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THURSDAY, JUNE 16, 2022

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Tax hike measures branded ‘inevitable’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NEW and/or increased taxes are “inevitable somewhere down the road” as greater enforcement and collection efforts will be insufficient to meet The Bahamas’ revenue needs, an investment banker warned yesterday. David Slatter, RF Bank & Trust’s vice-president of investment management, told Tribune Business that reforms to the country’s tax structure appeared the “logical” outcome if the Government is to hit its target of increasing annual revenues by $1bn over the next three fiscal years. He asserted that the 2022-2023 Budget was “totally dependent” on the US economy’s continued growth feeding the Bahamian tourism industry’s revival and associated revenue receipts, and said this nation cannot solely rely on external forces to escape its fiscal crisis. Speaking after the Federal Reserve yesterday hiked short-term US interest rates by 0.75 percent, the greatest increase seen since 1994, Mr

• Banker: ‘Logical’ outcome ‘down the road’ • Budget ‘dependent’ on US tourism driver • But Fed rate hikes may slow its rebound Slatter told this newspaper that while such actions may not derail Bahamian tourism they could “slow” its post-COVID recovery by making Americans - who account for 90 percent of this nation’s visitor base - cut back on spending and travel. The US central bank’s benchmark federal funds rate now lies within a range of between 1.5 percent and 1.75 percent as it intensifies the fight against runaway inflation, and

BAHAMIAN insurers are seeking “an urgent meeting” with the Prime Minister before the week ends over VAT-related reforms that will potentially increase medical bills and treatment costs for thousands of Bahamians. Rhonda ChipmanJohnson, the Bahamas Insurance Association’s (BIA) co-ordinator, in a letter sent to Philip Davis QC yesterday said health insurers were especially anxious for resolution of the Government’s plan to halt them obtaining VAT deductions on claims payouts prior to the new fiscal year’s start on July 1. “To date, the matter of VAT deductions on taxable health insurance claim settlements has not been resolved,” she wrote. “We are cognisant of the fact that the Budget for the fiscal year 2022-2023 is still

under discussion and will be approved shortly. “Given the impact that the new ruling on VAT input deductions will have not only on the health insurance sector but, more importantly, the wider public who depend on insurance coverage in order to access proper healthcare in The Bahamas and abroad, we are requesting an urgent meeting with you before the end of this week if possible.” Tribune Business previously reported the health insurance industry’s fears that the Government’s stance may cause “additional hardship” for thousands of Bahamians who enjoy private medical insurance. Sandy Morley, the BIA vice-chairman, confirmed to that these consumers would “bear the brunt” of plans designed to stop healthcare insurers from reclaiming the VAT

SEE PAGE 6

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‘Christmas comes early’ for tourism with COVID easing • Industry hails entry test, Travel Visa elimination • Says it may now ‘exceed recovery expectation’ • Promotion Board chief adds: ‘We’re in the game’

DAVID SLATTER

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

he added of the Federal Reserve’s move: “It just adds to the need to rein in spending and to have a recovery in revenues to ensure our fiscal situation does not totally depend on the recovery in tourism. “The most recent Budget is about stimulating tourism, driving VAT revenues to meet obligations. It’s a Budget fully dependent on the US

TOURISM operators yesterday said “Christmas has come early” after the Government announced the elimination of COVID entry testing for vaccinated visitors and the Health Travel Visa with effect from this Sunday.

SEE PAGE 9

SEE PAGE 4

‘We won’t give shop Insurers seek ‘urgent’ PM meeting away for porridge’ on VAT reforms By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

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DPM aims to ‘double’ stopovers in 3 years

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE deputy prime minister yesterday pledged that the Davis administration will “not give the shop away to investors for a bowl of porridge” as he revealed it is presently reviewing the tax breaks granted to them. Chester Cooper, in his 2022-2023 Budget debate contribution in the House of

THE BAHAMAS is aiming to “double” stopover visitor numbers within the next three years as it bids to reverse its “shrinking” share of the Caribbean visitor market, the deputy prime minister revealed yesterday. Chester Cooper, in his contribution to the 20222023 Budget debate in the

SEE PAGE 7

CHESTER COOPER

ROBERT SANDS

House of Assembly, said this nation’s share of total Caribbean stopovers had fallen by 62 percent in percentage terms over the 23-year period to 2018 as its regional rivals invested heavily in expanding their tourism plant. “We’re going to focus on doubling the number of stopover visitors to The Bahamas in three years,” he told fellow MPs. “It sounds

SEE PAGE 8

PAGE 2, Thursday, June 16, 2022

THE TRIBUNE

SELF-INSPECTION KEY TO CONTROLLING RISKS By ANISHKA COLLIE CEO and principal consultant ATC Financial Advisors & Consultant TODAY’S ever-changing business environment requires companies to implement a culture of dynamic risk management through effective internal controls to ensure their objectives are achieved. Companies should continuously assess their risks, and the effectiveness of these controls, in mitigating those risks. To achieve this, companies can implement a Risk Control Self-Assessment (RCSA). This is an effective approach to identifying and managing areas of risk exposure, as well as highlighting potential opportunities. In simple terms, an RCSA involves a structured approach to documenting business objectives, risks and controls, and having operational management and staff assess the adequacy of controls. An RCSA is a technique that allows managers and work teams directly involved in business units, functions or processes to participate in assessing the company’s risk management and control processes. In its various formats, an RCSA can cover objectives, risks, controls and processes. Managers can use RCSA programmes to clarify business objectives, identify existing risks, monitor the effectiveness of controls, gauge performance and assess critical systems. The results should be evaluated

ANISHKA COLLIE by managers and used to continuously improve the company’s operations. Self-assessments do not eliminate the need for independent audits. Internal auditors can use RCSA programmes for gathering relevant information about risks and controls; for focusing audit work on high risk, unusual areas; and to forge greater collaboration with operating managers and work teams. Internal auditors, in a consulting role, often act as facilitators to help work teams assess risks and controls. The involvement of those performing the work in evaluating risks and controls used the company’s expertise, increases buy-in on any action items, and focuses efforts on important business activities. Other benefits of risk control self-assessments include creating a clear line of accountability for addressing risks, implementing controls and the creation of an entity with a lower risk profile.

PORT AUTHORITY READIES DRAINS FOR HURRICANES THE Grand Bahama Port Authority (GBPA) yesterday said it has invested $80,000 annually over the past 13 years to maintain Freeport’s drainage system in readiness for hurricane season. Freeport’s quasi-governmental authority, in a statement, said the city maintenance and management section (CMMS) of its Building and Development Services (BDS) department is this year also conducting extensive assessments to determine if further work is required to ensure this infrastructure functions properly. “Over the last 13 years, GBPA has installed more than 65 new drains and is committed to continuing to modify drains as needed,” said Troy McIntosh, GBPA’s deputy director and city manager. “GBPA has invested $80,000 annually throughout the period to ensure the reparation and servicing of existing storm drains, and installation of new drains to provide increased capacity in areas where flooding has occurred in the past.” Flooding has been a major concern for Grand Bahama residents, especially due to the experience with Hurricane Dorian in September

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2019. As a result, the GBPA said it remains committed to upkeep of the city’s drainage systems, including the removal of any debris or garbage accumulated in the drains to ensure they are storm-ready year-round. Predictions of an aboveaverage hurricane season for 2022 were reinforced by the early arrival of the season’s first tropical cyclone on Saturday, June 4. This enabled the GBPA to evaluate the overall performance of the city’s drainage, which Mr McIntosh said functioned at optimal performance. He added that once the heavy rainfall had ceased, the flooding subsided within two hours or less. “This past weekend was a great help for GBPA to see how well the existing drainage system operates, and identifying a few locations where there is room for improvement,” added Mr McIntosh. “During a heavy rainfall, it is possible for our drains to reach capacity, thus causing our roads to flood. “To determine if there is a cause for concern, we recommend that residents observe the drains for three to four hours after the rain has completely stopped to see whether the drain is performing as it should.” Mr McIntosh further advised the public to contact the BDS Department at 352-2000, or log a complaint in the Freeport Report App, to advise where water has not subsided within three to four hours so that further assessments can be conducted.

