10042017 business

business@tribunemedia.net

WEDNESDAY, OCTOBER 4, 2017

$4.25

$4.41

$4.41

DPM: ‘No comfort’ from $9m first-month surplus

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Near $25m reversal excludes future spend

THE Deputy Prime Minister yesterday said he “takes no comfort” in the $9.1 million Budget surplus achieved by the Government for the 2017-2018 fiscal year’s first month.

K P Turnquest told Tribune Business that the near-$25 million year-over-year reversal identified by the Central Bank did not account for future spending obligations already committed to by the Government, “some of which we don’t know about”.

‘Uncomfortable’ $7.2bn debt still growing VAT up 11.5%; subsidies drop $20.5m While arguing that the Minnis administration’s “sacrifices” and austerity measures were moving the Government’s fiscal position “in the right direction”, he warned

that unexpected events - such as hurricanes - had the potential to “cause tremendous setbacks” to the consolidation effort.

Mr Turnquest, who is also minister of finance, added that he was “uncomfortable” that the Bahamas’ $7.2 billion-plus national debt continues on an upward trajectory despite the new government’s seeminglypromising start in reining in the ‘red ink’.

The Deputy Prime Minister was responding after the Central Bank’s report on August’s economic and financial See PG B4

THERE is “no way in hell” that the Bahamas can take comfort in its improved fiscal ratios via the upward revisions to GDP data, a governance reformer warned yesterday.

Robert Myers, a principal with the Organisation for Responsible Governance (ORG), told Tribune Business that the lower debt-to-GDP and other reduced ratios made little difference given that the Bahamas “already has one foot over the edge of the precipice”.

Describing the near 28 per cent increase in Bahamian GDP as “a waft of good news”, Mr Myers acknowledged that it may help “buy us some time” to enact meaningful fiscal reforms and appease the international credit rating agencies.

Pointing out that the $7.2 billion-plus national debt was continuing to increase, regardless of the improved GDP numbers, he reiterated that the Bahamas’ key objectives remain a narrowing and elimination of the annual fiscal deficits, plus

Reformer: ‘One foot already over cliff’ GDP increase only ‘buys us some time’ Deficit end, 5% annual growth still key

ROBERT MYERS faster economic growth rates.

Responding to the Department of Statistics’ improved GDP figures, Mr Myers told Tribune Business: “There’s no way in hell See PG B4

TOURISM SOFTNESS: NASSAU/ PI ROOM REVENUES OFF 7%

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net HOTEL room revenues on Nassau/Paradise Island fell by 7 per cent year-overyear to end-July 2017, amid warnings of “sustained softness in tourism”.

The Central Bank of the Bahamas, in its monthly economic report for August, said data from a group of major New Providence hotels showed “earnings weakness” in line with a drop in higherspending stopover visitors.

“On a monthly basis, the value of room sales decreased by 3 per cent in July, amid a 6.5 percentage point reduction in the average occupancy rate to 77.3 per cent,” the Central Bank said, “which overshadowed the 2.4 per cent gain in the average daily rate (ADR) to $253.67.

“In addition, over the first seven months of 2017, total room revenue declined by 7 per cent relative to the same period last year. This outturn reflected

‘Earnings weakness’ for big hotels Occupancies, rates also down BOB deal causes $79m bad loan fall a fall in the average hotel occupancy rate by 5.5 percentage points to 70.7 per cent, combined with a 2.4 per cent ($6.06) decrease in the ADR to $247.36.”

The Central Bank figures are especially troubling given that New Providence’s inventory is set to expand by a net 2,300 rooms come March/April 2018 when Baha Mar comes fully on stream.

It is unclear whether Baha Mar’s discounting impacted rates, but the relative pricing, occupancy and demand softness is again likely to renew fears about the $4.2 billion Cable Beach ‘mega resort’ splitting or See PG B5

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE Deputy Prime Minister yesterday pledged that the Government “will not rest on our laurels” despite the improved fiscal ratios resulting from revised GDP growth figures.

K P Turnquest told Tribune Business that the Minnis administration would not slide into “complacency” after the near-28 per cent increase to 2012 GDP estimates brought the Bahamas’ debt ratios back into line with its ‘investment grade’ rating from Moody’s.

With the Bahamas still facing “a significant debt problem”, Mr Turnquest said the Government was simultaneously focused on bringing this under control and generating jobs through higher economic growth.

“It will decrease the [fiscal] ratios, which is a good thing,” the Deputy Prime Minister said of the

SEBAS: WEB SHOPS ‘LEAST LIKELY’ TO POSE FINANCIAL CRIME RISK Slams claim legalisation threatens financial services Says: ‘We’re under tightest magnifying glass’ Adds claims challenging sector, GB integrity

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

DPM KP TURNQUEST

‘NO WAY IN HELL’ BAHAMAS Govt ‘not resting on CAN RELAX ON HIGHER GDP laurels’ over GDP increases

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

$4.30

DPM: Must get debt ‘under control’ GDP fell $500m under PLP Three-year recession deeper Department of Statistics’ GDP revisions. “Hopefully, the credit rating agencies will recognise that and it will be favourable, but we cannot rest on our laurels.

“The challenge we have is to ensure we don’t become complacent as a result of it, and recognise that we still have a significant debt problem that we have to get under control. No matter what the GDP figures are saying, it’s the responsibility of the Government to raise the revenues to meet its commitments.”

See PG B2

ISLAND Luck’s principal yesterday said web shops were the “least likely” sector to pose money laundering risks, as he slammed claims its legalisation had endangered the wider financial services industry.

Sebas Bastian hit back at financial services executive, Paul Moss, arguing that his comments challenged the integrity of not just web shop operators but the sector’s Gaming Board regulator.

Mr Moss had charged that the “overnight” legalisation of a previously illegal ISLAND LUCK CEO sector had creSEBAS BASTIAN ated “a recipe for disaster” if global regulatory bodies, such as the Caribbean Financial Action Task Force (CFATF), were to scrutinise the situation.

But Mr Bastian, in a statement to Tribune Business, said the Government wanted to legalise, regulate and tax the web shop industry to address these very same concerns, ensuring the multi-million dollar sums it generated were brought into the formal economy.

He added that all licensed web shops applied strict Know Your Customer (KYC) and due diligence standards, given that they were being held to global best practices and closely supervised.

See PG B3

PAGE 2, Wednesday, October 4, 2017

THE TRIBUNE

Realtor expands its global sales reach A BAHAMIAN real estate company has expanded its international services with the appointment of multi-linguist Bobby Chen to its sales team.

Mike Lightbourn, Coldwell Banker Lightbourn Realty’s president, said Mr Chen was fluent in English, Mandarin, Cantonese and Spanish.

Mr Chen returned home, launching his real estate career as a business developer with one of the largest real estate development projects in the Bahamas.

He was exposed to various real estate transactions, including commercial real estate acquisition, lease obligations, strategic planning, transaction management, financial

structuring and asset reposition and dispositions.

