature and extent thereof determined and declared in a Certificate of Title to be granted by the Court in accordance with the provision of the said Act. Copies of a diagram or plan showing the position boundaries and shape marks and dimensions of the said piece parcel or lot of land may be inspected during normal working hours at the following: (a)

The Registry of the Supreme Court, New Providence in the

Commonwealth of The Bahamas and the Chambers of . Alfred Gray & Company, Dowdeswell House, Dowdeswell and Armstrong Streets, New Providence;

NOTICE IS HEREBY GIVEN that any person or persons having dower or right of dower or an Adverse Claim or Claim not recognized in the Petition shall with thirty (30) days after the appearance of the Notice herein file in the Registry of The Supreme Court in New Providence aforesaid and serve on the Petitioner or the undersigned a Statement of his/her claim in the prescribed form verified by an Affidavit to be filed therewith.

Failure of any such person to file and serve a statement of claim on or before the 30th June 2021 will operate as a bar to such claim.

Dated this 3rd day of May A.D., 2021

V. ALFRED GRAY & CO.

Chambers Dowdeswell House Dowdeswell & Armstrong Streets Nassau, Bahamas

Attorneys for the Petitioner

PAGE 6, Thursday, May 27, 2021

‘Deadly’ debt costs breach $1/2bn mark FROM PAGE ONE $459.154m in the fiscal years 2022-2023 and 2023-2024 respectively.

“Tell me in God’s name how anybody thinks that’s sustainable,” Mr Myers told this newspaper, as the cost associated with COVID and Dorian-related borrowing start to hit home. “Taking on any more debt, how’s that sustainable? If austerity measures are not high on the agenda, and I’m sure they are, we’ve got to get somebody else [into government] that takes it more seriously.

“There’s no doubt that in the next cycle, whoever

the government is, they are going to have to deal with the size of government relative to the economy.

It’s got to go in reverse.

It cannot continue. Right now, ignoring the fact we’ve eaten away at whatever headroom used to have for external shocks, the debt service costs are now a significant chunk of overall government expenditure.

“Debt servicing is now higher than two major social programmes. That’s deadly.

We don’t get any value from that. The public does not get any value from that. That’s just paid to bankers because of the irresponsible behaviour in the past. It makes you want to throw up. Not

THE TRIBUNE paying that back, defaulting on that, is a very strong reality if there are any more external shocks.”

Gowon Bowe, Fidelity Bank (Bahamas) chief executive, while lamenting the absence of a multi-year debt management strategy in yesterday’s budget, also told Tribune Business that the $500m-plus debt servicing costs are equivalent to almost “a quarter” of the projected $2.245bn revenue intake and not far off onefifth of $2.825bn in planned recurrent spending.

“The absolute amount of debt owing is the key,” he added. “We are where we are, and can’t dismiss that, but at some point we’re going to have to make harsh decisions that we’re going to reduce the absolute dollar amount regardless of where GDP is, with its ebbs and flows, so we’re in

a comfortable debt service position.”

The Minnis administration shied away from any major spending cuts or across-the-board revenue increases via new and/or hikes taxes, instead opting for a package of narrowlyfocused, targeted income enhancement measures as forecast by Tribune Business.

Some observers will likely describe it as a ‘balanced budget’ because the prime minister appeared to be trying to appease multiple competing forces and pressures such as fiscal prudence, economic growth, the Bahamian people with one eye on the upcoming election, and hammering home a message of economic growth.

Dr Minnis outlined the framework of what he described as a growth strategy, the Accelerate Bahamas Recovery Plan, while also seeking to persuade voters about the strength of his government’s performance in managing the COVID-19 pandemic and its economic devastation.

The budget went about as far as it could in being preelection friendly without abandoning fiscal prudence ahead of harsher austerity measures that will have to be introduced in coming years to tackle a national debt that is forecast to hit $10.755bn at end-June 2024.

One observer, speaking on condition of anonymity, told Tribune Business of the budget: “There was no sense of urgency to address some of the serious issues we have. It was really an election budget. To say I was disappointed was an under-statement. The reality is that the government’s having some serious cash flow issues. That’s my suspicion.”

Mr Myers, meanwhile, said that both the government and opposition Progressive Liberal Party (PLP) had acknowledged The Bahamas’ fiscal peril in discussions with ORG. However, he argued that the prime minister was still “sugar coating a very dangerous set of social and fiscal circumstances, in my

opinion” and failing to fully level with the public on just how dire the situation and consequences are.

“I think the government is taking it seriously, and from conversations we’ve had with the opposition they are also taking it seriously. I do believe we have potentially turned the corner on the understanding we can no longer kick the can down the road. I do believe they’ve reached that sobering reality,” Mr Myers told Tribune Business.

“Whichever administration gets in understands the sobering reality of having to deal with the irresponsible actions and behaviours of previous governments.

Unfortunately it’s a little too late, but they’ve arrived at that reality.

“They understand we’re at the beginning of a long haul to get out of a social and fiscal crisis. I don’t think they’ve [the government] gone far enough but they clearly understand they have a problem. I think they need to do a lot more, but it’s a start.”

Mr Myers, though, said the government’s decision to place on hold efforts to make loss-making stateowned enterprises (SOEs) more efficient and get them to a position where they can recover all their costs was “not the right answer” given the growing fiscal pressures.

“Our fiscal strategy plan did call for the gradual reduction of interventions to the SOEs as they moved toward greater self-sufficiency and cost recovery.

However, this element of the plan has been deferred for this year, due to the effects of the pandemic on the customary revenue flows of these entities,” Dr Minnis admitted.

“The outlays to those SOEs in the aviation sector have this year far exceeded their allocations. Despite some return to normalcy, the allocations to Bahamasair, Water & Sewerage and Nassau Flight Services will be higher than typical years, as cash flow slowly returns to normal.

“The increased allocation to National Health Insurance (NHI) is in line with a key pillar of Accelerate

Bahamas to improve access to health care by supporting more increased sign-ups for NHI and allowing greater access by our citizens to public and private primary care.”

Taxpayer subsidies to SOEs are forecast to increase by more than $18m year-over-year to almost $426m in 2021-2022, representing a further drain on the Public Treasury. Bahamasair is forecast to receive $30m, up from the initial $19m allocated for the current fiscal year, while Water & Sewerage is due to gain some $26m.