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Thursday, June 16, 2022, PAGE 3

$5bn investment approvals target By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Government is aiming to approve $5bn in investments by year-end, the deputy prime minister said yesterday, with half that sum having already been given the go-ahead. Chester Cooper, also minister for tourism, investments and aviation, told the House of Assembly during the Budget debate that some $2.5bn in investment projects have been approved since the Davis administration was elected to office in September 2021. While this figure was not broken down by project, the deputy prime minister did break it down into islands. “We have $700m in Exuma, $135m in Abaco, $137m in Eleuthera, $400m in Mayaguana and we have, in the pipeline, ready for presentation to the National Economic Council, a $250m project for south Long Island comprised of a boutique

resort and entertainment centre and water park,” Mr Cooper added. “I am particularly excited by the renewed interest I see in Long Island. We will work to shepherd these projects out of the pipeline. You know, my mother is from Deadman’s Cay, Long Island. I assure the people of Long Island that this counts for something. Their economy has suffered neglect and we will work with investors to drive economic activity.” Mr Cooper also pledged that the Government will continue with the airport revamp at Deadman’s Cay. Some observers yesterday viewed the renewed economic focus on Long Island as a sign that the Government is preparing for a potential by-election given the legal woes presently facing incumbent Opposition MP, Adrian Gibson. “We are also establishing a Social Responsibility Fund into which every investor will be encouraged to contribute at least 1 percent of the investment to social causes,

entrepreneurship and the Tourism Development Corporation,” Mr Cooper said yesterday. “We are also creating a Digital Assets/Crypto Desk to fast track and facilitate such industry to support the international buzz and energy already being spearheaded by our Prime Minister.” The deputy prime minister, meanwhile, yesterday said The Bahamas attracted close to 2m visitor arrivals for the four months to end-April 2022. Of the1.933m total arrivals for that period, just over 460,000 were stopovers. “In April alone we had 586,574 visitors by air and sea. Air and sea arrivals through April year-to-date were up by 946.8 percent over the same period of 2021,” he added. This is not unexpected given that the cruise industry was totally shutdown until June last year. And the gains have not surpassed pre-COVID 2019 arrivals numbers yet. Mr Cooper said: “From January to April 2022, there were 1,435m cruise arrivals. Over

436,000 of that number was in April alone.” Of those cruise arrivals, “390,241 were from the US, 15,093 were from Canada. We had 5,158 from the UK, followed by France, Germany, Jamaica, Brazil and Mexico... In 2020, the COVID-19 pandemic impacted stopover arrivals from European countries that were experiencing lockdowns and flight restrictions which extended into 2021. “In the first four months of 2022, however, stopover visitor arrivals were well on the way to recovery from this market. In 2020, the COVID-19 pandemic caused a decline in stopovers to the island but, by 2021, recovery of the Latin American market for The Bahamas had begun and this trend continued into the first four months of 2022. “Between January to April 2022, 51.4 percent of visitors from all regions were repeat visitors. During the first four months of the year, 69.5 of all stopover visitors came to The

Bahamas primarily for a vacation, with 13.2 percent coming for weddings and honeymoons, and 3.8 percent for business.” The Ministry of Tourism’s marketing efforts for Florida need to be enhanced, as Mr Cooper revealed that the word ‘Bahamas’ gets 500,000 hits from various cities in Florida. He said: “We plan to expand our reach in Florida by leveraging the traffic to Bahamas. com with display ad re-targeting technology. “This hyper-focused approach will allow us to serve up highly relevant ads to unique site visitors across multiple devices to reinforce our messaging. And we will establish expanded ad campaigns with travel partners like TripAdvisor, Kayak, and others to tap into their Florida audiences, so The Bahamas is well-positioned for potential travellers.” And Mr Cooper added: “What I found very interesting during my time in tourism is the fact is that we have tens of millions of people living in Florida 30

minutes away, and we get less than 500,000 tourists from this market in a good year. Florida has a population of 22m and is a tourism mecca, receiving 122.4m visitors in 2021. “In 2021, Miami International Airport handled 13.2m international travellers and is the hub for American Airlines, one of the largest producers of air seats to The Bahamas. Florida residents and the millions of visitors who vacation in Florida each year are key sources of growth to our destination. “Miami, Fort Lauderdale and Orlando are the major gateway cities for point-topoint travel. They are also strategic connecting hubs for European and Latin American stopover visitors to The Bahamas. While proximity is our competitive edge, we must fix the cost of getting there by air. We will capitalise on our proximity to this large source market by exploiting the lucrative boating, diving and private aviation segments.”

Pintard challenges Gov’t over BPL’s fuel hedging By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Opposition’s leader yesterday challenged the Prime Minister and his administration to clarify whether Bahamas Power & Light’s (BPL) fuel hedging initiative will be renewed given that the present structure is set to expire at month’s end. Michael Pintard, also Marco City’s MP, sought to use his Budget debate contribution in the House of Assembly to call out Philip Davis QC and the Government, and put him on the spot, by raising multiple questions concerning BPL and the National Insurance Board (NIB). Besides the ongoing fuel hedging controversy, Mr Pintard also asked the Prime Minister whether his administration - and BPL - had picked up its predecessor’s negotiations with Shell North America for the proposed liquefied natural gas (LNG) regasification/storage terminal at Clifton Pier and the utility’s proposed hand-over

MICHAEL PINTARD of generation to the global energy giant. And he also asked Mr Davis to clarify whether an increase in NIB contribution rates will eventually be forthcoming, noting that the Prime Minister had pushed this down the road after his minster of state responsible for the social security system, Myles Laroda, said a rise was vital to ensure its survival. Mr Davis, though, did not take the bait, and was exiting the House chamber when Mr Pintard raised his questions. The Opposition leader again returned to the charge that the Government, by failing to execute the necessary hedging trades when they came

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due at end-September and December 2021, had cost BPL taxpayers some $50m through increased fuel costs. “This administration claims that it wishes to save the Bahamian people money. But yet BPL is presently experiencing expenses. That is due to the failure of this administration to continue to execute the hedge that was put in place by the Free National Movement,” Mr Pintard said. “We locked in the price per kilowatt hour to

somewhere around 10.5 cents per kilowatt hour (KwH), and the failure to lock in the price that we had on the global market and failure to execute those trades - resulted in the Board, through its chairman [Pedro Rolle], reaching the point where they had to pass through the additional costs to the consumer. I think was something around 3.2 cents (per KwH).” BPL’s fuel hedge was implemented in summer 2020 at COVID-19’s peak. The present structure is due to expire at month’s end,

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and the Government has given no indication as to whether it will be renewed and a new hedge put in place. However, some $29m worth of spending has been budgeted for the upcoming 2022-2023 fiscal year to cover what is described as “finance charges (hedging charges)”. Given the increase in global oil price volatility, which yesterday left per barrel prices on the West Texas Intermediate and Brent Crude indices trading at $119 and $120.4, respectively, the fuel charge

component of BPL bills will almost inevitably increase regardless of whether a new hedging structure is put in place. However, Mr Pintard yesterday argued that the impact of rising fuel costs has been exacerbated by the Government’s failure to execute the hedging strategy. As a result, he voiced fears that the total electricity bills faced by consumers and households are set to soar over the August/September period when they traditionally peak due to the summer months.

PAGE 4, Thursday, June 16, 2022

THE TRIBUNE

‘CHRISTMAS COMES EARLY’ FOR TOURISM WITH COVID EASING FROM PAGE ONE

Robert Sands, the Bahamas Hotel and Tourism Association’s (BHTA) president, told Tribune Business that the Davis administration’s moves place the industry in a position where it “may even exceed our expectations” for a postpandemic recovery now that the greatest impediments to visiting this nation have been removed. Describing tourism stakeholders as “ecstatic” over the twin announcements, he added that they now placed The Bahamas on a “competitive level playing field” with rival Caribbean destinations - many of whom have long since eliminated their own COVID entry testing protocols and equivalent of the Health Travel Visa. “It puts us on a level playing field, and puts us on a path for the sustained recovery of our industry that may even exceed our expectations. Christmas has come early,” Mr Sands told this newspaper. “What this has done is eliminate all the inhibitors to growth. It puts us on a competitive level playing field. The Bahamas is just poised for growth. This is excellent news for the industry and The Bahamas; very positive and welcome news.” Asked how great a boost this latest COVID easing may have for The Bahamas’ visitor numbers, Mr Sands replied: “It’ll be difficult