Mr Chen then obtained a Bahamas Real Estate Association (BREA) license under Coldwell Banker Lightbourn Realty.

He trades equity and cryptocurrency in his spare time, and is a tennis and vintage watch enthusiast and fitness lover.

BOBBY CHEN

GB MEDICAL FACILITY OFFERS NEW TREATMENT

offering of evidence-based regenerative medicine treatments.”

As an autoimmune disease, scleroderma damages connective tissue and can be difficult to diagnose. One of its most serious conditions is systemic scleroderma, where the ‘sclerosis’ or hardening of the tissue often occurs in the internal systems of the body, such as the lungs, kidneys, heart and gastrointestinal organs. The two categories of systemic scleroderma are limited and diffuse, with the latter being more severe.

Those patients enrolled in the STAR trial with diffuse scleroderma showed improvements in the Cochin Hand Function

Score and the Health Assessment Questionnaire-Disability Index (HAQ-DI), a measure of functional disability.This met or exceeded the published criteria for minimally important clinical differences in these measures (6.5 points for Cochin1, 0.22 points for HAQ-DI2).

The protocol used by Okyanos involves patients undergoing fat harvest through small volume liposuction under anesthesia.

The extracted lipoaspirate is then processed to produce ADRCs for same-day administration into all fingers of both hands. In addition, the patient will receive an intravenous infusion of ADRCs.

The nominal GDP figures, which include inflation’s impact, also showed a -0.4 per cent contraction in 2013. This, though, was followed by growth of 1.6 per cent, 3.7 per cent and 0.2 per cent in 2014, 2015 and 2016, respectively, which took nominal GDP in the latter year to $11.262 billion.

The Ministry of Finance said the datas showed “a weaker economic outturn” between 2013-2015, “confirming that the real economy was smaller in 2016 than it was in 2012 when the PLP last took office”.

Mr Turnquest yesterday said the Government’s growth plans involved multiple initiatives to foster entrepreneurship, including the ‘Fresh Start’ and ‘Jump Start’ programmes, increased financing for the Bahamas Entrepreneurial Venture Fund and the ‘start-up entrepreneurship centre’ partnership with the University of the Bahamas.

“In addition to that we’re working hard to finalise some investment proposals

that will create employment, so we’re working with foreign direct investment and empowering local local entrepreneurs to hopefully spur economic activity,” he told Tribune Business.

The Deputy Prime Minister added that the 9.9 per cent unemployment rate “still paints a very dismal picture”, with recent improvements driven by temporary public sector hiring pre-general election rather than the private sector.

“We know we have a lot of work to do to create real jobs and real growth, so that people can build careers and start businesses,” he said. .

This resulted in 2012 GDP, or total economic output, increasing from the original $8.4 billion to $10.721 billion. And, given that GDP is the denominator, the increased economic output means an automatic improvement in the Bahamas’ debt-to-GDP and other key fiscal ratios.

A GRAND Bahamabased medical facility yesterday unveiled a new treatment for patients with diffuse scleroderma.

The Okyanos Center for Regenerative Medicine announced it is offering a new and advanced protocol, based on the STAR clinical trial, which could aid more than 50,000 Americans afflicted by the illness.

Cytori Therapeutics reported the findings of the STAR trial earlier this year. The procedure used adipose derived regenerative cells (ADRCs) to treat

“We are pleased to have the services of this young Bahamian go-getter, especially given the global nature of business today.

Bobby has a solid network of contacts, both locally and internationally, and is perfectly suited for the job,” he added.

Mr Chen graduated summa cum laude from Purdue University in

accounting, finance and business management.

He started his career in US tax advisory with EY (Ernst & Young), one of the ‘Big four’ firms in professional services, developing a strong base of international corporate clients though his professional services.

After a few years in the US financial sector,

scleroderma affecting the hands and fingers.

The trial evaluated 88 participants, 51 of whom had diffuse scleroderma, a more severe form of the disease. At the end of the study, those patients treated for diffuse cutaneous scleroderma showed significant improvements in hand function and functional disability scores 48 weeks after treatment.

Okyanos said more than 50,000 Americans suffer with diffuse scleroderma, the most severe type of this autoimmune disease. This

treatment, which is currently not being offered in the US, will now be made available at its Grand Bahama facility.

“Through the delivery of regenerative therapies, our mission at Okyanos is to restore and extend healthy living,” said Vincent Burton, Okyanos’s president.

“We are offering this advanced protocol as an opportunity for symptomatic relief for patients with skin manifestations of diffuse scleroderma, as well as to allow treating

physicians to consider an additional option to help their patients feel better.”

“ADRCs are an active stem cell population. The evidence of clinical benefit in the STAR trial parallels the effects we see in patients with multiple chronic conditions who we treat with ADRCs,” said Dr Marc Penn, Okyanos’s director of research and development.

“Our new protocol for diffuse cutaneous scleroderma is another significant example of Okyanos’ commitment to expanding our

Govt ‘not resting on laurels’ over GDP increases

Mr Turnquest said the Government remained focused on both areas, adding: “We’re focused on growing the economy, and creating jobs and entrepreneurial opportunities for the Bahamian people.

“We’ll continue to press forward with our expenditure control programme and Fiscal Responsibility legislation because we recognise there are two sides to this equation, and we have to be operating efficiently and optimally on both.”

The Minister added that it was “so far, so good” on the Government’s fiscal consolidation plan, which includes a 10 per cent ‘across-the-board’ cut to its $2.67 billion recurrent spending Budget for 20172018 and a hiring freeze in the public service.

Equal attention, though, needs to be provided to

the Bahamian economy’s growth - or lack of it. The Department of Statistics’ Friday report confirmed that the Bahamas was in recession for three consecutive years between 2013-2015, with real GDP declining by almost $500 million over the period 2012-2016.

The contraction was also worse than the Department had originally projected, having estimated that the Bahamas ‘flat-lined’ with zero growth in 2013, followed by declines of 0.5 per cent and 1.7 per cent in 2014 and 2015, respectively.

The revised real GDP figures, which strip out inflation, showed the Bahamian economy contracted by -0.6 per cent, -1.2 per cent and -3.1 per cent in 2014, 2015 and 2016, respectively.

Growth only returned, and marginally at that, with 0.2 per cent in 2016.

From pg B1 Mr Turnquest was speaking after the Department of Statistics said last Friday that the use of new data sources (especially VAT filings), and different methodologies, had resulted in a near-28 per cent upward revision to the Bahamas’ GDP numbers for 2012 The Ministry of Finance said the new figures meant the 2012 national debtto-GDP ratio had been revised downwards to 46.7 per cent, compared to the earlier 59.6 per cent estimate. Likewise, the direct charge on government, which strips out debts it has guaranteed on behalf of the public corporations, fell from 52.4 per cent to 41 per cent.

Using 2012 as a base to calculate the 2016 figures, the Ministry added that the debt-to-GDP ratio dropped from 80.8 per cent to a more acceptable 62.6 per cent last year. And the Government’s direct debt had fallen from 72.4 per cent of total GDP to 56.1 per cent.