The projected $951.8m deficit for the 2021-2022 fiscal year means that the government will likely have borrowed more than $3.1bn in three years by the time June 2022 is reached.

“With signs pointing to a global rebound in fiscal year 2021-2022 - and with the revenue measures announced earlier - total government revenues are projected at $2.247bn, representing an increase of $588.3m or 35.5 percent over the projected fiscal year 2020-2021 total revenue,” Dr Minnis said.

“Despite this improvement, revenues are projected to remain 7.5 percent below the $2.426bn posted in fiscal year 20182019, reflecting the fact that our economy will not likely return to full capacity during the upcoming fiscal year. Recurrent expenditure is estimated at $2.83bn, an increase of $270.1m or a 10.6 percent increase over the projected spend for fiscal year 2020-2021.”

As for capital spending, he added: “If we are to have an accelerated economy, we must continue the investments in infrastructure that will undergird economic development and commerce, and provide necessary economic stimulus.

“We are projecting some $372.4m in capital outlays in the upcoming fiscal year. While this is below the $515.5m budgeted last year, it represents an increase over the projected $200m in actual capital expenditure for this fiscal year.”

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THE TRIBUNE

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Thursday, May 27, 2021, PAGE 7

PAGE 8, Thursday, May 27, 2021

THE TRIBUNE

Tourism chief hails ‘long overdue’ $31m Airbnb tax increase FROM PAGE ONE

Minnis said: “This means taking steps toward standardising taxation in such a way that all parties pay their fair share, and that all businesses can compete on a level playing field.

“My administration has made several statements regarding the untapped potential of the vacation homes market and the millions of tax dollars that go uncollected each year. We are amending the law to clarify that all vacation home marketplaces, such as AirBnB and VRBO, are required to pay VAT on rentals and commissions.

“Those marketplaces who are charging VAT presently have interpreted the legislation as being only applicable to the commissions paid out. The clarification in the law will make it explicit: VAT will be applicable on the full value of the rental,” he added.

“By amending the requirements from the vacation home rental market

as mentioned, we estimate $31m in increased government revenue.” Mr Sands reaffirmed yesterday that the hotel industry has long been calling for such a taxation “level playing field” between itself and the vacation rental market, which grew rapidly preCOVID-19 and is likely to resume that trajectory afterwards.

“I think we welcome the government’s proposal to level the playing field,” he told this newspaper. “We think this will go a long way in generating incremental income for the government as well, and it will also create opportunities for the government to have additional funds available for the tourism sector in terms of airlift support and marketing for tourism’s consolidation and rebound.

“This is long overdue.

We’re aware taxes were already paid on commission, but on commission and the cost of stay is welcome news. This is a position our sector has advocated for the past four to five years, and

it’s welcome news for us.”

The vacation rental market has long been viewed as a source of increasing local entrepreneurship, and for giving Bahamians a greater ownership stake in the country’s largest industry, tourism.

One vacation rental owner yesterday told Tribune Business he was less than impressed by the government’s tax grab.

“They can’t seem to let that one go,” Bruce Raine said. “With all these things, the people that pay the tax are the people at the bottom. What’s going to happen is that we’re competing with other markets for tourists. If the Airbnb guest has to pay another 12 percent on the full value, we can either try and get a higher price or suck it up and bear it ourselves.

“It makes it more expensive for the guest, and we’re not the only place that has this. We have Cayman, Turks & Caicos, and they are a lot cheaper all around than we are in my view. It’s always the small people

COMMONWEALTH OF THE BAHAMAS

2021 QUI/No. 00195

IN THE SUPREME COURT Equity Side

IN THE MATTER OF THE QUIETING TITLES ACT 1959 AND IN THE MATTER of Petition of HENRY A. DELANCY of the Island of Eleuthera, The Bahamas.

AND

IN THE MATTER of ALL THAT piece parcel or lot of land originally granted to Henry Duncan in 1790 and situate on the Western side of the New Public Highway South of Green Castle and North of Wemyss Bight Eleuthera and being of admeasurements 12.874 Acres and bounded Eastwardly by a New Public Road to Green Castle and running thereon 603.17 feet Westwardly by other portion of land claimed by Luck Delancy and running thereon 1380.22 feet Northwardly by vacant land and running 814.10 feet Southwardly by land claimed by Luck Delancy and running thereon 803.1 7 feet.

AND

All that piece parcel or lot of land originally granted to Henry Duncan in 1790 and situated on the Eastern Side of a New Public Highway South of Green Castle and North of Wemyss Bight Eleuthera and being of admeasurements 53.323 Acres and being Triangular in shape and bounded Westwardly by the New Public Road to Green Castle and running thereon 3072.48feet Southeastwardly by land now claimed by Millars Commoners and running thereon 20,762. Feet more or less Northeastwardly by land claimed by one Ann Miller in 1876 and running thereon 24,396. Feet more or less AND

All that piece parcel or lot of land of admeasurements 4.734 Acres and situate on the Eastern Side of Cotton Bay Road now called Cris the Fireman Blvd and bounded Northeastwardly Irregularly by a Road Reservation and running thereon for a total of 564 feet Southeastwardly by a portion of land claimed by Ann Miller Commoner and running thereon 403.80 feet Southwestwardly by another portion of land claimed by Ann Miller Commoner and running thereon (404.60) feet Northwestwardly Irregularly by the Cotton Bay Road and a portion of land owned by the Nixons and running thereon Irregularly for a total of 543.27.

NOTICE Herny A. Delancy the Petitioner claims to be the owner in Possession of ALL THAT piece or lot of land hereinafter described and has made application of the Supreme Court of the Commonwealth of The Bahamas Under Section 3 of the Quieting Title Act, 1959 to have its title to the said land investigated and the nature and extent thereof determined and declared in a Certificate of Title to be granted by the Court in accordance with the provision of the said Act. Copies of a diagram or plan showing the position boundaries and shape marks and dimensions of the said piece parcel or lot of land may be inspected during normal working hours at the following: (a) The Registry of the Supreme Court, New Providence in the Commonwealth of The Bahamas and the Chambers of . Alfred Gray & Company, Dowdeswell House, Dowdeswell and Armstrong Streets, New Providence;

NOTICE IS HEREBY GIVEN that any person or persons having dower or right of dower or an Adverse Claim or Claim not recognized in the Petition shall with thirty (30) days after the appearance of the Notice herein file in the Registry of The Supreme Court in New Providence aforesaid and serve on the Petitioner or the undersigned a Statement of his/her claim in the prescribed form verified by an Affidavit to be filed therewith.