to put an an assessment on that at this point in time, but certainly the value it creates in eliminating these additional costs will go a long way with the decisionmaking process and interest in The Bahamas.” Kerry Fountain, the Bahamas Out Islands Promotion Board’s executive director, told Tribune Business that as a result of the COVID-related adjustments this nation is “in the game” when it comes to further increasing its share of the tourism business. “Amen, amen. Beautiful,” he responded when informed by this newspaper that COVID entry testing requirements for vaccinated travellers will be ended with effect from Sunday, June 19. “It removes the friction and also lowers the cost, and as soon as we do that it makes it easier for the tourist to come to The Bahamas. They will start to come in the numbers we want. “It allows us, and I don’t want to use the word salvage, because July is not looking bad at all, but it allows what is looking good to become better. We’re competitive, and removing the friction and lowering the cost, to get to The Bahamas and that’s certainly welcome news.” Mr Fountain said the Bahamas Out Island Promotion Board’s hotel members were “excited” when news filtered through

at their morning meeting yesterday that the Government was eliminating the Health Travel Visa with effect from 12.01am on Sunday, June 19. However, that was only viewed as “step one”, as the Family Island hotels were eager for the Government to “go ahead” and end COVID entry testing for vaccinated visitors. The Davis administration duly obliged yesterday afternoon, and Mr Fountain added: “Now we’ve done that we’re in the game. We’re in the game.” The BHTA, in a statement, hailed the “swift and decisive move to eradicate the Bahamas’ Travel Health Visa and the underlying testing requirements in tandem”. It added: “The move to eradicate both the Bahamas Travel Health Visa and the testing requirements is a prime example of the respective government ministries working in concert, effectively and efficiently, to ensure The Bahamas is indeed ‘open for business’. “The announcement to remove both friction points highlights the synchronistic approach by the respective government ministries and their ability to work together, alongside private sector tourism stakeholders, to strike a balance between the tourism economy and the health and well-being of Bahamian citizens, residents and visitors.

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This is without a doubt excellent news for our tourism industry and our nation as a whole. “This move will not only position us to be on par with our Caribbean competitors and other global jurisdictions including the US, as it pertains to entry protocols, but it will put The Bahamas on firm footing to continue, if not accelerate, the momentum of our upward-moving trajectory of success. The Bahamas is well positioned to exceed expectations for the full and sustained recovery of our tourism industry. We are ecstatic about this announcement by the Government.” The Government unveiled the twin COVID easings in a slightly peculiar and confusing way yesterday by making separate announcements. Chester Cooper, deputy prime minister, announced the Health Travel Visa’s end during his Budget debate presentation in the House of Assembly yesterday morning. However, under questioning from Kwasi Thompson, Opposition MP for east Grand Bahama, he said “we are not eliminating testing” for persons to come into The Bahamas. The Government confirmed this position in a subsequent release, which read: “Deputy Prime Minister Cooper also stated, however, that COVID-19 testing remains in effect prior to entering The Bahamas.” This position, though, changed in a matter of mere hours when Dr Michael Darville, minister of health and wellness, confirmed in his own Budget presentation that the Government was indeed eliminating the COVID entry testing for international travellers. It is unclear why the announcement of the two COVID-related relaxations could not be made together, although it could be argued that they fell under separate ministerial portfolios. Mr Cooper, in ending the Health Travel Visa that was introduced by the Minnis administration as a means to verify whether visitors were compliant with The Bahamas’ COVID entry and testing protocols, said this nation was “still not quite there yet” in returning to pre-pandemic visitor levels. “The rules regarding air travel and the changing guidelines have reshaped the airline landscape. And we have had to adjust. We will continue to do so. Our goal is to encourage more flights in our key markets so that we can get more people here safely, quickly and affordably, whilst protecting public health,” Mr Cooper, also minister of

tourism, investments and aviation, added. “Yes, I support the review of travel testing rules. We must continue to reduce the friction as we ramp up for the summer months. Therefore I am pleased to announce the Cabinet of The Bahamas has approved the elimination of the Bahamas Travel Health Visa. This is going to take effect at 12.01am on Sunday, just in time for Father’s Day.” Mr Thompson later questioned Mr Cooper on whether the Health Travel Visa’s elimination meant COVID testing to enter The Bahamas was ending, and if such an action was supported by the medical advisers to the Government. The deputy prime minister, in reply, said: “I announced the elimination of the Travel Health Visa, not the elimination of testing. “As the member would already be aware, Bahamians do not require a Travel Visa but they are still asked at the counter, at the airline, to demonstrate they are COVID negative. This is going to continue.” While acknowledging that Dr Darville could speak to the testing issue, Mr Cooper added: “My intervention was simply to say that we are eliminating one of the pain points, one of the friction points for travellers to our country to make it easier, make it less expensive, and more convenient.” He reiterated that the Health Travel Visa is being eliminated for all visitors coming to The Bahamas, and replied “yes” when asked by Mr Thompson if the COVID testing requirement remains in place. “The answer is we are not eliminating testing. As I have indicated before, everyone travelling to our country until it is changed and announced by the Government of The Bahamas has to demonstrate they are COVID negative,” Mr Cooper said. “Let me be clear. We are eliminating one of the friction pain points ahead of the peak summer season so we are able to ensure we get the numbers we need for our tourism product and our economy, and we are satisfied and comfortable this is the right thing to do at the right time.” Mr Cooper’s COVID testing comments were contradicted and overturned within hours by Dr Darville. He told the House of Assembly: “Follow up meetings at the Summit of the Americas in Los Angeles helped to solidify many plans, inclusive of the US CDC (Centres for Disease Control and Prevention) announcement on the removal of the COVID

testing requirements inbound to American citizens as of Monday, June 13, 2022. “This is good news for our tourism sector and begs the question: When will The Bahamas follow suit and revisit the testing and mask mandate currently in place in our country?” “These questions have been addressed by the EOC (Emergency Operations Committee) and my ministry,” Dr Darville added, “and I am pleased to report, inclusive of the removal of the Travel Health Visa....effective June 19, 2022, at 12.01am the Ministry of Health and Wellness will remove the testing requirements for all vaccinated persons entering The Bahamas.” “This decision is based on science and recommendations from both local and regional epidemiologists. The decision to remove the testing requirements at our borders for vaccinated persons is consistent with global recommendations. This decision is consistent with US CDC guidelines, which came into effect Monday of this week.” The Bahamas was always likely to follow the US lead as soon as this nation’s major source market altered its COVID entry requirements. The regime unveiled yesterday matches the US version almost exactly, with only unvaccinated visitors now having to produce a negative COVID PCR test taken within 72 hours of travelling to this nation. The requirement for vaccinated visitors to produce a rapid antigen test within the same time period now falls away. The Bahamian tourism industry has been agitating heavily for the relaxations unveiled yesterday, especially given that they eliminate the bureaucracy/red tape associated with post-COVID travel as well as significantly lowering the cost for vaccinated visitors. Major US source markets have seen a reduction in COVID testing availability and an end to free tests, while insurance is often not covering these costs. The reforms mean that the $40 Health Travel Visa fee is now eliminated, potentially saving a family of four $160. And, when added to testing costs now exceeding $100 in many locations, the savings for such a family could amount to several hundred dollars on the cost of a vacation - possibly even as high as $700.

THE TRIBUNE

Thursday, June 16, 2022, PAGE 5

Cruise port receives 20,000 on cruise restart anniversary NASSAU Cruise Port yesterday said it welcomed more than 20,000 passengers on Sunday as it celebrated the first anniversary of the industry’s resumption following the COVID-19 pandemic. One year after Royal Caribbean’s Adventure of the Seas kick-started the cruise industry’s return by home porting in Nassau, the port said in a statement that it had welcomed six vessels - Norwegian Sky, Carnival Conquest, Carnival Magic, Carnival Freedom and two Royal Caribbean vessels, Freedom of the Seas and Independence of the Seas - and their 20,210 passengers on June 12.

Mike Maura, the Nassau Cruise Port’s chief executive, said: “We could not have asked for a better way to commemorate the restart of cruising than a six-ship day with over 20,000 passengers in port. We have welcomed 553 calls so far this year, which is 145 calls more than we received from June to December 2021. “This puts us on a healthy track to finish the year with over 1,100 calls. As of last Sunday, more than 1.8m passengers have visited Nassau since June 2021 and the numbers continue to climb.” In 2023, Nassau Cruise Port is on target to welcome more than 4m passengers – 200,000 more than the 3.8m who visited in 2019.

“We are extremely grateful to our employees, cruise line partners, the Ministry of Tourism and other government supporters, port stakeholders and, of course, the guests who have helped us get to this point,” Mr Maura added. “We have come a long way since March 2020, and we have much to celebrate as we complete the reimagining of the waterfront and bring even more passengers to little Nassau. As those who live and work in the area can see, we are making excellent progress on the construction with the Arrivals Terminal and Junkanoo Museum steadily rising above the port.