This brings the Bahamas’ debt-to-GDP ratios into line with the ‘Baa3’ investment grade rating it has from Moody’s, which it is desperate to retain.

The rating agency has given the Bahamas 12-18 months to deliver on its economic growth and fiscal consolidation plans before determining whether a ‘junk’ downgrade is warranted.

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THE TRIBUNE

Wednesday, October 4, 2017, PAGE 3

Bahamian fishing lodges ‘left out’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net BAHAMIAN fly-fishing lodge owners yesterday said an inability to access capital and lack of government support had made it difficult to compete with foreign rivals, with one saying: “We are being left out.”

Shawn Leadon, of Andros Outdoor Adventures, told Tribune Business that the recent regulatory reforms had benefited local guides, but offered no protection to Bahamian lodge owners.

“Foreign developers come in, but they have access to foreign capital.

We have no form of representation, marketing or assistance from the Government, so we are being beaten with our own stick,”

said Mr Leadon. “This type of industry should be preserved for Bahamians.

“Foreigners are going to go where their people are.

If a Bahamian goes to the US and opened a Bahamian restaurant, most Bahamians would flock there. It is what it is. This fly fishing industry which we created is a part of our culture. We can’t have foreign elements dictating what our culture

Bahamian airline ‘ready to go’ on southern islands

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net A BAHAMIAN airline principal yesterday said his company was “ready to go” in providing improved service and connectivity to the southern Bahamas.

Captain Randy Butler, Sky Bahamas chief executive, said there needed to be a clear-cut strategy, backed by the highest levels of government, to revive Family Island airlift.

His comments came after Out Island Promotion Board (BOIPB) executive director, Kerry Fountain, lamented that tourism activity in the southern Bahamas has “definitely been down”, which he blamed on “terrible” airlift connectivity.

Mr Fountain told Tribune Business that the Board will today unveil marketing initiatives for the southern Bahamas, and other promotional activities aimed at remedying the situation.

In response, Captain Butler told Tribune Business: “There must be a real plan.

Demand drives airlift. If you are going to connect the southern islands there has to be a partnership with airline operators, local hotels, the Ministry of Tourism and the Out Island Promotion Board.

“There is nothing happening on the islands because there is no airlift, and you have to stimulate airlift. It requires participation of all stakeholders to make it happen. We are ready to participate, but unless the higher levels of government, the Minister of Tourism, is driving it nothing is going to happen.”

CAPTAIN RANDY BUTLER Captain Butler added: “In the National Development Plan there needs to be an element that addresses this in a real and practical way. In order for economies on the Family Islands to develop, you have to work with the airlines.”

He pointed to the United States’ Essential Air Service (EAS) programme, which was put into place to guarantee that small communities received a minimal level of scheduled air service.

“The Family Islands need frequent and cost effective airlift,” Captain Butler reiterated. “Right now no one is driving the process. I have the airplanes; I have approvals whether it be US to the Bahamas, the Bahamas to US or just Nassau to the Out Islands. We are ready to go; it’s just a matter of how we do this.”

is. These guys are spending their money overseas. They are channelling all of their resources to them. Our policies have opened the door for anyone to come here and take advantage of us.”

Several Bahamian bonefishing lodge owners and guides in the southern Bahamas told Tribune Business earlier this week that they were “catching hell”, with some alleging that

business is being steered to foreign-owned rivals.

Samuel Mackey, of Tranquility Hill Fishing Lodge, told Tribune Business: “No one seems to have any concern for us. We are suffering tremendously. The local lodges in this country are suffering. They are killing us. We are being left out. I hope that someone can see the plight of the Bahamian

lodge owner. We have to be able to survive.

“Right now I have some damage to my place from the storm, and I’m trying to scrap a few dollars to get things fixed. I have a few loyal folks that keep coming back. I think that Bahamian lodges are being neglected for the foreign lodges and left in the cold.

We borrow money locally and spend money locally.”

Sebas: Web shops ‘least likely’ to pose financial crime risk

responsible for gaming, recently acknowledged that numerous issues surrounding the web shop industry remained to be addressed, including the 10-year moratorium on new entrants, which he deemed anti-competitive; the proliferation of locations throughout the Bahamas; and implementation of its zoning regulations.

However, neither the current government, nor the Christie administration, ever appeared to address the fate of web shop operators’ pre-legalisation profits, which were used to invest in legitimate sectors of the Bahamian economy, make mortgage loans and enter into a wide range of investment activities.

The web shop sector barely rated a mention in the Caribbean Financial Action Task Force’s (CFATF) recent assessment of the Bahamas’ anti-money laundering and counter terror financing regimes; possibly because the examiners were only looking at the period when it had just been legalised.

The industry’s legalisation, as Mr Bastian explained, was driven in part because it represented a money laundering ‘high risk’ if it remained illegal, with millions of dollars being transacted outside the formal banking system and economy. Web shop operators are already generally recognised as having strict Know Your Customer (KYC) procedures in place.

From pg B1 “The gaming industry operates under the tightest magnifying glass in this country,” said Mr Bastian.

“No industry undergoes greater scrutiny. We are regulated by, and visited by, the Gaming Board on a daily basis, just as the casinos at Atlantis and Baha Mar are.

“One of the most respected accounting firms in the region is the firm of record to review all of our transactions. We bank with a bank that is supervised by the Central Bank of the Bahamas, and is compliant with international risk compliance standards.”

Responding to Mr Moss directly, the Island Luck chief added: “So, by saying that we in the gaming industry could bring down the financial services in the Bahamas, are you saying that you do not trust those who serve on the Gaming Board? Are you saying you don’t trust the accountants or the bank or the Government?”

Mr Moss, president of Dominion Management Services, had argued that web shops were also operating as unlicensed banks and money transmission providers in Family Island communities where there is no commercial bank presence.

And he suggested that the way in which the sector

was legalised had exposed “a glaring deficiency in our system” that could attract attention from international regulatory bodies.

Mr Bastian, though, countered that the web shop industry was the segment least likely to produce anti-money laundering/terrorism financing risks from a financial services perspective.

“There is absolutely no justification to tarnish respected professionals and institutions,” he said.

“Government wanted the industry regularised so that there would be security surrounding it, and we would be held to the standards that are acceptable in a world in which there is greater and greater concern with the source of funds. ““The reason reporting standards have gotten tighter is to guard against funds that could be linked to terrorist financing or other activities that could wreak havoc on a global scale. Our source of funds is so evident – a local population, with each and every person having to show proof of residence or citizenship. So, in fact, we are the least likely to be on a ‘watch list’ or raise concern from those whose prying eyes are trying to keep the world safe.”

Dionisio D’Aguilar, the Cabinet minister

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PAGE 4, Wednesday, October 4, 2017

DPM: ‘No comfort’ from $9m first-month surplus From pg B1 developments revealed that the Minnis administration had reversed July 2016’s $15.8 million deficit, turning it into a $9.1 million surplus.