Failure of any such person to file and serve a statement of claim on or before the 30th June 2021 will operate as a bar to such claim.

Dated this 3 rd day of May A.D., 2021

V. ALFRED GRAY & CO.

Chambers Dowdeswell House Dowdeswell & Armstrong Streets Nassau, Bahamas

Attorneys for the Petitioner

that get crushed. There are some wealthy owners, but most are low end from $70 up to $200 per night.

You add $24 on to $200, and all of a sudden you’re at $225, and we’re already expensive.”

Dr Minnis yesterday indicated that vacation rentals are making a stronger recovery than many other tourism industry segments, saying: “On the property front, short-term rentals in the Airbnb market have already shown signs of rebound since the careful reopening of our tourism sector in November.

“Occupancy rates have more than doubled, from 8.2 percent in November 2020 to 16.6 percent in March 2021. At the same time, there was a two percent increase in average daily rental rates and a 52 percent increase in room reservations.

“Based on Central Bank data for the period endMarch 2021, vacation home rentals and comparable hotel listings increased by 65.9 percent and 55.4

percent, respectively. This also impacted average daily room rates which similarly increased by 10.8 and 7.5 percent to $497.95 and $169.36 for vacation home rentals and hotel listings, respectively.”

Among other tax measures unveiled yesterday, the government is increasing the excise tax rate paid on cheroots and cigarillos to 220 percent, or 50 cents per stick, to bring them in line with that of conventional cigars.

“We are also amending the VAT Act to assist businesses who tend to remain in a habitual credit position with the Department of Inland Revenue due to the nature of their business,” Dr Minnis added.

“We are codifying provisions that, up to now, had just been VAT rules and which permit appropriate accounting treatments to be used to address VAT liabilities without putting businesses in an unsustainable cash flow deficit.

“This will avoid the situation where some groups of

businesses have to put out substantial amounts of cash even when they are in a credit position, only to have to wait for a refund from the Department of Inland Revenue.”

As for real property tax, he added that some 14,000 properties have been added to the tax roll, which has “increased the value of taxable properties by $9bn.

This will translate into some anticipated $14m in increased real property tax revenue”.

THE TRIBUNE

‘Makes no sense’: Realtors challenge tax crackdown plan

FROM PAGE ONE

The changes, which have been seen by Tribune Business, prohibit the renewal of a tenant’s business licence if they fail to agree to pay their rent to the Department of Inland Revenue rather than the delinquent landlord.

And, in return for doing so, the landlord will be prevented from evicting their business from the property even though he is receiving no rent. Thus the legal reforms appear to rip up the typical contractual arrangement between a landlord and tenant, instead inserting the Department of Inland Revenue, which could pave the way for a potential legal challenge.

Mr Morley yesterday questioned why the government did not simply use the existing laws to combat delinquent commercial property owners as it has the power to seize the subject real estate, and sell it at auction, to recover real property taxes owing.

Tribune Business recently reported how the Finlayson family lost its bid to overturn a Supreme Court order compelling the sale of a downtown Bay Street property to settle a near-$2.2m real property tax debt, and Mr Morley said the government’s budget plan will be “difficult” to implement and enforce.

“Most commercial property leases are structured on a net lease basis, net of the rent and common

Thursday, May 27, 2021, PAGE 9 area maintenance (CAM) charge,” he explained.

“What takes place is that included in the CAM is the tenant’s portion of the real property.

“In all fairness, if the government wanted to go after the tenant, the tenant should only be responsible for their portion of the rent.... It would only be fair to take that share of the property tax that the tenant is supposed to pay to the landlord, not the whole thing [rental payment].

“Grabbing all the rental income is wrong. Get the tenant to pay the portion of the real property tax that they pay to the landlord, and pay it to the Department of Inland Revenue.

There’s a lot of things in play that really cause an issue on this. Who is the government going after here? Are they going after the tenant, are they going after the landlord, or the rental income to pay a mortgage?”

Mr Morley warned that the government’s plans to seize all the rental income from delinquent commercial properties would leave many landlords/owners unable to repay the mortgage financing secured on their buildings, and “then you would have a whole bunch of mortgages in default”.

Questioning why the government was not requiring banks and other property lenders to pay the tax arrears on behalf of their borrowers, as provided for in the Real Property Tax Act, Mr Morley added: “Plain and simple what they need to do is enforce the law on the books.

“Right now, the government has the opportunity

under the law to sell the property to recover the real property tax owed, and they need to do that more regularly. That way you get rid of deadbeat landlords.

There are a lot of deadbeat landlords that don’t pay real property tax until such time as they sell the property, when they will go in and negotiate a reduction in the surcharge in exchange for a lump sum payment.”

Mario Carey, the Better Homes and Gardens Real Estate MCR Group Bahamas principal, backed Mr Morley in declaring that the government’s plan “makes no sense”. He added: “How can you put the burden on a business guy who has put in leasehold improvements, and now the government is telling them they can’t get a business licence because the landlord has not paid real property tax?

“What’s going to ultimately happen is that the bank is going to foreclose on the property and everyone is going to lose. Why not change the law to say you’ve got two years to pay your outstanding real property tax, and if you fail the government has a right to sell your property at auction.

“I don’t know what they were thinking. That’s a strange one. I wonder who they are protecting and who they are going after. It makes no sense.”

High-end real estate, as revealed by Tribune Business, was also targeted in yesterday’s budget for an additional $4m in revenue in the upcoming 2021-2022 fiscal year via the government increasing the VAT rate to 12 percent on the “portion” of real estate

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transactions valued above $2m.

“We are increasing the VAT on realty transactions for that portion of a real estate transaction over $2m,” Dr Minnis said. “Presently, all transactions of $100,000 are subject to ten percent VAT. With the amendment, any portion of a transaction that is over $2m will be charged at the full VAT rate of 12 percent. We anticipate this adjustment will yield an additional $4m.

“We are also including a new provision in the VAT legislation which requires a property owner to inform the Department of Inland Revenue when they are shifting the use of their owner-occupied home into a residential or commercial rental property. This will ensure that these buildings are properly classified.”

Christine Wallace-Whitfield, the Bahamas Real Estate Association’s (BREA)

president, in a statement said the sector would accept the tax hike if it was accompanied by an improvement in the ease of doing business which included faster processing of real estate transactions.