Crowd funder teams with Fintech TV hub A BAHAMIAN crowdfunding platform has partnered with a media organisation to create a Caribbean television arm focused on digital assets and blockchain technology. ArawakX, in a statement, said it has signed an agreement with FINTECH.TV, the global media platform that focuses on blockchain, Fintech (financial technology) and sustainable development goals (SDGs), to create a Caribbean FINTECH.TV bureau. The media content hub’s development will allow viewers to better understand companies and fintech developments in The Bahamas and wider Caribbean. “The Caribbean region continues to make headlines in the crypto/digital asset space, and has proven to be a leader in the sector. This is why so many

companies have relocated to the area,” said Vincent Molinari, founder and chief executive of Fintech TV. “The recently held FTX/ SALT Crypto Bahamas conference, which we covered on FINTECH.TV, highlights how many companies and stakeholders are operating in the region and whose stories may be of interest to our viewing audience.” “At the conference, ArawakX was able to collaborate with FINTECH. TV team and land several significant interviews, including the Prime Minister of The Bahamas and the Attorney General,” said D’Arcy Rahming Jr, chief technology officer and co-founder of ArawakX, who was also among the hosts for the platform during the conference. FINTECH.TV will begin constructing its Caribbean

studio, based at ArawakX, with plans to start broadcasting this summer. It has a studio presence at major international exchanges, including the New York Stock Exchange, NASDAQ and the London Stock Exchange. Mr Rahming Jr added: “Platforms such as ArawakX will provide the future of investing within the Pan-Caribbean region, and FINTECH.TV the needed media presence, paving the way for the development and revolution of economic diversity and prosperity throughout the region. “This is a unique opportunity for the global village to become aware of new investment opportunities through FINTECH.TV, and to fund new and innovative companies that provide new solutions to worldwide issues.”

PATRICIA WU, FINTECH.TV anchor; Troy Sampson, FINTECH.TV; Prime Minister Philip Davis; Vince Molanari, FINTECH.TV; Fenerin Hanna, special projects director, ArawakX; Attorney General, Ryan Pinder; D’Arcy Rahming, ArawakX.

EXCITED cruise passengers celebrate the first six-ship day in Nassau in March 2022 with Bahamian entertainer Angelica Moncur. On Sunday, June 12, 2022, Nassau Cruise Port welcomed over 20,000 passengers and marked one year since the return of the cruise industry to Nassau.

“Our general contractor has already laid the foundations for the new authentically Bahamian market boutiques for 50 local small retailers and other parts of the Port Plaza that will feature uniquely Bahamian businesses. Downtown Nassau is still recovering from the COVID shut down, but most of the stores have reopened,” Mr Maura continued. “Hundreds of people are back at work, and on a sixship day like last Sunday, the downtown core is as busy and vibrant as ever. With the promise of our project and other potential activities for downtown on the horizon, our future remains extremely bright in Nassau.”

PAGE 6, Thursday, June 16, 2022

THE TRIBUNE

INSURERS SEEK ‘URGENT’ PM MEETING ON VAT REFORMS FROM PAGE ONE portion of medical claims payouts. At present, the insurance industry can deduct, or offset, the VAT portion of patient care bills submitted to it by doctors, hospitals and other medical facilities against what it pays to the Government from the 10 percent levy imposed on client premiums. However, Mr Morley said the Ministry of Finance and Department of Inland Revenue - with effect from July 1, 2022 - want to change this treatment such that health insurers are no longer able to deduct/offset the VAT charged on their clients’ medical bills against the taxes collected on the premium. With the industry no longer able to treat medical bill VAT as an ‘input’ deduction, the BIA vice-chair warned that consumers will “ultimately” pay the price through having to absorb the levy on their patient care expenses - something that will effectively increase health treatment costs by 10 percent at a

time when Bahamians are grappling with soaring inflation and the continuing fall-out from the ongoing COVID-pandemic. Given that some medical costs can be substantial, reaching into the hundreds of thousands and even millions of dollars, the potential revenue boost for the Government could well be significant. Yet, if implemented, the increased cost could be just as impactful for both individuals and employees who presently enjoy private health insurance under their company’s group policy, potentially making quality healthcare less affordable and accessible when COVID-19 remains a threat. Should the revised VAT treatment become law, Mr Morley said at the time that insurers would likely be forced to alter their pricing while providers of medical care would need to adjust their services. Tribune Business understands that the Ministry of Finance and Department of Inland Revenue (DIR) have taken the position that

medical bill payments are made on behalf of the enduser, or insured consumer, and as such should be treated as a VAT-able activity rather than deducted by insurers from the taxes they collect on the health insurance policy’s premium. “The industry is concerned about this, we most definitely are in opposition to this, but in meetings with the Department of Inland Revenue’s director [Ms Strachan] and the financial secretary [Simon Wilson] said it’s not an industry issue. It’s an issue that is a lot broader than this. It impacts the broader population, and would only cause for additional hardship to Bahamians at a time when Bahamians need to be supported. That’s the real issue and message we reiterated to them,” Mr Morley said previously. Meanwhile, Ms Chipman-Johnson said Bahamian insurers were seeking further clarity over the Government’s plans to end the 3 percent tax on premiums and switch to a Business Licence fee

calculated as 2.25 percent of “turnover”. “In addition, we would like to discuss the Budget communication regarding the changes in the tax structure for the insurance sector. We have met with the Insurance Commission with respect to this matter, but there is still a need for further clarification of taxes. Insurers are also concerned about the short time before the implementation of the new tax regime,” she said. The letter was also copied to Senator Michael Halkitis, minister of economic affairs, and Simon Wilson, the Ministry of Finance’s financial secretary, as well as Michele Fields, the Insurance Commission head. Timothy Ingraham, Summit Insurance Company’s managing director, told Tribune Business recently on the issue that the definition of “turnover” will be critical to how the tax is calculated, and its impact on the industry. He said: “We’re still in the process of evaluating that and trying to determine what exactly

will happen. Right now we’re trying to speak to the tax authority to get a full understanding of what they are proposing before we come to any conclusions. “Obviously one thing at the moment is that premium tax is based on

premium, and what is your definition of turnover? That we have to get clarification on. The immediate thing is to try and get a deeper understanding of what is being proposed before we come to any significant conclusions on it.”

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THE TRIBUNE

Thursday, June 16, 2022, PAGE 7

‘WE WON’T GIVE SHOP AWAY FOR PORRIDGE’ FROM PAGE ONE Assembly, disclosed that the Government is seeking to balance “rationalising” the multiple incentive regimes with maintaining The Bahamas’ competitiveness as a destination attractive to foreign direct investment (FDI). “We are doing a review of concessions being offered for investment to see where we can rationalise them whilst ensuring that we are competitive. We must not give away the shop to investors for a bowl of porridge.” Mr Cooper repeated the “bowl of porridge” phrase twice for emphasis, even seeking to tease Kwasi Thompson, Opposition MP for east Grand Bahama, by tying this to the controversial Oban oil refinery deal under the Minnis administration. Mr Cooper, also minister of tourism, investments and aviation, also unveiled what he branded a Shovel Ready Projects Initiative (SRPI) where the Government will seek to match fresh, incoming investors with previous FDI projects that failed or were shuttered under previous owners. He mentioned numerous Grand Bahama developments, such as Ginn sur mer, the Royal Oasis (Harcourt Developments), the Xanadu and International Bazaar as falling into this category. “All large and small resorts and projects that were not completed or failed, we will match with appropriate investors. This live database will present these projects with all approvals subject

only to financing and due diligence on the investor,” Mr Cooper said. Tribune Business sources yesterday said Mr Cooper and the Government were serious about this effort, which appears to be modelled on a similar initiative employed by Jamaica’s investment promotions agency, JAMPRO. They revealed that “interrogatories” have been sent to investors behind stalled and/ or incomplete projects, and their Bahamian representatives to learn what their intentions are, while talks have been held with local realtors to find potential buyers. “He and a team are doing an audit of all the files and project proposals that have been put in to find out what investors are doing, whether their projects are up for sale and what they intend to do,” one contact, speaking on condition of anonymity, revealed. “He’s quietly been asking round for buyers for these projects, and met with people in real estate to see what they can do. “What they are trying to do is something that should have been done a long time ago.” The Government is trying to “pre-package” existing projects that can be matched with potential investors in the same manner as JAMPRO. Once the investors is determined to be credible and reputable, has the necessary financing and complies with the rules and regulations, they receive all the necessary permits and approvals to proceed within 45 days.