With final figures for the 2016-2017 fiscal year yet to be published, the Central Bank said: “Preliminary data on the Government’s operations for the first month of fiscal year 20172018 showed a $9.1 million surplus, a turnaround from a $15.8 million deficit recorded during the corresponding period a year earlier.

“This outturn reflected a contraction in total expenditures by $18 million (10.2 per cent) to $159.5 million, which overshadowed the $6.8 million (4.2 per cent) gain in aggregate revenue to $168.6 million.”

Mr Turnquest, though, responded cautiously and downplayed the first-month fiscal surplus, saying: “I don’t keep score like that.”

He emphasised, in particular, that the Central Bank’s numbers were based on the Government’s traditional cash-based accounting system, rather than the modern accrual method which captures future spending commitments for which funds have yet to be released.

Implying that the inclusion of such obligations may have produced a deficit, Mr Turnquest told Tribune Business: “One of the things we must bear in mind is that is cash-based, and we have obligations that are out there, and some we don’t know are out there.

“I don’t take comfort in that number [$9.1million surplus] as it’s a cash

‘No way in hell’ Bahamas can relax on higher GDP From pg B1 that you can have any complacency in government.

“We’re already beyond; we’re in the position of no return. Maybe the numbers cause an improvement of a few percentage points, and help buy us some time, but they don’t pull us back from the precipice.

“That move might give us a sigh of relief, but by

no means does it mean we’re anywhere in the clear.

We still have a lot of debt and deficit problems, and contingent liabilities are increasing because of pension liabilities that are not being frozen. We have to cap these pension plans.

All these things are out of whack.”

The Department of Statistics said last Friday that

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COMPANIES ACT, 1992 (CH. 308)

NOTICE OF VOLUNTARY WINDING UP ALPHARETTA HOLDINGS LTD. (formerly THIRTY THREE EAST PARK AVENUE INC.) (In Voluntary Liquidation) (Registration Number: 62306 (C)) TAKE NOTICE that the above-named Company was put into liquidation on the 2nd day of October, 2017 by a resolution passed by its members on the 2nd day of October, 2017.

AND FURTHER TAKE NOTICE that TONI Y. GODET and CELESTE F. MITCHELL both of Lyford Cay House, 6th Floor, Western Road, Lyford Cay, P. O. Box N-7776 (Slot 193), New Providence, The Bahamas, Tel: 242-702-2000, have been appointed joint voluntary liquidators of the said Company.

Dated this 4th day of October, 2017.

TONI Y. GODET Joint Voluntary Liquidator

CELESTE F. MITCHELL Joint Voluntary Liquidator

NOTICE CLOUD GEEK LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) CLOUD GEEK LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 3rd October, 2017 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 4th day of October, A. D. 2017 _________________________________ Bukit Merah Limited Liquidator

THE TRIBUNE basis. What I’d really be interested to know and determine is, from June onwards, whether we’re running a real surplus as opposed to a cash surplus.”

However, he conceded of the first-month figures: “It says we’re moving in the right direction, and the sacrifices and commitments we’re making are achieving that. We have to stay true to our course and statements, and follow through to the end of the year.

“Any unexpected turn of events can cause a tremendous setback, so we have to continue to be prudent, demonstrate our commitment to fiscal consolidation and reform, and just work the plan.”

The first-month Budget surplus was hailed by some in the private sector. Rick Lowe, a Nassau Institute executive and noted ‘fiscal hawk’, replied “fantastic, fantastic” when told of the Central Bank’s figures.

“Now they have to keep that pace up because we

have a lot of catching up to do,” he told Tribune Business. “I hope it’s not a one-off. That’s the type of action required to bring the fiscal house in order.

“It’s an important first step. The spending cuts don’t seem to have made any government services worse. It has to be incremental and it has to be continuous. I just hope there are no major setbacks.”

Mr Turnquest, though, said the Bahamas’ national debt continued to climb, albeit at a slower rate than in the past.

“On an apples to apples basis our debt trend is still in an upward direction, so I’m still not comfortable about that,” he told Tribune Business.

The Central Bank said the July spending reduction stemmed from “negligible” capital expenditure, plus a $20.5 million or 36.6 per cent reduction in subsidies or transfers to public corporations.

It described a “timingrelated decline” of $8.2 million, or 42.5 per cent, in subsidies to the Public Hospitals Authority (PHA) and National Health Insurance (NHI). Transfers to other public corporations dropped by $9.2million or 69.2 per cent.

“In a partial offset, consumption spending rose by $16.8 million (23.1 per cent) to $89.8 million, with purchases of goods and services and wages and salaries growing by $12.7 million (70.2 per cent), and $4.2 million (7.6 per cent), respectively,” the Central Bank added.

On the revenue front, tax collections increased by 5.1 per cent to $156.4 million year-over-year, led by an 11.5 per cent rise in ValueAdded Tax (VAT) receipts.

“The revenue improvement was underpinned by a $7.6 million increase in tax collections,” the Central Bank said. “Gains were reported for the majority of the categories, led by VAT

receipts, which advanced by $7.9 million (11.5 per cent) to $76.6 million, while business and professional fees firmed by more than twofold ($4.4 million) to $8.1 million, due to a $4.3 million expansion in general business fee proceeds.

“Meanwhile, taxes on international trade grew by a more muted $1.5 million (3.4 per cent) to $45.7 million. In contrast, ‘other’ tax collections declined by $6.3 million (19.4 per cent) to $26.5 million, as ‘unclassified’ receipts were negligible during the review period, compared to the prior year’s $10.4 million.

“However, other stamp tax receipts firmed by $2.3 million (42.3 per cent).

Total non-tax revenue softened by $0.8 million (6.1 per cent ) to $12.2 million, led by a $0.4 million (3.9 per cent) reduction in receipts from fines, forfeits and administrative fees.”

the inclusion of new data sources, and use of different methodologies, had resulted in a near-28 per cent upward revision to the Bahamas’ GDP numbers from 2012 onwards.

This resulted in 2012 GDP, or total economic output, increasing from the original $8.4 billion to $10.721 billion. And, given that GDP is the denominator, the increased economic output means an automatic improvement in the Bahamas’ debt-to-GDP and other key fiscal ratios.

The Ministry of Finance, in a statement on the Department’s national accounts report, confirmed that the Value-Added Tax (VAT) returns and filings from around 6,500 registrants had provided much better data on the level of economic activity occurring in the Bahamas.

Using the nominal GDP figures, which include inflation, the Ministry said the new figures meant the 2012 national debt-to-GDP ratio had been revised downwards to 46.7 per cent, compared to the earlier 59.6 per cent estimate. Likewise, the direct charge on government, which strips out debts it has guaranteed on behalf of the public corporations, fell from 52.4 per cent to 41 per cent.

When it came to the 2016 figures, the Ministry of Finance said the debtto-GDP ratio had dropped from 80.8 per cent to a more acceptable 62.6 per cent. And the Government’s direct debt had fallen from 72.4 per cent of total GDP to 56.1 per cent.