“The Bahamas Real Estate Association (BREA) is more than 700 members strong, and as a professional association we understand the government’s need to identify additional revenue sources,” she said.

PAGE 10, Thursday, May 27, 2021

THE TRIBUNE

What would it take to solve the student debt crisis?

By ANNA HELHOSKI NerdWallet THE possibility of federal student loan forgiveness grabs all the headlines. But experts say no single policy — not even wiping the slate clean for millions of borrowers — solves the root causes of the nation’s $1.74tn student loan debt crisis.

That debt has been fueled by decades of wages not keeping up with the rising cost of college. And unless wages increase and college costs decrease, students will

still need to take on debt to complete degrees, and they’ll face greater difficulty repaying loans.

“There are no $1.7tn silver bullets,” says Seth Frotman, executive director of the Student Borrower Protection Center, a nonprofit advocacy organisation.

So what could work? It’ll take more than a headlinegrabbing wipeout of student debt.

Frotman says, in addition to canceling debt, he would prioritise efforts to make college more affordable

and to reform the borrowing and repayment systems.

Michele Streeter, senior policy analyst at The Institute for College Access and Success, says student loans remain an important college access tool for students, but forgiveness and repayment programs should be easier to access and automated whenever possible.

As a new crop of students gets ready to borrow for college and multiple generations of borrowers grapple with debt, experts weigh in on possible solutions.

FORGIVE STUDENT LOAN DEBT Broad forgiveness — around $10,000, for example — could help the most vulnerable borrowers: those who never graduated and lack the bigger paychecks that typically come with a degree to pay off the debt they acquired along the way.

Experts diverge on whether there should be

broad forgiveness. But if it does happen, they agree future debt accumulation must be addressed.

“Until somebody can come up with a proposal for what happens on day two and everyone starts borrowing again, that will be one major hurdle to any level of forgiveness,” says Carlo Salerno, vice president for research at CampusLogic, a developer of college financial aid management tools.

STREAMLINE EXISTING FORGIVENESS PROGRAMMES There’s too much red tape inherent to existing forgiveness programmes, experts say. Salerno calls it a “bureaucracy and paperwork crisis”.

These programmes have low rates of acceptance: As of November 2020, 6,493 Public Service Loan Forgiveness applications, or 2.2%, were approved, and so far just 32 borrowers total have received income-driven repayment forgiveness (though most won’t be eligible until 2035).

Democrats in Congress have suggested making all federal student loans and repayment plans eligible for PSLF, waiving restrictions for forgiveness and automatically qualifying borrowers.

CUT OR LOWER INTEREST RATES Federal student loan borrowers haven’t had to make payments since March 13, 2020, and they won’t again until Oct 1. During this pause, zero interest is accruing. That means loans won’t grow and, if you can afford to make payments, you can pay off your debt faster.

Making zero interest permanent or lowering interest on existing debt could help borrowers pay off their debt without growing the principal, says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors.

Many borrowers Mayotte hears from say their biggest gripe is growing interest.

“They say, ‘I feel like I should pay (my loans) back, but I don’t feel like I’m on a level playing field because of the interest,’” Mayotte says.

CONDENSE INCOMEDRIVEN REPAYMENT Income-driven repayment plans, federal options that set student loan payments at a portion of a borrower’s income, are a strong safety net. But experts say the four income-driven options — in addition to the three other federal repayment plans — should be streamlined into one new programme.

Some suggest automating enrollment.

“There’s no rhyme or reason for the variety of programs that exist in this space other than they were developed over time,” says Beth Akers, resident scholar at the American Enterprise Institute, a conservative public policy think tank, where she focuses on the economics of higher education. “We need to simplify the safety net for students and make it so simple that they can understand it exists and what benefits it can provide for them.”

Wesley Whistle, senior advisor for policy and strategy at New America, a left-of-centre public policy think tank, says automatic enrollment into an IDR plan could benefit delinquent or defaulted borrowers, but is concerned about auto-enrolling students right out of college and its effect on their ability to repay the principal. For many, payments may not even cover interest.

“Even working full time at a minimum wage job, you’re not making enough to knock into your principal,” says Whistle, who specialises in higher education policy. That could leave borrowers still paying student loans 20-25 years into the future.

MAKE COLLEGE TUITION FREE Tuition-free college at the associate’s degree level, as President Joe Biden has proposed, could particularly benefit low-income students who otherwise wouldn’t attend college and could reduce overall borrowing. College affordability advocates are calling for tuition-free four-year programs as well.

However, experts agree tuition-free programmes will still require borrowers to take on debt to cover living expenses — on or off campus.

“I don’t think it’s a terrible idea, but I don’t think it’s a game changer,” Akers says, adding she thinks expanding existing Pell Grant programs could have a stronger effect on affordability.

THE TRIBUNE

Thursday, May 27, 2021, PAGE 11

Defiant Belarus leader slams EU sanctions on plane diversion KYIV, UKRAINE Associated Press BELARUS’ authoritarian president lashed out yesterday at Europe for trying to “strangle” his country with sanctions over the diversion of a passenger jet, and he accused a dissident journalist arrested after the flight landed in Minsk of working to foment a “bloody rebellion”.

In a long, rambling speech to lawmakers and top officials, President Alexander Lukashenko defended his decision to tell the Ryanair flight to land in his country, maintaining his contention that there was a bomb threat against it. He called it an “absolute lie” that a fighter jet he scrambled forced the plane to land.

European Union leaders have denounced the move as an act of air piracy.

Ryanair has said its crew was instructed to land.

The plane was searched on the ground, and no bomb was found — but Raman Pratasevich, a 26-year-old journalist and activist, and his Russian girlfriend were detained.

“I acted in a lawful way, protecting people in line with international rules,” said the 66-year-old Lukashenko, who has ruled the ex-Soviet nation with an iron fist for more than a quarter century, relentlessly stifling dissent.

He fumed at the EU, accusing the West of waging what he said was “no longer just an information war but a modern hybrid war” against his country of 9.3 million.

Lukashenko doubled down on the idea that there was a grave security risk,

BELARUSIAN President Alexander Lukashenko addresses the Parliament in Minsk, Belarus yesterday. Lukashenko is defending his action to divert a European flight that triggered bruising European Union sanctions and accused the West of waging a “hybrid war” to “strangle” the ex-Soviet nation.