“In terms of investment, which goes hand in hand with tourism, we have already restructured the National Economic Council. This has already reaped significant results,” Mr Cooper said yesterday. “We have also already started the transformation of the Bahamas Investment Authority (BIA)” into the Bahamian version of JAMPRO. “We’re restructuring it by revamping the organisational structure for swift and transparent investment approvals and investment promotion,” he added of the Bahamas Investment Authority. “The finished product will be called InvestBahamas. We are looking at that launching in September of this year. “As we speak, we are working to eliminate the BIA backlog and establish a digital portal for lawyers and investors to track their investment status. We have seen an encouraging level of serious enquiries in various industries: Tourism, marinas, logistics, renewable energy, maritime, dry dock and ship repairs and agri-business.” Using the 60 percent decline in foreign direct investment (FDI) inflows into The Bahamas in 2021, as measured by a United Nations (UN) agency, to blast the former Minnis administration, Mr Cooper added: “It showed that FDI inflows for 2021 fell 60 percent to $360m, the lowest level in five years. “This is a clear indicator that the world had lost confidence in the FNM government, or that its policymakers showed little focus or frankly did not understand the significance of FDI or simply did not know what they were doing. Or all of the above.”

EBAJ-iA. i,.:

SECURITIES COMMISSION OF THE BAHAMAS JOB OPPORTUNITIES The Securities Commission of The Bahamas, a statutory agency responsible for the oversight, supervision

and regulation of the Investment Funds, Securities and Capital Markets, in or from The Bahamas, as well

as the supervision of Financial and Corporate Service Providers, invites applications from qualified

individuals to fill the following positions:

SENIOR OFFICER- EXAMINATIONS DEPARTMENT OFFICER- EXAMINATIONS DEPARTMENT APPLICATIONS:

Full details of the job opportunities, guidelines for the submission of applications and general information

about the Securities Commission of The Bahamas may be obtained from the Commission's website at

www.scb.gov.bs under Career Opportunities. The closing date for applications is June 25, 2022.

US sending $1 billion more military aid to outgunned Ukraine By LOLITA C. BALDOR AND MIKE CORDER Associated Press THE U.S. announced it will send an additional $1 billion in military aid to Ukraine, as America and its allies provide longer-range weapons they say can make a difference in a fight where Ukrainian forces are outnumbered and outgunned by their Russian invaders. President Joe Biden and his top national security leaders said Wednesday the U.S. is moving as fast as possible to get critical weapons to the fight, even as Ukrainian officials protest that they need more, faster, in order to survive. The latest package, the U.S. said, includes antiship missile launchers, howitzers and more rounds

for the High Mobility Artillery Rocket Systems (HIMARS) that U.S. forces are training Ukrainian troops on now. All are key weapons systems that Ukrainian leaders have urgently requested as they battle to stall Russia's slow but steady march to conquer the eastern Donbas region. "Gen. Milley and I have been in a number of fights. And when you're in a fight, you can never get enough," Defense Secretary Lloyd Austin said at a press conference in Brussels, referring to Gen. Mark Milley, chairman of the Joint Chiefs of Staff. "I certainly understand where the Ukrainians are coming from, and we're gonna fight hard to give them everything they need."

The HIMARS and antiship systems are the kinds of longer range capabilities that over time can make a difference in the fight, Milley said. He said Ukraine will have trained HIMARS crews in the fight in a few weeks. "If they use the weapon properly and it's employed properly, they ought to be able to take out a significant amount of targets and that will make a difference," he said. But he also noted that the numbers clearly favor the Russians. "In terms of artillery, they do outnumber, they out-gun and out-range" the Ukrainian forces. The aid is the largest single tranche of weapons and equipment since the war began.

PAGE 8, Thursday, June 16, 2022

DPM AIMS TO ‘DOUBLE’ STOPOVERS IN 3 YEARS FROM PAGE ONE

aggressive but, simply put, they spend more [than other tourists]. To do this, we need more airports, we need more flights, and we need more rooms.

“We get less of the market share in Caribbean tourism than we did 20 years ago. Compared to our counterparts in the Caribbean, we are losing ground. In 1995 we had over 13 percent of Caribbean arrivals, but only five percent in 2018. In this

regard, we have become somewhat of a victim of our own success in that regional competitors have made huge investments in tourism after seeing our growth. “We plan to reverse the trend of shrinking Caribbean market share in the

next five years.” Mr Cooper did not indicate whether he is using the record 1.8m stopover visitors this nation attracted pre-COVID in 2019, or the 886,610 landbased arrivals from 2021, as the benchmark for “doubling” this number. To reverse The Bahamas’ declining market share, he said the country will promote event and entertainment-based attractions through enhanced marketing, together with a focus on authentic and multi-island experiences. But, while pledging “to increase The Bahamas’ visibility and ability to capture the attention of new and past visitors”, the strategy unveiled by Mr Cooper did not detail specifics. However, he acknowledged the clear need for The Bahamas to consistently achieve higher economic growth rates of 5 percent or more per annum if this nation is to escape its post-COVID fiscal crisis and provide jobs for an expanding workforce that swells annually when several thousand school leavers join its ranks every June. “We recognise that foreign direct investment (FDI) continues to be the fastest way to grow our economy. We need to find a way to grow our economy consistently by at least 5 percent per annum to generate the revenues and jobs we need to support our economy and our people, including thousands of students graduating from high school this month,” Mr Cooper said. Turning to the revival of downtown Nassau, something that has been awaited for more than three decades, he added that “the status quo” simply cannot remain and, while investment incentives will be offered to property owners and businesses in the area, “there will be consequences” for those that fail to live up to their

THE TRIBUNE

CHESTER COOPER obligations or fail to fix their rundown properties. The first such dilapidated building has already been torn down on Cumberland Street, and there are “three more demolitions in sight”. Mr Cooper continued: “We’re working with the Attorney General’s Office and the Ministry of Works on legislation to manage the city. One thing is certain: The status quo will not remain. There will be incentives, but there will be consequences. We ask you for credible investment downtown.” The deputy prime minister added that Bahamasair, the national flag carrier, has consumed some $150m in taxpayer subsidies to keep it in the air over the past five years. Noting that it will begin service from Charlotte, North Carolina, to Nassau and Freeport on November 10, Mr Cooper said the Government would employ the airline as part of the tourism product to open new routes/markets and bring visitors here. “We are using Bahamasair strategically,” he explained. “Over the last five years we have provided subventions to Bahamasair in the region of $150m,

and we must fix this. In the interim, we are going to change the way that we look at this. We’re going to look at it as an investment in tourism. “We are going to ensure, if we are there for Bahamasair, Bahamasair is going to be there for us. We are going to ensure we get value for money. We’re going to use the economic benefit of investment in Bahamasair, and we’re going to heads to put in beds. That’s what we’re going to do.” Alluding to the inflation challenges facing The Bahamas and the world economy, Mr Cooper said: “If there is one thing that keeps me up at night it is the increasing prices as being experienced in the rest of the world. The supply chain issues brought on by COVID and the challenges being wrought by the war in Ukraine continue to present this challenge. “With inflation and fuel costs rising, travel has become more expensive, but so far it hasn’t proven to be a great detractor when stacked up against still pent up demand.”