Tribune Business’s own calculations, taking the $7.263 billion national debt at end-June 2017, and the $10.22 billion in 2016’s real GDP, pegged the debt-toGDP ratio at 71 per cent in real terms - still above the 70 per cent ‘danger threshold’ that marks the territory where countries could lose control of their fiscal affairs.

Using 2016’s nominal GDP of $11.262 billion produced a debt-to-GDP ratio of around 64.5 per cent, still slightly higher than the Government’s own.

Mr Myers, though, told Tribune Business that the revised GDP numbers and fiscal ratios did not change the fundamental problems still facing the Bahamian economy.

With the Department of Statistics report confirming that the Bahamas had been locked in recession for the three-year period between 2013-2015, the ORG principal emphasised that annual GDP growth of 5 per cent-plus remained vital to tackling the country’s unemployment and social problems.

And, with the projected 2017-2018 Budget deficit of $323 million set to add to ‘red ink’ of similar magnitude incurred by the Christie administration, the Bahamas’ national debt will continue to increase back towards the levels just ‘escaped’ unless eliminated.

Some $4.4 billion will be added to the national debt in 13 years if the current government’s Budget projections come true.

Urging the Bahamas to focus on the future, and not the recent past, Mr

Myers said: “We’ve got a waft of good news, but not enough to make anyone at all jubilant.

“Anybody that’s jumping for joy doesn’t understand how economies work and adjust. Anyone jumping for joy, thinking we’re saved, does not deserve a position in the Ministry of Finance or anywhere else for that matter.”

While conceding that the GDP revisions amounted to “a debt-to-GDP windfall” of around 10 percentage points, the ORG principal added: “We’ve got to do everything we can to drive GDP up; we’ve got to do everything we can to reduce the cost of government; and have got to do everything we can to reduce and eliminate the deficit.

“That’s a slow process.

Let’s be realistic; we’re not going to close the deficit gap overnight. If we cut expenditure by 30 per cent that might cause a recession, but if we cut by 3-5 per cent per annum we’ll get where we need to be going in several years’ time.”

The Government’s projected $2.67 billion in recurrent spending, and $230 million in capital spending, for 2017-2018 are equivalent to 28.4 per cent of the Bahamas’ 2016 real GDP. Mr Myers said cutting by expenditure by 5 per cent annually would reduce the Government’s size, as a percentage of the economy, to 27 per cent in 2018-2019 and 25.6 per cent in 20192020 using 2016 real GDP as the basis.

Should the Bahamas reverse its economic decline and start generating

economic growth, Mr Myers said Government spending as a proportion of GDP would be even lower.

And improved economic growth will also drive the debt-to-GDP ratio and other fiscal indicators lower.

With real GDP pegged at $10.221 billion in 2016, he warned that Bahamian economic output needed to expand by more than $500 million - half-a-billion dollars - in 2017 if it is to hit the 5 per cent growth target set by the IMF to absorb all school leavers and cut existing unemployment in half.

“That’s the target,” Mr Myers told Tribune Business. “Anything falling off that, we’ll be short. We need to be climbing by 5 per cent per annum, which is huge, and eliminate that deficit gap. We have a tremendous amount of work to do.

“It’s simple but it’s complex. It’s not easy to do these things. These are mammoth tasks, but if we don’t we will continue to head to the precipice.

We’ve already got one foot over the edge, and that’s what we’re trying to pull back from.

“We’ve got one foot over the edge, and don’t know how stable the ground is under the other foot on the cliff. My biggest fear is a category five hurricane hitting Nassau, which completely removes the ground on the edge of the cliff.”

Legal Notice NOTICE IRIS PRIVATE HOLDING COMPANY LTD. NOTICE IS HEREBY GIVEN as follows: (a) IRIS PRIVATE HOLDING COMPANY LTD., is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said Company commenced on the 3rd October, 2017 when its Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said Company is Shareece E. Scott of Deltec Bank & Trust Limited, Deltec House, Lyford Cay, P.O. Box N-3229, Nassau, Bahamas.

N O T I C E ALPHARETTA HOLDINGS LTD. (formerly THIRTY THREE EAST PARK AVENUE INC.) (In Voluntary Liquidation)

Creditors having debts or claims against the above-named Company are required to send particulars thereof to the undersigned at P. O. Box N-7776 (Slot 193), New Providence, The Bahamas on or before the 18th day of October, 2017. In default thereof they will be excluded from the benefit of any distribution made by the Joint Voluntary Liquidators.

Dated the 4th day of October, 2017

Dated this 4th day of October, A.D. 2017 Shareece E. Scott Liquidator

________________________________________ TONI Y. GODET and CELESTE F. MITCHELL Joint Voluntary Liquidators

THE TRIBUNE

Wednesday, October 4, 2017, PAGE 5

Tourism softness: Nassau/ PI room revenues off 7% From pg B1 cannibalising the high-end visitor market with Atlantis and other properties, rather than growing it.

With 400,000 extra airline seats needed into Nassau annually to fill Baha Mar’s extra capacity, the Ministry of Tourism, promotion Boards and individual properties will need to redouble their marketing efforts.

The Central Bank added of the hotel data: “These trends were reinforced by data from the Nassau Airport Development Company (NAD), which showed a 0.3 per cent softening in international departures from the country’s largest airport during the month of August, vis-avis a marginal 0.9 per cent gain in the prior year.

“In terms of the components, the volume of non-US international passengers fell by 6.9 per cent, after a 0.3 per cent decline a year earlier, while growth in the dominant US segment slowed to 0.6 per cent from 1 per cent in 2016.”

The Central Bank said construction industry activity, driven by foreign direct investment (FDI) projects and hurricane rebuilding, was helping to compensate for the reduced activity in the Bahamas’ leading industry.

It added, though, that Baha Mar’s full opening and the diversion of tourists from the hurricanehit southern Caribbean meant the tourism sector’s medium-term prospects were better, Freeport and the still-closed Grand Lucayan notwithstanding.

“Domestic economic activity is expected to remain relatively mild

over the remainder of the year, with tourism output constrained by ongoing weakness in the country’s second largest market, and the short-term disruption to travel itineraries - caused by the two major storms - on several key source markets,” the Central Bank said.

“However, this effect is likely to be balanced by the potential shift in visitors from destinations severely affected by the hurricanes, and the further increase in room inventory resulting from the phased opening of the Baha Mar resort.”

The Central Bank added that the Government’s fiscal consolidation efforts were likely to be “dampened” by infrastructure repair costs in the southern Bahamas in Hurricane Irma’s wake.

However, it added that the reduction in commercial bank non-performing loans (NPLs) “should be maintained” throughout 2017, largely due to Bank of the Bahamas disposing of $166 million worth of toxic credit to Bahamas Resolve.

“Reflecting mainly the sale of a second tranche of Bank of the Bahamas’ nonperforming commercial loans to Resolve Ltd, total private sector loan arrears contracted by $79.4 million (7.7 per cent) to $951.2 million, while the corresponding ratio of arrears to total private sector loans decreased by 1.2 percentage points to 16.3 per cent,” the Central Bank said.