On Sunday Belarusian flight controllers ordered a Ryanair jetliner flying from Greece to Vilnius to land in the country’s capital, Minsk because of a bomb threat and a Belarusian fighter jet was scrambled to escort the plane.

Photo: Sergei Shelega/AP saying the plane was not far away from the Astravets nuclear power plant and that he had ordered air defense systems to high alert.

“We acted in strict accordance with aviation safety rules,” he said, claiming the crew hesitated for about a quarter hour before following the Belarusian flight controllers’ directions to land in Minsk. “It’s the captain who makes a decision according to all instructions and rules, and we offered our help. The captain was thinking for 15 minutes and consulting the bosses and Vilnius airport staff.”

He said the crew hesitated for so long that Belarusian

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authorities no longer expected the crew to turn back to Minsk, since the plane was already near the Lithuanian border, but they did. The Belarusian MiG-29 was sent to help direct the Ryanair plane to land and facilitate communication in case of problems.

“They should have been thankful to us!”

Lukashenko exclaimed.

“We did everything to save people.”

But he also alleged that Pratasevich and his associates were working with foreign spy agencies to “organise a massacre and a bloody rebellion in Belarus”.

He also warned his other foes abroad that the authorities will go after them.

“We know your faces, and it’s just a matter of time for you to be brought to account before the Belarusian people,” he said.

Lukashenko has faced unprecedented pressure at home with months of protests following his reelection to a sixth term in an August 2020 vote that the opposition rejects as rigged. But he has only increased the crackdown, and more than 35,000 people have been arrested since the protests began, with thousands beaten.

Pratasevich, who left Belarus in 2019, has become a top foe of Lukashenko.

He ran a popular messaging app that had a key role in helping organise the huge protests.

In Poland, Pratasevich’s parents said they fear for his

welfare and made an emotional plea for assistance.

“World, please stand up and help. I urge you very much because they will kill him, they will kill him!”

Natalia Pratasevich said through tears in an interview in Warsaw.

Her son appeared in a video broadcast on Belarusian state TV on Monday in which he confessed to some of the charges against him.

Natalia Pratasevich said

her son’s nose appeared to broken and he seemed to be wearing makeup to cover facial bruises. The journalist’s father, Dmitry Pratasevich, said his son must have been forced to make the confession.

Ivan Tertel, head of the Belarusian state security agency that still goes under its Soviet-era acronym KGB, said Pratasevich told investigators about “the sponsors of subversive

activities against Belarus, its mechanisms and special services and politicians behind it” and promised to release details soon.

Pratasevich, who fled to Lithuania in 2019, was charged in absentia with staging mass riots and fanning social hatred. Those carry a prison sentence of up to 15 years, and some fear he could face more serious charges, including some that carry the death penalty.

PAGE 12, Thursday, May 27, 2021

THE TRIBUNE

BANK CEOS OUTLINE PANDEMIC SUPPORT; SENATORS SPLIT ON ISSUES WASHINGTON Associated Press THE CEOs of the six biggest US banks went before Congress yesterday, eager to lay out their support for struggling consumers and small businesses hard hit by the pandemic.

But lawmakers focused more keenly in a Senate hearing on the contentious

social and political issues dividing the country.

Climate change, voting rights and racial inequity animated the debate and questioning of the executives in a hearing by the Senate Banking Committee. Democrats demanded the Wall Street powerhouses do more to help struggling minority communities. Republicans warned

against promoting social activism through banking practices.

“Profits have gone up, stock prices have soared, your own compensation is stratospheric — but workers get a smaller and smaller share of the wealth they create and they’re working harder than ever,” Democratic Sen Sherrod Brown of Ohio, the

committee chairman, told the CEOs. “We have a racial wealth and income gap that has barely budged since we passed the Civil Rights Act. Prove to us that you are going to use your positions to ... make our economy work for everyone — not just CEOs and the wealthy.”

Sen Pat Toomey of Pennsylvania, the panel’s

senior Republican, said the banking industry showed remarkable resilience during the pandemic recession as he mounted a robust defense of capitalism. Toomey echoed an idea with growing cultural currency among conservatives, voicing concern about increased pressure on banks “to embrace wokeism” and promote social activism through their policies.

The chief executives of JPMorgan Chase, Citigroup, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs appeared via video for the hearing by the Senate panel, which will be followed by a House committee session on Thursday.

The CEOs appeared as the US economy is recovering from the recession.

Big banks’ profits surged in the first three months of the year as the recovery took hold. They were able to release billions of dollars from their loan-loss reserves originally set aside in the early days of the pandemic last year.

The industry, which was blamed for the Great Recession more than a decade ago, has spent most of 2020 and this year trying to appear helpful and willing to work with borrowers and businesses.

Banks across the country waived fees and put millions of mortgages into forbearance to shore up Americans’ distressed finances in the pandemic.

“Citi quickly took action through a comprehensive approach to provide immediate, on-the-ground relief,” Jane Fraser, the new Citigroup CEO, testified.

Most of the banks’ relief measures were meant to be temporary and are now going away. Senators pushed the CEOs to promise they would not force anyone into foreclosure or bankruptcy resulting from pandemic hardship after the measures expired.

Democratic senators also pushed hard on what banks are doing to increase diversity in their ranks, and to address wealth inequality between Black and Latino households and white households.

“You’ve heard from everyone on this panel that we’re trying to do more,”

said JPMorgan Chase CEO Jamie Dimon, in response to questions on how well banks were doing in lending to minorities and the poor.

Brown criticised the banks for reducing lending to small businesses gutted by the pandemic while buying back their own stock. Bank of America, he said, reduced small business lending by 14% while buying back tens of billions of dollars worth of its stock.

CEO Brian Moynihan parried the attack, saying, “The good news is that we can do both.”

Challenged by Brown on the wide gulf between bank CEOs’ compensation and average employees’ pay, Dimon responded, “We’re very proud of the opportunities we give to all of our people.”

Sen Elizabeth Warren, D-Mass, a longtime critic of the big banks, pushed hard on why they collected overdraft fees on checking accounts during the pandemic.

In a tense exchange, she called Dimon “the king of the overdraft fee”, maintaining that JPMorgan collects more than seven times in fees per account than its competitors.

Dimon disputed the accuracy of Warren’s figures.

The bank says that last year it waived fees on over one million deposit accounts, including overdraft fees, with no questions asked. JPMorgan Chase has an account called Secure Banking with no overdraft fee and says it makes other accommodations to customers in specific situations.