THE TRIBUNE

TAX HIKE MEASURES BRANDED ‘INEVITABLE’ FROM PAGE ONE economy feeding into our tourism sector.” The Government is projecting that VAT revenues will increase by 52.4 percent yearover-year in 2022-2023 to $1.412bn, an almost $500m increase on the prior year’s $915.988m. The Davis administration is projecting a $1bn revenue increase over the next three fiscal years, growing its income from $2.455bn in this year’s Budget to $3.539bn in 2024-2025. The post-COVID reopening and recovery is expected to generate a $537m yearover-year increase in revenue during 2021-2022 compared to the prior year’s $1.909bn, and a further $346.5m increase is projected in the upcoming 2022-2023 fiscal year. The likes of Moody’s, the international credit rating agency, international capital markets participants and the political Opposition have all argued that such revenue projections are too aggressive to the point of being “unrealistic” amid multiple post-COVID uncertainties. However, the Davis administration has fiercely defended its forecasts and pointed to the recently “oversubscribed” $385m bond issue as a signal it still retains investor and creditor confidence. Mr Slatter, though, noted that the unsecured Series B portion of that bond carried a 9 percent interest coupon - a rate more than two percentage points higher than that attached to previous Bahamas sovereign bond issues. “It’s pricey and not sustainable in the long run, so we have to make some changes,” he told Tribune Business. “Our view is that it’s inevitable somewhere down the road that there will be an increase in taxation. I haven’t heard anything to support that, but it seems logical that they have to raise taxation.... Something has to give at some point. The Government is attempting to collect all the revenues due to it, as they should be doing, but that will not be sufficient going

forward so at some point there has to be a change in the taxation structure of the country. “The further you kick the can down the road, the longer you wait to make changes, makes something that could be quick and easy much more complicated.” The Davis administration’s 2022-2023 Budget relies exclusively on economic growth, and an increased volume of VAT revenuegenerating transactions, coupled with a crackdown on tax delinquents via greater enforcement and compliance, to hit its revenue targets. The Prime Minister himself has repeatedly said new and/or increased taxes are the “lazy way out”, and that such measures will only be a last resort if all else fails. The Government’s strategy appears to be to buy time, and hold off on any new taxation measures as long as possible, in order that the economy, businesses and households can recover from COVID-19. However, sources that have privately spoken to Tribune Business have argued that there is at least a $500m ‘gap’ between the Government’s mediumterm revenue targets and what it will generate from faster economic growth and compliance that will have to be filled by income from new and/or increased taxes. Mr Slatter said the options available to The Bahamas were to raise existing tax rates, such as that for VAT, or turn to more progressive levies such as a payroll tax or personal and/or corporate income tax. The first two, he suggested, will be easier to implement while the latter will be more complex administratively. As for the Federal Reserve’s US rate hike, the RF Bank & Trust chief said this had largely been expected and priced in by the global capital markets. US short-term interest rates are expected to rise further to at least 3 percent by year-end 2022, raising the cost of credit in a bid to dampen inflation, which has in turn raised fears that the

economy upon which The Bahamas most depends is heading for a recession. Some have even suggested that the US faces a repeat of the 1970s stagflation, with rising unemployment and prices at the same time. However, Mr Slatter said that while there were forecasts of a US recession between now and year-end 2023, the contraction was not expected to last long or be severe. “There is the risk the tourism recovery we’re experiencing slows, but we have the benefit of our location, short flying time and the cost of the vacation is not excessive,” he told this newspaper. “That’s the main risk; the wealth effect of a stock market decline and slowdown of creation of jobs in the US spills over into our tourism industry and economy.” Mr Slatter, though, voiced optimism that current levels of foreign direct investment (FDI) will also help insulate The Bahamas against any tourism slowdown as a result of US economic problems. And he added: “I don’t think there’s a tremendous risk of a major shock in tourism; maybe the rate of recovery slows.” And, given that The Bahamas’ imports most of its inflation from its major trading partner, the US, any Federal Reserve success in bringing prices down will also ultimately benefit consumers and the economy here. Suggesting that inflation may ease to 3-4 percent if the US rate hikes and other measures work, Mr Slatter said the major factor outside anyone’s control remains global oil prices. “From a Bahamas standpoint, it’s good to see the Federal Reserve taking it seriously. Hopefully they get inflation under control sooner than later, which will bring prices down here as well,” he said.

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Thursday, June 16, 2022, PAGE 9

PAGE 12, Thursday, June 16, 2022

THE TRIBUNE

FED ATTACKS INFLATION WITH ITS LARGEST RATE HIKE SINCE 1994 By CHRISTOPHER RUGABER AP Economics Writer THE Federal Reserve intensified its fight against high inflation on Wednesday, raising its key interest rate by three-quarters of a point — the largest bump since 1994 — and signaling more rate hikes ahead as it tries to cool off the U.S. economy without causing a recession. The unusually large rate hike came after data released Friday showed U.S. inflation rose last month to a four-decade high of 8.6% — a surprise jump that made financial markets uneasy about how the Fed would respond. The Fed’s benchmark shortterm rate, which affects many consumer and business loans, will now be pegged to a range of 1.5% to 1.75% — and Fed policymakers forecast a doubling of that range by year’s end. “We thought strong action was warranted at this meeting, and we delivered that,” Fed Chair Jerome Powell said at a news conference in which he stressed the central bank’s commitment to do what it takes to bring inflation down to the Fed’s target rate of

2%. Getting to that point, he said, might result in a slightly higher unemployment rate as economic growth slows. Powell said it was imperative to go bigger than the half-point increase the Fed had earlier signaled because inflation was running hotter than anticipated — causing particular hardship on low-income Americans. Another concern is that the public is increasingly expecting higher inflation in the future, which can become a self-fulfilling prophecy by accelerating spending among consumers seeking to avoid rising prices for certain goods. The central bank revised its policy statement to acknowledge that its efforts to quell inflation won’t be painless, removing previous language that had said Fed officials expect “the labor market to remain strong.” “It’s going to be a far bumpier ride to get inflation down than what they had anticipated previously,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank. Fed officials forecast unemployment ticking up this year and next, reaching 4.1% in 2024 — a level

FEDERAL Reserve Chairman Jerome Powell speaks during a news conference following an Open Market Committee meeting at the Federal Reserve Board Building, Wednesday, June 15, 2022, in Washington. Photo:Jacquelyn Martin/AP that some economists said would risk a recession. Yet Powell largely stuck to his previous reassurances that — with unemployment near a five-decade low, wages rising, and consumers’ finances mostly solid — the economy can withstand higher interest rates and avoid a recession. “We’re not trying to induce a recession now,” he said. “Let’s be clear about that. We’re trying to achieve 2% inflation.”

Powell said that another three-quarter-point hike is possible at the Fed’s next meeting in late July if inflation pressures remain high, although he said such increases would not be common. Some financial analysts suggested Powell struck the right balance to reassure markets, which rallied on Wednesday. “He hit it hard that ‘we want to get inflation down’ but also hit hard that ‘we want a soft landing,’ ‘’ said Robert Tipp,

chief investment strategist at PGIM Fixed Income. Still, the Fed’s action on Wednesday was an acknowledgment that it’s struggling to curb the pace and persistence of inflation, which is being fueled by a strong consumer spending, pandemic-related supply disruptions and soaring energy prices that have been aggravated by Russia’s invasion of Ukraine. Inflation has shot to the top of voter concerns in the months before Congress’ midterm elections, souring the public’s view of the economy, weakening President Joe Biden’s approval ratings and raising the likelihood of Democratic losses in November. Biden has sought to show he recognizes the pain that inflation is causing American households but has struggled to find policy actions that might make a real difference. The president has stressed his belief that the power to curb inflation rests mainly with the Fed. Yet the Fed’s rate hikes are blunt tools for trying to lower inflation while also sustaining growth. Shortages of oil, gasoline and food are contributing to higher prices. Powell said

several times during the news conference that such factors are out of the Fed’s control and may force it to push rates even higher to ultimately bring down inflation. Borrowing costs have already risen sharply across much of the U.S. economy in response to the Fed’s moves, with the average 30-year fixed mortgage rate topping 5%, its highest level since before the 2008 financial crisis, up from just 3% at the start of the year. In their updated forecasts Wednesday, the Fed’s policymakers indicated that after this year’s rate increases, they foresee two more rate hikes by the end of 2023, at which point they expect inflation to finally fall below 3%, close to their target level. But they expect inflation to still be 5.2% at the end of this year, much higher than they’d estimated in March. Over the next two years, the officials are forecasting a much weaker economy than was envisioned in March. They forecast growth will be 1.7% this year and next. That’s below their outlook in March but better than some economists’ expectation for a recession next year.

