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WEDNESDAY, AUGUST 2, 2017
$4.00 RESIDENCY ‘UNCERTAINTY’ TURNS DEVELOPER OFF NEW PROJECTS By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN developer yesterday warned Immigration-related “uncertainty” is threatening to deter him from initiating further multi-million dollar projects once his current crop is completed. Jason Kinsale, the developer behind properties such as Balmoral, ONE Cable Beach and Thirty|Six on Paradise Island, told Tribune Business he needed “more certainty” on the permanent residency investment threshold and process. He added that the nine-12 months being taken to process permanent residency applications was simply “too long” for his potential client base, giving them a negative impression of the Bahamas. And Mr Kinsale said there had been “rumours” that the Minnis administration was discussing increasing the permanent residency threshold for See PG B4
Balmoral creator seeks threshold, timeline clarity ‘Responsible Immigration’ key to Bahamas growth Buyers ‘not beating down door’ to this nation
LESS than 50 per cent of mortgage applications were approved during the 2017 first quarter, highlighting the Bahamas’ ongoing housing crisis and borrower difficulties in qualifying for credit. The Central Bank’s research department, in a presentation accompanying its June economic report, revealed that bank approvals for home loans are significantly below those for consumer and commercial credit. All three loan categories enjoyed a plus-80 per cent approval ratio in the 2015 third quarter but, since then, those for mortgages tailed off steadily to hit 50 per cent in the 2016 second quarter. While mortgage approvals temporarily recovered to near-70 per
MORE than $215 million worth of deficit spending had to be incurred during the final two months of the 2016-2017 fiscal year to hit the Minnis administration’s $500 million projection. Central Bank data, published yesterday, showed that the fiscal deficit was relatively contained just 10 days prior to the May general election, standing at $284.7 million. While this represented a 14.3 per cent, or $35.5 million, increase year-overyear, it again suggests that
$4.06
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A MULTILATERAL lender says the Bahamas “poses a unique challenge” for it, with surface-level wealth “masking significant income inequality” where almost half of those living in poverty are the ‘working poor’. The Inter-American Development Bank, in a June 2017 report, reveals just how this nation has stagnated from a social, economic and equality perspective since the 21st century began.
Working poor 45% of those in poverty GDP growth ‘barely’ above population post-200 External reserves ratio ‘lower than desired’ Kickstarting a review of its Bahamas country programme for the past seven-and-a-half years, the IDB said household income distribution had undergone
“a significant deterioration” since 1999, with the poverty rate jumping from 9.3 per cent in 2001 to 12.8 per cent in 2013. “The Bahamas poses a unique challenge to the Bank,” the IDB said. “Although the country is fairly prosperous, its high levels of human development and per capita GDP1- both among the highest of IDB borrowing member countries - mask important structural, economic and social challenges faced by a developing country, including significant income inequality, high unemployment, a weak skills base, an inefficient
public sector, and inadequate infrastructure. “Although the poverty rate is among the lowest in the region, it has been growing in the context of inadequate social safety nets....., with 45 per cent of the poor gainfully employed but not earning enough to sustain their families. The Family Islands have a disproportionate share of the poor, with Eleuthera having a rate of 17.3 per cent, and Abaco and Andros, 20.3 per cent.” With the Bahamas increasingly susceptible to climate change and natural disasters, the IDB said See PG B3
EX-FNM chair blasts ‘nonchalance’ towards minority shareholders By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net JASON KINSALE
Private construction starts down 36% in Q1 Matthew drove 64% ‘spike’ in loan applications Private sector credit down $17m for half-year cent in last year’s third quarter, they again plummeted during the first three months of 2017 to below 50 per cent. In contrast, commercial bank approval rates for commercial and consumer loans were 90 per cent and 80 per cent, respectively, for the 2017 first quarter. The Central Bank data suggests that Bahamian See PG B5
$215m deficit spend in final two months By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$4.18
IDB: Bahamas ‘poses very unique challenge’
Banks approve fewer than 50% of mortgages By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
$4.05
To hit Govt’s $500m full-year target GB air arrivals drop 41% in Q1 BPL fuel charge up 23% in 3 months the Christie administration had seemingly made progress in containing its deficit following Hurricane Matthew. Based on previous Central Bank reports, which pegged the end-March See PG B5
DARRON CASH
A FORMER FNM chairman yesterday blasted the “nonchalant” attitude of many public companies to respecting minority shareholder rights, especially the timely disclosure of material information. Darron Cash, also an ex-senator, told Tribune
Business there was “a pervasive level of disinterest” in ensuring retail investors were provided with details they were entitled to by law and market rules. A Bank of the Bahamas shareholder (BOB), he, too, confirmed he had yet to receive any materials relating to today’s annual general meeting (AGM) - in common with the See PG B4
Urges: ‘Time for the system to change’ Cash another yet to receive BOB docs Some investors e-mailed after Tribune article