Warren said the past year “has shown that corporate profits are more important to your bank” than helping struggling people.

Republicans, now in the minority in Congress after the latest national elections, renewed their warnings against seeking new regulations for the banking industry as a solution to problems.

They praised programmes created by Congress last year and renewed in early 2021 such as the Paycheck Protection Program that has funneled hundreds of billions in forgivable loans to small businesses. US banks helped distribute more than $700bn in loans under the programme through late May.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, MERIAM GEDEON CHARLES of Carmichael Road, P.O. Box CR-56890, Nassau, Bahamas, intend to change my name to MERIAM GEDEON MICHAEL. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.

THE TRIBUNE

Thursday, May 27, 2021, PAGE 13

NOTICE

NOTICE is hereby given that KENDAL MICHEL, of Murphy Town, Abaco, 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 27th day of May 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE NOTICE is hereby given that BARBARA MARY EIROA GOMEZ, of P.O. Box N266 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 20th day of May 2021 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 26 MAY 2021

BISX ALL SHARE INDEX:

CLOSE

CHANGE

1949.57

-0.01

%CHANGE

YTD

YTD%

0.00 -142.89

-6.83

(242) 323-2330 (242) 323-2320

BISX LISTED & TRADED SECURITIES 52WK HI 5.20 33.05 1.50 2.90 1.78 6.00 6.96 3.60 6.00 4.03 6.16 12.00 2.75 7.50 10.71 9.01 14.60 4.25 8.97 16.00

52WK LOW 3.13 22.65 1.46 1.62 1.44 5.00 6.00 2.70 4.25 2.75 5.00 9.75 2.10 4.90 9.50 8.00 13.00 3.42 8.15 15.20

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 0.90

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

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

LAST CLOSE 5.20 32.12 1.50 2.61 1.44 6.00 6.96 3.53 4.27 2.90 5.94 9.75 2.45 7.00 11.46 9.01 14.00 3.99 8.19 15.50

CLOSE 5.20 32.12 1.50 2.61 1.44 6.00 6.96 3.53 4.27 2.90 5.94 9.75 2.49 7.00 11.40 9.01 14.00 3.99 8.19 15.50

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

SYMBOL FBB22 BFHB

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGRS650227 BSBGR1271398 BSBGRS870288

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.58 100.00 100.86

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.88 100.00 100.86

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.30 0.00 0.00

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

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

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

52WK LOW 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00 100.88 100.00 100.66

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.88 100.00 100.66

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 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 FL BSBGR650227 BGRS FX BGR127139 BGRS FL BSBGR870288

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 0.04 0.00 (0.06) 0.00 0.00 0.00 0.00 0.00

VOLUME 173

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EPS$ 0.239 0.932 0.000 0.110 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

544

DIV$ 0.170 1.260 0.020 0.030 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

P/E 21.8 34.5 N/M N/M N/M N/M 18.9 -8.1 30.5 15.8 13.2 13.5 24.4 15.0 17.6 12.4 17.2 19.7 8.7 24.6

YIELD 3.27% 3.92% 1.33% 1.15% 0.00% 0.00% 3.74% 0.00% 0.00% 4.14% 3.70% 7.38% 17.43% 0.86% 2.88% 2.66% 3.86% 3.01% 2.44% 3.94%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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

INTEREST Prime + 1.75% 6.25%

19-Oct-2022 30-Sep-2025

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 4.66% 5.00% 4.33%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 6-Sep-2022 15-Jan-2039 26-Apr-2028

MATURITY

MUTUAL FUNDS 52WK HI 2.43 4.44 2.16 202.18 190.86 1.69 1.81 1.78 1.16 8.58 10.26 7.35 14.59 12.84 10.31 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.67 1.73 1.75 1.03 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 Financial Conservative Fund Leno Financial Aggressive Fund Leno Financial Balanced Fund Leno Financial Global 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 2.43 4.44 2.16 202.18 190.86 1.69 1.75 1.76 1.03 8.58 10.14 7.35 14.59 12.64 9.99 N/A 10.43 14.89

YTD% 12 MTH% 1.47% 4.26% 0.20% 0.87% 0.95% 2.82% 0.14% 5.02% 3.25% 31.13% 0.91% 0.68% -2.55% -3.02% -0.27% -0.27% -2.20% -7.62% 1.14% 4.22% 1.09% 3.04% 1.01% 4.65% 4.93% 42.27% -1.56% 0.80% -0.60% -4.90% N/A N/A 3.00% 25.60% 7.90% 48.70%

NAV Date

30-Apr-2021 30-Apr-2021 30-Apr-2021 31-Mar-2021 31-Mar-2021 30-Apr-2021 30-Apr-2021 30-Apr-2021 30-Apr-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 28-Mar-2021 31-Mar-2021 31-Mar-2021 31-Mar-2021

MARKET TERMS

BISX ALL SHARE INDEX - 19 Dec 02 = 1,000.00

YIELD - last 12 month dividends divided by closing price

52wk-Hi - Highest closing price in last 52 weeks

Bid $ - Buying price of Colina and Fidelity

52wk-Low - Lowest closing price in last 52 weeks

Ask $ - Selling price of Colina and fidelity

Previous Close - Previous day's weighted price for daily volume

Last Price - Last traded over-the-counter price

Today's Close - Current day's weighted price for daily volume

Weekly Vol. - Trading volume of the prior week

Change - Change in closing price from day to day

EPS $ - A company's reported earnings per share for the last 12 mths

Daily Vol. - Number of total shares traded today

NAV - Net Asset Value

DIV $ - Dividends per share paid in the last 12 months

N/M - Not Meaningful

P/E - Closing price divided by the last 12 month earnings

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

THE TRIBUNE

Thursday, May 27, 2021, PAGE 15

STOCKS CLOSE MODESTLY HIGHER AFTER CHOPPY DAY ON WALL STREET Associated Press

A CHOPPY day of trading on Wall Street ended with stocks closing higher yesterday, reversing much of the S&P 500’s modest pullback the day before.

The benchmark index ended just under 0.2% higher after wavering between small gains and losses. Retailers and other companies that rely on consumer spending made solid gains. Communication and financial stocks also helped lift the market. The S&P 500’s gains were tempered by declines in health care, technology and other stocks.

Smaller company stocks

continued to outgain the rest of the market as they’ve done all year. Treasury yields mostly edged higher.