RUSSIA AGAIN CUTS NATURAL GAS EXPORTS THRU EUROPEAN PIPELINE By GEIR MOULSON Associated Press RUSSIA’S Gazprom announced a reduction in natural gas flows through a key European pipeline for the second day in a row Wednesday, creating further energy turmoil for Europe as it tries to reduce its extensive use of Russian oil and natural gas amid the war in Ukraine. The state-owned energy giant said on Twitter that deliveries through the Nord Stream 1 pipeline to Germany would be cut again

Thursday, bringing the overall reduction through the undersea pipeline to 60%. The drop in shipments of gas used to power industry and generate electricity would amount to some 16 billion cubic meters by the end of the year, or around 10% of total European Union gas imports from Russia, according to Simone Tagliapietra, an energy policy expert at the Bruegel think tank in Brussels. The new cut came a day after Gazprom said it would

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 15 JUNE 2022

BISX ALL SHARE INDEX: BISX LISTED & TRADED SECURITIES 52WK HI 6.70 53.00 2.20 2.61 2.60 6.10 10.05 3.89 9.02 3.10 8.00 16.60 2.65 10.75 11.25 10.85 15.80 4.00 11.00 16.50

52WK LOW 5.30 33.80 1.54 2.20 1.30 5.75 6.96 2.82 4.50 2.27 5.95 9.75 1.99 7.05 10.02 9.55 13.10 3.50 8.19 15.50

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

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00

1.00 10.00 1.00

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

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

52WK LOW 100.00 100.00

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

CHANGE

%CHANGE

YTD

YTD%

2446.09

0.67

0.03

217.85

9.78

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing) 115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 98.65 99.30 100.67 100.43 100.34 100.23 100.00 100.00 100.98 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 98.65 99.30 100.67 100.43 100.04 100.00 89.62 89.00 90.24 90.73

MUTUAL FUNDS 52WK HI 2.52 4.69 2.22 207.86 212.41 1.73 1.83 1.82 1.05 9.37 11.83 7.54 16.64 12.84 10.77 10.00 10.43 14.89

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.68 1.73 1.75 0.99 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

Bahamas Note 6.95 (2029) BGS: 2014-12-7Y BGS: 2015-1-7Y BGS: 2014-12-30Y BGS: 2015-1-30Y BGS: 2015-6-7Y BGS: 2015-6-30Y BGS: 2015-10-7Y BGRS FX BGR141350 BGRS FX BGR142251 BGRS FL BGRS71024 BGRS FL BGRS75022 BGRS FL BGRS81037 BGRS FL BGRS88028 BGRS FX BGR129249 BGRS FX BGR131249 BGRS FX BGR132249 BGRS FX BGR136150

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407 BSBGR1412505 BSBGR1420516 BSBGRS710245 BSBGRS750225 BSBGRS810375 BSBGRS880287 BSBGR1292493 BSBGR1312499 BSBGR1322498 BSBGR1361504

LAST CLOSE 5.35 39.95 2.11 2.35 2.47 6.10 9.75 3.89 8.15 2.82 8.00 16.00 2.56 10.26 11.22 10.85 15.80 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00 LAST SALE 100.00 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 98.65 99.30 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

CLOSE 5.45 39.95 2.20 2.35 2.47 6.10 9.75 3.89 8.15 2.82 8.00 16.00 2.58 10.26 11.21 10.85 15.80 3.98 10.00 15.50 1.00 1000.00 1000.00 1.00 10.00 1.00

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

VOLUME 4,500 71 1,000 30,000 1,555 128,000

300

0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 98.65 99.30 100.91 100.54 100.34 100.00 89.62 100.00 100.00 100.00

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

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

MARKET TERMS

CHANGE 0.10 0.00 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 (0.01) 0.00 0.00 0.00 0.00 0.00

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

VOLUME

26 88 50

NAV 2.52 4.69 2.21 197.44 202.39 1.73 1.82 1.82 0.99 9.37 11.79 7.54 15.94 12.47 10.74 N/A 10.43 14.89

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

INTEREST Prime + 1.75% 6.25% 6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25% 6.35% 6.40% 4.56% 4.43% 4.87% 4.33% 5.55% 5.60% 5.65% 5.69% YTD% 12 MTH% 0.99% 4.22% 0.36% 5.78% 0.67% 2.74% -2.97% -2.35% -4.72% 6.04% 0.83% 2.82% -0.18% 3.72% 0.76% 3.55% -3.55% -3.85% -0.02% 10.36% -0.33% 18.23% 0.22% 3.05% -3.89% 14.76% -1.04% -2.57% 0.81% 4.20% N/A N/A 3.00% 25.60% 7.90% 48.70%

P/E 22.8 42.9 N/M 16.8 N/M N/M 26.4 -8.9 58.2 15.3 17.8 22.2 25.3 22.0 17.4 14.9 19.4 19.6 10.6 24.6 0.000 0.000 0.000 0.000 0.000 0.000

YIELD 3.12% 3.15% 0.91% 3.40% 0.00% 0.00% 2.67% 0.00% 0.00% 4.26% 2.75% 4.50% 16.82% 0.58% 2.93% 2.21% 3.42% 3.02% 2.00% 3.94% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

MATURITY 19-Oct-2022 30-Sep-2025 20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022 17-Nov-2050 15-Feb-2051 22-Oct-2024 7-Sep-2022 26-Jul-2037 26-Jul-2028 15-Apr-2049 15-Jul-2049 15-Oct-2049 21-Apr-2050

NAV Date 31-Mar-2022 31-Mar-2022 25-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Mar-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Jan-2022 31-Mar-2021 31-Mar-2021 31-Mar-2021

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

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

reduce flows by 40% after Canadian sanctions over the war prevented German partner Siemens Energy from delivering overhauled equipment. It blamed the same issue for the additional reduction. But German Vice Chancellor Robert Habeck said Wednesday that Gazprom’s initial move appeared to be political rather than a result of technical problems. He said the new developments “clearly show the Russian side’s explanation is simply an excuse.” “Obviously, the strategy is to unsettle people and push up prices,” Habeck said. Gazprom also told Italian gas giant Eni that it would reduce gas through a different pipeline by roughly 15% on Wednesday. The reason for the reduction has not been made clear, and the Italian company said it was monitoring the situation.

The reduced flows to two of Europe’s biggest importers of Russian natural gas follow Russia’s previous halt of gas supplies to Bulgaria, Poland, Finland, the Netherlands and Denmark. Europe is working to reduce its dependence on Russian energy as the war worsens rising oil and gas prices that are fueling record inflation. Gas demand has fallen after the end of the winter heating season, but European utilities are racing to refill storage ahead of next winte r with prices high and supplies uncertain. While gas storage is refilling well, the cutoffs and reductions come on top of an explosion at a liquefied natural gas terminal in Texas whose exports were largely going to Europe, adding another squeeze to the tight natural gas market, energy expert Tagliapietra said.

THE TRIBUNE

Thursday, June 16, 2022, PAGE 19

RETAIL SALES IN MAY SLIP 0.3% AMID SURGING INFLATION By ANNE D’INNOCENZIO AP Retail Writer

AMERICANS trimmed their spending unexpectedly in May compared with a month before, underscoring how surging inflation on daily necessities like gas is causing them to be more cautious about buying discretionary items. U.S. retail sales slipped 0.3% last month, down from a revised 0.7% increase in April, the Commerce Department said Wednesday. A sharp decline in auto sales, largely because of higher prices and shortages

of new car inventories, depressed the retail sales figure. Excluding autos, retail sales actually rose 0.5% last month. But excluding sales from gas stations, retail sales slipped 0.7%, showing how higher prices at the pump are accounting for more of shoppers’ overall spending. The report also highlighted shoppers’ pullback on some of the products that were in hot demand during the height of the pandemic but are now falling out of favor. Sales fell roughly 1% for furniture and home furnishings stores and electronic and

appliance retailers. Building and garden supply stores, as well as general merchandise retailers, are also showing signs of a sales slowdown. Sales online fell 1%, as shoppers go back to physical stores. Meanwhile, sales at food stores rose 1.2% due to higher prices, not increased consumption. Business at restaurants was up 0.7%. The retail report released Wednesday covers only about a third of overall consumer spending and doesn’t include services such as haircuts, hotel stays and plane tickets.

“Surging prices might finally be taking their toll on real consumption,” said Andrew Hunter, senior economist at Capital Economist. The snapshot comes as Americans have been providing critical support to the economy even after a year of seeing prices spiral higher for gas, food, rent, and other necessities. And signs of recession risks are rising. Inflation is at a 40-year high. Stock prices are sinking. The economy actually shrank in the first three months of this year. And the Federal Reserve

is making borrowing much costlier. Among the biggest worries is surging inflation, which has become more widespread and more persistent than expected. Consumer prices rose 8.6% last month from a year earlier, the biggest annual 12-month jump since 1981. Helping to fuel the surge were much higher prices for everything from airline tickets to restaurant meals to new and used cars. Meanwhile, the national average price at the pump reached $5.01 per gallon on Tuesday, up from $4.45

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 94° F/34° C Low: 75° F/24° C

TAMPA

SATURDAY

SUNDAY

MONDAY

Partly sunny and pleasant

Clear to partly cloudy

Partly sunny and beautiful

Mostly sunny and pleasant

A brief morning shower or two

Morning t‑storms; mostly cloudy

High: 87°

Low: 78°

High: 88° Low: 77°

High: 87° Low: 78°

High: 88° Low: 77°

High: 87° Low: 78°

AccuWeather RealFeel

98° F

87° F

100°-87° F

100°-86° F

98°-86° F

97°-84° F

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

almanac

ABACO

High: 84° F/29° C Low: 77° F/25° C

7‑14 knots

High: 90° F/32° C Low: 78° F/26° C

2‑4 knots

FT. LAUDERDALE

FREEPORT

High: 89° F/32° C Low: 78° F/26° C

E S

WEST PALM BEACH

uV inDex toDay

FRIDAY

| Go to AccuWeather.com

TONIGHT

High: 95° F/35° C Low: 80° F/27° C

High: 87° F/31° C Low: 77° F/25° C

MIAMI

High: 90° F/32° C Low: 77° F/25° C

7‑14 knots

KEY WEST

High: 88° F/31° C Low: 82° F/28° C

ELEUTHERA

NASSAU

High: 87° F/31° C Low: 78° F/26° C

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

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

9:58 a.m. 10:30 p.m.