Adding that the full impact of the Bahamas Resolve transaction would be seen in September, the regulator added: “In particular, non-performing loans (NPLs) fell by $84.5

million (11.6 per cent) to $646.5 million, resulting in the attendant ratio receding by 1.3 percentage points to 11.1 per cent. In contrast, the short-term (31-90 day) segment rose by $5.1 million (1.7 per cent) to $304.6 million, with the arrears rate firming by 15 basis points to 5.2 per cent of total loans.

“By loan type, the improvement in asset quality mainly reflected a $79.1 million (33.2 per cent) reduction in commercial delinquencies to $159 million, as the nonaccrual segment contracted by $70.6 million (35.3 per cent), while short-term arrears decreased by $8.5 million (22.2 per cent).

“Similarly, the consumer segment fell by $3.1 million (1.2 per cent) to $263.3 million, as the $9.9 million (5.8 per cent) falloff in the NPL category eclipsed the $6.8 million (7.1 per cent) uptick in the short-term segment.

In contrast, mortgage delinquencies firmed by $2.8 million (0.5 per cent) to $528.9 million, as the $6.8 million (4.1 per cent) increase in the short-term segment negated the $4 million (1.1 per cent) decrease in NPLs.” The Central Bank continued: “The sale of the non-performing portfolio allowed BOB to reduce its provisions for loan losses significantly, and as a consequence the aggregate provisions for the sector fell by $53.6 million (10.6 per cent) to $454.7 million.

“Reflecting mainly the asset sale to Resolve Ltd, the delinquency rate for commercial loans plunged by 8.2 percentage points, while the corresponding mortgage rate fell by 2.6 percentage points. However, the consumer loan rate firmed slightly by 19 basis points.”

EUROPEAN COURT ASKED TO RULE ON FACEBOOK DATA TRANSFERS

By DANICA KIRKA Associated Press LONDON (AP) — The European Court of Justice has been asked to consider whether Facebook’s Dublinbased subsidiary can legally transfer users’ personal data to its U.S. parent, after Ireland’s top court said Tuesday that there are “well-founded concerns” the practice violates European law.

In a case brought after former U.S. defense contractor Edward Snowden revealed the extent of electronic surveillance by American security agencies, the Irish court found that Facebook’s transfers may compromise the data of European citizens.

The case has far-reaching implications for social media companies and others who move large amounts of data via the internet. Facebook’s European subsidiary regularly does so.

Ireland’s data commissioner had already issued a preliminary decision that such transfers may be illegal because agreements between Facebook and its Irish subsidiary don’t adequately protect the privacy of European citizens. The Irish High Court is referring

the case to the European Court of Justice because the data sharing agreements had been approved by the European Union’s executive Commission.

Ireland’s data commissioner “has raised well-founded concerns that there is an absence of an effective remedy in U.S. law . for an EU citizen whose data are transferred to the U.S. where they may be at risk of being accessed and processed by U.S. state agencies for national security purposes in a manner incompatible” with the EU’s Charter of Fundamental Rights, the Irish High Court said Tuesday.

Austrian privacy campaigner Maximillian Schrems, who has a Facebook account, had challenged this practice through the Irish courts because of concerns that his data was being illegally accessed by U.S security agencies.

“U.S. citizens would not be allowed to have such mass surveillance as for European citizens and we have to protect our citizens,” Schrems said. “And actually, Europe protects anybody because we see it as a human right, not as a citizens’ right.”

Facebook said standard contract clauses provided critical safeguards and that such safeguards are used by thousands of companies to do business.

“They are essential to companies of all sizes, and upholding them is critical to ensuring the economy can continue to grow without disruption,” the company said in statement.

It added that it was important that the European court “now considers the extensive evidence demonstrating the robust protections in place under standard contractual clauses and U.S. law before it makes any decision that may endanger the transfer of data across the Atlantic and around the globe.”

In an earlier ruling in the case, the European Court of Justice found that the socalled Safe Harbor regime, which Facebook previously relied on when transferring data to the U.S., violated EU law because it didn’t provide effective legal remedies. The Safe Harbor regime had been established in 2000 by the EU executive Commission, which found that U.S. data protection laws were adequate to protect the rights of EU citizens.

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT

2016 CLE/GEN/00047

Common Law and Equity Division IN THE MATTER of an Indenture of Mortgage made the 9th day of October, A.D., 2006 between Tarnia Paula Newton and Finance Corporation of Bahamas Limited.

AND IN THE MATTER of an Indenture of Further Charge made the 26th day of October, A.D., 2006 between Tarnia P. Newton and Finance Corporation of Bahamas Limited AND IN THE MATTER of the Mortgages Act, Chapter 156 of the Revised Laws BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED AND TARNIA PAULA NEWTON

Plaintiff Defendant

To: Tarnia Paula Newton TAKE NOTICE that an action has been commenced against you in the Supreme Court of the Commonwealth of The Bahamas by Finance Corporation of Bahamas Limited, Main Branch, 323 Bay Street, Nassau, New Providence, Bahamas, in which the Plaintiff ’s claim is set out in the Originating Summons filed in this action on the 16th day of January, A.D., 2016 as renewed seeking an Order to direct you to deliver up possession of the Mortgaged Property situated in the Heritage Community Subdivision comprising of Lot Numbered Six (6) in Block Numbered Nine (9) in the City of Freeport on the Island of Grand Bahama another one of the Islands of the said Commonwealth of The Bahamas to Finance Corporation of Bahamas Limited within Twenty-eight (28) days of the Order and Judgment for the sums outstanding under the Indenture of Mortgage dated the 9th day of October, A.D., 2006 and sums outstanding under the Indenture of Further Charge dated the 26th day of October, A.D., 2006, and that it has been ordered that the publication of a notice of the entry of the Originating Summons as renewed filed on the 16th day of January, A.D., 2016, Affidavit in support of application filed on the 27th day of May, A.D., 2016, Ex Parte Summons filed on the 14th day of February, A.D., 2017, Affidavit in support of Ex Parte Summons filed on the 9th day of March, A.D., 2017 and Order dated on the 6th day of July, A.D., 2017 in The Tribune Newspaper and the Nassau Guardian Newspaper shall be deemed to be good and sufficient service of the said document upon you.

The Originating Summons will be heard before the Honourable Mr. Justice Gregory Hilton of the Supreme Court at The Judicial Complex, East Street, Nassau, New Providence, Bahamas on Wednesday the 11th day of October, A.D., 2017 at 9:30 o’clock in the forenoon, on which day you are to appear, and if you do not appear either in person or by your Attorney at the time and place abovementioned, such Order will be made as the Court thinks just.

If you desire to defend the said action, you must within fourteen (14) days from the publication of this advertisement, inclusive of the day of such publication, enter an appearance in person or by an attorney either (1) by handing in the appropriate forms duly completed, at the Registry of the Supreme Court, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, Bahamas, or (2) by sending them to that office by post.