Markets have been bumpy over the last few days as investors move past a stellar corporate earnings season and await additional clues on economic growth and inflation, which has been rising.

“That’s just going to be the state of the market environment for some time to come,” said Kristina Hooper, chief global market strategist at Invesco.

The S&P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 years

old yesterday, gained 10.59 points, or less than 0.1%, to 34,323.05. The blue-chip index swung between a gain of 97 points and a 41-point slide. The Nasdaq added 80.82 points, or 0.6%, to 13,738. The Russell 2000 index of smaller companies gained 43.52 points, or 2%, to 2,249.27.

The S&P 500 hit an alltime high on May 7th, but then fell for two straight weeks heading into this week. The index is on track for a gain this week of about 1%.

Investors bid up shares in several retailers that delivered strong quarterly report cards. Dick’s Sporting Goods jumped 16.9%

after reporting a surge in first-quarter sales and solid earnings as team sports returned. Urban Outfitters rose 10% and Abercrombie & Fitch climbed 7.8% on similarly strong financial results.

Retailers, hotels and cruise lines are poised for growth as more people get back to some semblance of normal with vaccinations increasing and the pandemic seemingly receding.

The next key economic update is set for Thursday, when the Commerce Department releases its latest GDP report for the first quarter. Economists are expecting a huge rebound in 2021 and results

from the beginning of the year will give Wall Street a clearer picture moving forward.

The growing economy has also raised inflation concerns, though analysts expect that much of the increase will be tied to economic growth and will be digestible. Concern centers around stronger inflation prompting governments and central banks to roll back economic stimulus and change course on interest rates. Federal Reserve officials have said that they see no need yet to change course.

Bond yields, which rose sharply earlier in the year, remained relatively steady.

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 92° F/33° C Low: 69° F/21° C

TAMPA

SATURDAY

SUNDAY

MONDAY

Nice with abundant sunshine

Partly cloudy

Mostly sunny and pleasant

Sunshine and nice

Sunny and pleasant

Rather cloudy

High: 84°

Low: 74°

High: 84° Low: 74°

High: 84° Low: 75°

High: 85° Low: 75°

High: 86° Low: 74°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

92° F

78° F

93°-78° F

92°-77° F

94°-78° F

94°-77° F

almanac

E

ABACO

S

N

High: 80° F/27° C Low: 74° F/23° C

4-8 knots

S

High: 88° F/31° C Low: 73° F/23° C

4-8 knots

FT. LAUDERDALE

FREEPORT

High: 85° F/29° C Low: 74° F/23° C

S

E

W

WEST PALM BEACH

E

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

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

W

uV inDex toDay

FRIDAY

W

N

| Go to AccuWeather.com

TONIGHT

High: 90° F/32° C Low: 75° F/24° C

High: 83° F/28° C Low: 71° F/22° C

MIAMI

High: 86° F/30° C Low: 74° F/23° C

4-8 knots

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 82° F/28° C Low .................................................... 71° F/22° C Normal high ....................................... 85° F/30° C Normal low ........................................ 72° F/22° C Last year’s high ................................. 86° F/30° C Last year’s low ................................... 81° F/27° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ................................................. 3.46” Normal year to date ..................................... 8.10”

ELEUTHERA

NASSAU

High: 84° F/29° C Low: 74° F/23° C

Forecasts and graphics provided by AccuWeather, Inc. ©2021

High: 81° F/27° C Low: 75° F/24° C

N

KEY WEST

High: 84° F/29° C Low: 77° F/25° C

High: 82° F/28° C Low: 75° F/24° 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

9:05 a.m.

9:37 p.m.

2.7 3.6

3:15 a.m. -0.7 3:11 p.m. -0.9

Friday

9:59 a.m.

10:30 p.m.

2.6 3.5

4:09 a.m. -0.6 4:04 p.m. -0.7

Saturday

10:55 a.m.

11:25 p.m.

2.5 3.3

5:03 a.m. -0.5 4:59 p.m. -0.5

Sunday

11:53 a.m.

-----

2.5 -----

5:59 a.m. -0.3 5:57 p.m. -0.2

Monday

12:22 a.m.

12:54 p.m.

3.1 2.4

6:56 a.m. -0.1 6:58 p.m. 0.1

Tuesday

1:19 a.m.

1:57 p.m.

2.9 2.3

7:54 a.m.

8:02 p.m.

0.0 0.3

Wednesday 2:18 a.m.

3:00 p.m.

2.7 2.4

8:51 a.m.

9:08 p.m.

0.2 0.5

sun anD moon Sunrise Sunset

6:21 a.m.

7:53 p.m.

Moonrise Moonset

9:37 p.m.

7:20 a.m.

Last

New

First

Full

Jun. 2

Jun. 10

Jun. 17

Jun. 24

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 82° F/28° C Low: 74° F/23° C

High: 82° F/28° C Low: 75° F/24° C

N

High: 83° F/28° C Low: 75° F/24° C

E

W S

LONG ISLAND

tracking map

High: 83° F/28° C Low: 76° F/24° C

6-12 knots

MAYAGUANA High: 83° F/28° C Low: 75° F/24° C

Shown is today’s weather. Temperatures

H

tiDes For nassau

CAT ISLAND

E

W

The yield on the ten-year Treasury rose to 1.58% from 1.56% from late on Tuesday.

“Investors need to stop worrying about short-term concerns around The Fed and inflation,” Hooper said.

“That’s really creating a lot of the churn we’re seeing.”

Online retail giant Amazon is buying MGM, the movie and TV studio behind James Bond, “Legally Blonde” and “Shark Tank”, with the aim of filling its video streaming service with more shows to watch. The announcement left the stock little changed.

Markets in Europe were mixed and markets in Asia were broadly higher.