2.7 3.6

4:08 a.m. ‑0.4 4:03 p.m. ‑0.6

Friday

10:55 a.m. 11:25 p.m.

2.7 3.4

5:03 a.m. ‑0.4 5:00 p.m. ‑0.4

Saturday

11:55 a.m. ‑‑‑‑‑

2.6 ‑‑‑‑‑

5:58 a.m. ‑0.3 6:00 p.m. ‑0.1

Sunday

12:21 a.m. 12:56 p.m.

3.2 2.6

6:54 a.m. ‑0.1 7:03 p.m. 0.1

Monday

1:18 a.m. 1:59 p.m.

3.0 2.6

7:50 a.m. 8:09 p.m.

0.0 0.3

Tuesday

2:17 a.m. 3:02 p.m.

2.8 2.7

8:45 a.m. 9:15 p.m.

0.0 0.5

Wednesday 3:15 a.m. 4:01 p.m.

2.6 2.7

9:39 a.m. 0.1 10:20 p.m. 0.6

sun anD moon Sunrise Sunset

6:20 a.m. Moonrise 8:01 p.m. Moonset

10:45 p.m. 8:27 a.m.

Last

New

First

Full

Jun. 20

Jun. 28

Jul. 6

Jul. 13

CAT ISLAND

High: 85° F/29° C Low: 78° F/26° C

7‑14 knots

8‑16 knots Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 88° F/31° C Low .................................................... 77° F/25° C Normal high ....................................... 87° F/31° C Normal low ........................................ 74° F/23° C Last year’s high ................................. 91° F/33° C Last year’s low ................................... 73° F/23° C Precipitation As of 2 p.m. yesterday .................................. trace Year to date ............................................... 25.72” Normal year to date ................................... 11.14”

High: 86° F/30° C Low: 77° F/25° C

a month ago, and surging more than 60% in one year. Russia’s invasion of Ukraine has worsened global food and energy prices. Extreme lockdowns in China over COVID-19 worsened supply shortages. On Wednesday, the Fed raised its benchmark interest rate, which affects many consumer and business loans, by three-quarters of a percentage point. That marks the Fed’s largest rate hike since 1994, and it signaled more large rate increases to come that would raise the risk of another recession.

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 85° F/29° C Low: 78° F/26° C

High: 86° F/30° C Low: 79° F/26° C

High: 86° F/30° C Low: 80° F/27° C

W S

LONG ISLAND

tracking map

High: 85° F/29° C Low: 79° F/26° C

7‑14 knots

MAYAGUANA High: 87° F/31° C Low: 81° F/27° C

Shown is today’s weather. Temperatures

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 85° F/29° C Low: 79° F/26° C

High: 86° F/30° C Low: 79° F/26° C

GREAT INAGUA High: 88° F/31° C Low: 79° F/26° C

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 N at 2‑4 Knots ENE at 7‑14 Knots NE at 7‑14 Knots ENE at 6‑12 Knots ENE at 7‑14 Knots ENE at 6‑12 Knots ESE at 8‑16 Knots E at 8‑16 Knots ENE at 6‑12 Knots ENE at 4‑8 Knots ENE at 3‑6 Knots E at 4‑8 Knots NE at 8‑16 Knots ENE at 7‑14 Knots E at 8‑16 Knots ENE at 6‑12 Knots E at 8‑16 Knots E at 8‑16 Knots ESE at 7‑14 Knots E at 7‑14 Knots E at 6‑12 Knots ENE at 4‑8 Knots E at 8‑16 Knots E at 7‑14 Knots NE at 7‑14 Knots ENE at 6‑12 Knots

WAVES 1‑3 Feet 3‑5 Feet 0‑1 Feet 0‑1 Feet 2‑4 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 2‑4 Feet 0‑1 Feet 1‑3 Feet 1‑2 Feet 0‑1 Feet 1‑3 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 3‑5 Feet 2‑4 Feet 1‑2 Feet 0‑1 Feet 1‑3 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 8 Miles 10 Miles 10 Miles 7 Miles 9 Miles 10 Miles 8 Miles 10 Miles 8 Miles 10 Miles 10 Miles 7 Miles 6 Miles 10 Miles 10 Miles 5 Miles 9 Miles 10 Miles 10 Miles 8 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 84° F 85° F 86° F 86° F 82° F 82° F 82° F 82° F 83° F 83° F 85° F 86° F 84° F 84° F 82° F 82° F 82° F 83° F 81° F 82° F 84° F 84° F 82° F 82° F 82° F 83° F

PAGE 20, Thursday, June 16, 2022

THE TRIBUNE

WALL STREET RALLIES IN RELIEF AFTER FED’S ASSURANCE ON RATES By STAN CHOE AP Business Writer WALL Street rallied Wednesday following the Federal Reserve’s sharpest hike to interest rates since 1994, and its later assurance that such mega-hikes would not be common.

The S&P 500 climbed 54.51, or 1.5%, to 3,789.99 after whipping through roller-coaster trading immediately following the Fed’s latest move to fight inflation. In equally topsy-turvy trading, Treasury yields eased in the bond market after Chair Jerome Powell seemed to

soothe the market’s fears about an overly aggressive Fed by implying more modest rate increases may be coming later this year. The Dow Jones Industrial Average swung between a gain of 647 points and a loss of nearly 180 before finishing with a gain of 303.70.

It closed at 30,668.53, up 1%. The Nasdaq composite jumped 270.81, or 2.5%, to 11,099.15. The market’s ebullience was a sharp turnaround from the worldwide rout that has dominated much of this year, which forced the S&P 500 into a bear market

earlier this week. The fear has been that high inflation will push the Fed and other central banks to clamp the brakes too hard on the economy and create a recession. Wednesday’s gain was the first for the S&P 500 in six days. Some analysts cautioned the rally could be shortlived given how deeply and broadly high inflation has seeped into the economy and how unsettlingly uncertain the future path is. “Chair Powell painted as rosy a picture as could be painted, and to achieve that picture that he is laying out, that pathway, a lot has to go right,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. “It’s a challenging path, and he acknowledged that.” The Fed on Wednesday hiked its key short-term interest rate by three-quarters of a percentage point, triple the usual move. Powell said the Fed may consider another increase that big at its next meeting in July, but he also said such a hike is “an unusually large one” and not to expect it to be common. The Fed is “not trying to induce a recession now, let’s be clear about that,” Powell said. He said Wednesday’s big increase was about the

Fed speeding up the move to get interest rates back to normal, calling it “front-end loading.” “He’s making it extremely clear to the market, to U.S. consumers, that the Fed takes this seriously and is doing whatever it takes to take inflation down and maintain price stability,” said Quincy Krosby, chief equity strategist for LPL Financial. All kinds of investments, from bonds to bitcoin, have tumbled this year as high inflation forces central banks to swiftly remove supports propped underneath markets early in the pandemic. Even if central banks pull off the delicate trick of slowing the economy just enough to stamp out inflation, without a recession, higher interest rates push down on prices for investments regardless. The hardest-hit have been the investments that soared the most in the easy-money era of ultralow interest rates, including high-growth technology stocks and cryptocurrencies. Treasury yields this week shot to their highest levels in more than a decade on expectations for a more aggressive Fed, though they eased Wednesday following Powell’s comments.

TRADERS work on the floor at the New York Stock Exchange in New York, Wednesday, June 15, 2022. U.S. stocks are rallying Wednesday and are on track for their first gain in six days. But more turbulence may be ahead when the Federal Reserve announces in the afternoon how sharply it’s raising interest rates. Photo:Seth Wenig/AP