A copy of the said Originating Summons, Ex Parte Summons, Affidavit in support of Ex Parte Summons and Order may be obtained from the Supreme Court Registry, Judicial Complex, East Street North, Nassau, Bahamas, or from the Attorneys for the Plaintiff below mentioned.

Dated the 3rd day of October, A.D., 2017 HIGGS & JOHNSON Ocean Centre Montagu Foreshore East Bay Street Nassau, New Providence, Bahamas Attorneys for the Plaintiff

PAGE 6, Wednesday, October 4, 2017

THE TRIBUNE

AT SITE OF ‘BATTLE OF WHIRLPOOL,’ MACRON PROMOTES JOBS PLAN

By SYLVIE CORBET and THIBAULT CAMUS Associated Press AMIENS, France (AP) — French President Emmanuel Macron has used a visit to an ailing Whirlpool factory that had become a symbol of the battle for jobs as an opportunity to promote his economic policies.

The dryer factory in Amiens, northern France, was during the presidential campaign in April the site of what became known as the “battle of Whirlpool.”

At the time, far-right candidate Marine Le Pen had upstaged Macron with a surprise visit to the factory, which was threatened with closure. That prompted Macron to meet with angry workers: he was booed at first, but stood his ground, patiently debating about how to stop French jobs from moving abroad.

The site was then taken over in September by a local industry group that promised to maintain most of the jobs.

Macron on Tuesday welcomed the “good news” and met with employees in a relaxed atmosphere.

“We must make the French territory more attractive” to investors, he told reporters.

Macron turned Tuesday’s visit into a tightly-controlled PR effort aimed at showing the impact of his economic policies. He took numerous selfies and joked with employees in front of the single press video camera allowed to cover the visit.

Macron insisted his government’s budget for next year aims to cut taxes to increase French workers’ purchasing power. “The middle class will benefit from it,” he said.

The government plans to cut taxes by 10 billion euros ($11.7 billion) next year in hopes of boosting growth and jobs.

One key part of the plan is the scrapping of a tax on wealth that currently applies to people with more than 1.3 million euros in assets. Instead,

FRENCH President Emmanuel Macron, right, listens to a member of parliament Francois Ruffin of La France Insoumise (France Unbowed) political party as he visits the Whirlpool factory in Amiens, France, yesterday.

Macron visits an ailing Whirlpool dryer factory in northern France that was the site of a pivotal moment in his presidential campaign, when he debated with angry workers about his strategy to stop job losses. (Philippe Wojazer/Pool Photo via AP)

the government wants to create a tax on real estate, in a move that it hopes will attract more wealthy French and foreign investors in the country.

France’s left-wing parties and workers’ unions accuse Macron, a former investment banker, of being “the president of the rich people.”

“For years we taxed the successful people, and we regulated the job market with rigid rules. And what

did we get? Job losses,” Macron said.

A few CGT unionists symbolically gathered near the factory to protest against Macron’s labor reforms, saying they weaken hard-won workers’ rights.

The government last month passed changes to labor laws that make it easier for firms to hire and fire and reduce the power of national collective bargaining, prompting a series of nationwide street protests.

MARKET REPORT TUESDAY, 3 OCTOBER 2017

SPOILS OF BREXIT: EU CITIES RACE TO GET EU AGENCIES FROM UK

By RAF CASERT Associated Press BRUSSELS (AP) — It’s a prestigious side effect of Brexit: Two institutions hosted by Britain have to move out when it leaves the European Union and just about every other nation in the bloc wants them.

The competition to relocate the European Medicines Agency and the European Banking Authority hits the home stretch this week with many EU nations still eager to claim one of the organizations, which will bring in top talent, money to the local economy and prestige to the nation.

Eight European cities are seeking to host the banking authority and 19 want to be the home of the medicines agency. Some cities — like Brussels, Warsaw, Vienna and Dublin — are making pitches for both agencies to increase their chances of landing one. No city will get both.

“We have a good chance to go further,” Foreign Minister Didier Reynders said Tuesday after he presented Belgium’s candidacy for both agencies.

The European Commission already published a non-binding assessment last weekend on the candidate

cities and a final decision is set for mid-November at a meeting of EU nations in Brussels.

The EMA is responsible for the scientific evaluation, supervision and safety monitoring of medicines in the EU. It has around 890 staff and hosts more than 500 scientific meetings every year, attracting about 36,000 experts.

The EBA, which has around 180 staff, monitors the regulation and supervision of Europe’s banking sector.

The EU cities have been offering lavish benefits to capture such prizes: Frankfurt is offering space in the Westhafen Tower, a new circular skyscraper, for the banking agency, while Prague, the Czech capital, is offering to pay the banking agency’s rent for five years.

Milan wants to host the medicines agency in a 31-story skyscraper, the iconic Pirelli building, while Athens has offered to put it in the Keranis Building — a former cigarette factory.

Belgium is bidding for both agencies — but it already hosts the headquarters of the EU Commission, the EU Council, the defense agency and co-hosts the EU Parliament, so any more agencies would further centralize EU business in one place.

t. 242.323.2330 | f. 242.323.2320 | www.bisxbahamas.com

BISX ALL SHARE INDEX: CLOSE 1,896.71 | CHG -0.89 | %CHG -0.05 | YTD -41.50 | YTD% -2.14 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.96 0.15 5.83 8.60 6.30 11.25 14.49 2.52 1.60 6.00 10.00 11.00 3.45 7.25 12.51 11.00

52WK LOW 4.06 17.43 8.19 3.50 1.26 0.12 3.80 8.40 5.83 9.46 10.00 2.18 1.50 5.80 8.75 7.01 3.35 6.61 11.93 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 105.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

SECURITY AML Foods Limited APD Limited Bahamas Property Fund Bahamas Waste Bank of Bahamas Benchmark Cable Bahamas CIBC FirstCaribbean Bank Colina Holdings Commonwealth Bank Commonwealth Brewery Consolidated Water BDRs Doctor's Hospital Famguard Fidelity Bank Finco Focol ICD Utilities J. S. Johnson Premier Real Estate Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class E Commonwealth Bank Class J Commonwealth Bank Class K Commonwealth Bank Class L Commonwealth Bank Class M Commonwealth Bank Class N Fidelity Bank Class A Focol Class B

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

52WK LOW 100.00 100.00 100.00

SYMBOL AML APD BPF BWL BOB BBL CAB CIB CHL CBL CBB CWCB DHS FAM FBB FIN FCL ICD JSJ PRE CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

SECURITY Fidelity Bank Note 17 (Series A) + Fidelity Bank Note 18 (Series E) + Fidelity Bank Note 22 (Series B) +