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 82° F/28° C Low: 76° F/24° C

GREAT INAGUA High: 85° F/29° C Low: 77° F/25° C

N

N E

W

E

W

H

High: 83° F/28° C Low: 76° F/24° C

S

S

8-16 knots

8-16 knots

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

Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday: Today: Friday:

WINDS SE at 4-8 Knots SE at 4-8 Knots E at 6-12 Knots ESE at 6-12 Knots ENE at 6-12 Knots E at 6-12 Knots ENE at 8-16 Knots ENE at 7-14 Knots ENE at 6-12 Knots ESE at 6-12 Knots SSE at 4-8 Knots S at 6-12 Knots NE at 6-12 Knots E at 6-12 Knots NE at 8-16 Knots ENE at 7-14 Knots ENE at 7-14 Knots E at 7-14 Knots ENE at 7-14 Knots ENE at 7-14 Knots E at 6-12 Knots ESE at 6-12 Knots NE at 8-16 Knots E at 7-14 Knots NE at 6-12 Knots E at 6-12 Knots

WAVES 3-5 Feet 2-4 Feet 0-1 Feet 0-1 Feet 3-5 Feet 2-4 Feet 2-4 Feet 2-4 Feet 3-5 Feet 2-4 Feet 1-2 Feet 1-2 Feet 1-2 Feet 1-2 Feet 2-4 Feet 2-4 Feet 1-3 Feet 1-3 Feet 3-5 Feet 3-5 Feet 1-2 Feet 1-2 Feet 2-4 Feet 2-4 Feet 1-2 Feet 1-2 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 7 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. 79° F 80° F 81° F 82° F 82° F 83° F 82° F 82° F 79° F 80° F 81° F 82° F 80° F 81° F 82° F 82° F 80° F 81° F 80° F 80° F 79° F 80° F 81° F 81° F 80° F 81° F

PAGE 16, Thursday, May 27, 2021

THE TRIBUNE

ACTOR Daniel Craig poses for the media as he arrives for the German premiere of the James Bond movie “Spectre” in Berlin, Germany. Amazon is buying MGM, announced yesterday, the movie and TV studio behind James Bond, “Legally Blonde” and “Shark Tank”, with the hopes of filling its video streaming service with more stuff to watch.

Photo: Michael Sohn/AP

Amazon to buy MGM, studio behind James Bond and ‘Shark Tank’ NEW YORK Associated Press ONLINE shopping giant Amazon is buying MGM, the movie and TV studio behind James Bond, “Legally Blonde” and “Shark Tank”, with the hopes of filling its video streaming service with more stuff to watch.

Amazon is paying $8.45bn for MGM, making it the company’s secondlargest acquisition after it bought grocer Whole Foods for nearly $14bn in 2017.

The deal is the latest in the media industry that’s aimed at boosting streaming services to compete against Netflix and Disney+. AT&T and Discovery announced last week that they would combine media companies, creating a powerhouse that includes HGTV, CNN, Food Network and HBO. Amazon doesn’t say how many people watch its Prime Video streaming service, but more than 200 million people have access to it because they pay for Prime membership, which gives them faster shipping and other perks.

Amazon said Wednesday that it would use MGM’s vast library, which includes famous characters such as Rocky, RoboCop and Pink Panther, to create new movies and shows.

“It’s going to be a lot of fun work,” said Amazon founder Jeff Bezos, during the company’s shareholder meeting yesterday. “People who love stories are going to be the big beneficiaries.”

Sucharita Kodali, an e-commerce analyst at

Forrester Research Inc., said streaming companies need shows people can’t watch elsewhere in order to stand out and be competitive.

“There is an arms race to get what you can while the window is open,” she said.

Plus, the price tag is just a tiny fraction of Amazon’s valuation, which is nearing $2tn.

Known for its roaring lion logo, MGM is one of the oldest studios in Hollywood, founded in 1924 when films were still silent.

But its shine has faded considerably over the years.

In the mid-1980s, it sold much of its pre-1948 catalog, including “The Wizard of Oz” and “Gone with the Wind”, which is now owned

by Warner Bros. And its sprawling California lot was bought by Sony.

For much of the past decade, MGM juggled bankruptcy and a revolving door of owners while its new releases dwindled.

Long up for sale, MGM’s desirability was lessened, not just because of its partially auctioned-off library, but because its prized property — James Bond — isn’t owned outright.

MGM splits ownership of it with Barbara Broccoli and Michael G Wilson, who have ultimate control over the franchise. The release of the latest James Bond entry, “No Time to Die”, has been on hold through the pandemic, with a fall release now planned.

Its other upcoming movies include Paul Thomas Anderson’s next film, “Soggy Bottom”, starring Bradley Cooper;

Ridley Scott’s “House of Gucci”, with Lady Gaga and Adam Driver; and the upcoming Aretha Franklin biopic “Respect”, with Jennifer Hudson. Its library still includes more than 4,000 movies, including “Silence of the Lambs” and “Thelma & Louise”, and 17,000 TV shows, such as reality TV staples “Shark Tank” and “The Real Housewives of Beverly Hills”. Amazon will also get cable channel Epix out of the deal.

Amazon already has its own studio, but has had mixed results. Two of its shows, “The Marvelous Mrs. Maisel” and “Fleabag”, won best comedy series Emmys. Although it has won several Oscars, including most recently for “Sound of Metal”, many of its films have failed to click with audiences at the box office. Recently, Amazon has been spending on sports and splashy shows. It will stream “Thursday Night Football” next year and is producing a “Lord of the Rings” show, which reportedly cost $450m for its first season alone.

Seattle-based Amazon. com Inc declined to say when it expects the deal to be finalised. But when it does, it will make Amazon, already one of the most powerful and valuable companies in the world, even bigger. Regulators around the world are scrutinising Amazon’s business practices, specifically the way it looks at information from businesses that sell goods on its site and uses it to create its own Amazonbranded products.

A report by the House Judiciary Committee in October called for a possible breakup of Amazon and others, making it harder for them to buy other businesses and imposing new rules to safeguard competition. And the deal came a day after the company was hit with an antitrust lawsuit by the District of Columbia, accusing Amazon of creating policies that makes its sellers unable to offer lower prices for their products outside of Amazon. com, pushing up prices for consumers.

Yesterday, some lawmakers urged regulators to scrutinise the MGM deal closely.

“This is a major acquisition that has the potential to impact millions of consumers,” said Sen Amy Klobuchar, a Democrat from Minnesota. “The Department of Justice must conduct a thorough investigation to ensure that this deal won’t risk harming competition.”

Rep Ken Buck, a Republican from Colorado, said in a tweet that he is deeply concerned with the deal and that mergers and acquisitions involving monopolies need a greater level of scrutiny.

Amazon, founded in 1995 as an online bookstore, has become a $1.6tn behemoth that does a little bit of everything. It has a delivery business network that gets orders to people in two days or sooner; sells inhalers and insulin; has a cloud-computing business that powers the apps of Netflix and McDonald’s; and it has plans to send more than 3,200 satellites into space to beam internet service to Earth.