SYMBOL FBB17 FBB18 FBB22

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

BAH29 BG0103 BG0203 BG0105 BG0205 BG0107 BG0207 BG0130 BG0230 BG0303 BG0305 BG0307 BG0330 BG0403 BG0405 BG0407

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

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

MUTUAL FUNDS 52WK HI 2.09 3.96 1.97 170.77 146.34 1.50 1.67 1.58 1.10 6.99 8.54 6.15 10.52 11.46 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.44 1.63 1.55 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.28 17.43 9.09 3.65 1.39 0.15 3.92 8.60 6.10 11.25 10.01 2.56 1.55 6.00 9.75 7.08 3.45 7.01 12.50 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00 LAST SALE 100.00 100.00 100.00 108.91 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.65 1.26 0.15 3.92 8.60 6.10 11.25 10.01 2.56 1.55 6.00 9.75 7.08 3.45 7.01 12.50 10.00

CHANGE 0.00 0.00 0.00 0.00 -0.13 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

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.40 100.00 100.00 100.00 10.00 1.00

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

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

109.14 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.23 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 FG Financial Preferred Income Fund FG Financial Growth Fund FG Financial Diversified Fund FG Financial Global USD Bond Fund Royal Fidelity Bahamas Opportunities Fund - Secured Balanced Fund Royal Fidelity Bahamas Opportunities Fund - Targeted Equity Fund Royal Fidelity Bahamas Opportunities Fund - Prime Income Fund Royal Fidelity Int'l Fund - Equities Sub Fund Royal Fidelity Int'l Fund - High Yield Fund Royal Fidelity Int'l Fund - Alternative Strategies Fund

VOLUME 2,000 115 4,088 500 500

100

VOLUME

NAV 2.09 3.95 1.97 174.30 146.25 1.50 1.63 1.58 1.08 6.92 8.03 6.15 10.52 11.46 10.01

EPS$ 0.467 0.932 -0.230 0.540 -0.340 0.000 -0.857 0.574 0.681 0.540 0.559 0.102 0.455 1.212 0.768 0.575 0.929 -0.602 0.697 0.000

DIV$ 0.080 1.000 0.000 0.210 0.000 0.000 0.000 0.300 0.220 0.360 0.570 0.060 0.060 0.290 0.450 0.000 0.340 0.140 0.620 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

P/E 9.2 18.7 N/M 6.8 N/M N/M -4.6 15.0 9.0 20.8 17.9 25.1 3.4 5.0 12.7 12.3 3.7 -11.6 17.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 7.00% 6.00% Prime + 1.75%

MATURITY 19-Oct-2017 31-May-2018 19-Oct-2022

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

20-Nov-2029 15-Dec-2017 30-Jul-2018 16-Dec-2019 30-Jul-2020 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2018 26-Jun-2020 26-Jun-2022 26-Jun-2045 15-Oct-2018 15-Oct-2020 15-Oct-2022

YTD% 12 MTH% 2.92% 4.43% 0.98% 1.19% 1.54% 2.45% 3.48% 4.01% 3.17% 7.00% 2.15% 4.22% -1.93% -1.89% 0.81% 2.21% 2.28% 1.30% -1.08% 1.77% -5.96% -3.05% 1.90% 4.59% 7.24% 11.96% 2.77% 3.88% 3.94% 4.69%

NAV Date 31-Aug-2017 31-Aug-2017 25-Aug-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 30-Jun-2017 31-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017 30-May-2017

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

YIELD 1.87% 5.74% 0.00% 5.75% 0.00% 0.00% 0.00% 3.49% 3.61% 3.20% 5.69% 2.34% 3.87% 4.83% 4.62% 0.00% 9.86% 2.00% 4.96% 0.00%

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 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-7525 | LENO 242-396-3225

BELGIAN Foreign Minister Didier Reynders addresses the audience during a presentation of Belgium’s bid to host the European Medicines Agency in Brussels, yesterday. (AP Photo/ Virginia Mayo)

NOTICE

NOTICE is hereby given that MICHEL FORESTAN of Bartlett Hill, Eight Mile Rock, Grand Bahama, 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 4th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, VANDYKE EDMUND ANDERSON of Dundas Town Great Abaco The Bahamas intend to change my name to VANDYKE EDMUND ARMBRISTER. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Officer, PO Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of the publication of this Notice.

NOTICE

NOTICE is hereby given that Marlana ann Maxwell of Scotland Cay, P.O.Box AB20495 Marsh Harbour, Abaco, 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 October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

THE TRIBUNE

Wednesday, October 4, 2017, PAGE 7

WHITE HOUSE TO SEEK $29B DISASTER AID PACKAGE AP SOURCES SAY

By ANDREW TAYLOR Associated Press

WASHINGTON (AP) — The Trump administration is finalizing a $29 billion disaster aid package that combines $16 billion to shore up the government-backed flood insurance program with almost $13 billion in new relief for hurricane victims, according to a senior administration official and top congressional aides.

The huge request is expected to be officially sent to Congress on Wednesday, but its outlines were characterized by officials demanding anonymity because the $29 billion measure is not yet public.

The request would address two pressing needs.

The first is to pump money into the government-run flood insurance program, which is rapidly running

out of cash to pay an influx of claims from victims of hurricanes Harvey, Irma, and Maria. At the same time, the Federal Emergency Management Agency continues to spend money for disaster relief operations at a high rate and requires more money.

The government-guaranteed flood insurance program is maxing out on a $30 billion line of credit from Treasury; the upcoming proposal would wipe $16 billion of that debt off the books to permit the program to pay claims from hurricane victims.

Another $13 billion is being requested for FEMA, and federal firefighting accounts would receive $577 million as well to replenish them after a disastrous season of Western wildfires.

“This is going to be extraordinarily expensive

and I think we need to get some money out there,” said House Appropriations Committee Chairman Rodney Frelinghuysen, R-N.J. Later this year, the White House is expected to require tens of billions of dollars more in longterm funds that would rebuild infrastructure, help people without insurance restore their homes, and — perhaps — help Puerto Rico reconstitute its shattered electrical grid.

Congress last month approved a $15.3 billion aid package that nearly doubled President Donald Trump’s request.

Senate Republicans added $7.4 billion in community development block grant rebuilding funds to Trump’s request for immediate cleanup, repair, and housing costs.

MARINE One helicopter carrying President Donald Trump surveys areas impacted by Hurricane Maria, yesterday, near San Juan, Puerto Rico. (AP Photo/Evan Vucci)

US AUTOMAKERS POST FIRST MONTHLY SALES GAIN OF YEAR IN SEPTEMBER DETROIT (AP) — The auto industry posted its first monthly sales gain of the year September, led by strong truck and SUV sales and the replacement of cars destroyed by Hurricane Harvey in Texas.

U.S. sales rose 6.1 percent to just over 1.5 million vehicles, according to Autodata Corp., as Toyota, Honda, Ford, General Motors, Nissan and Volkswagen all posted strong numbers. Of major automakers, only Fiat Chrysler and Hyundai reported sales declines.

Industry analysts predicted that positive sales would continue through the end of the year fueled by customers whose cars were destroyed by Harvey and Hurricane Irma in Florida.

But sales aren’t expected to be strong enough to match last year’s record of more than 17.5 million.

Christopher Hopson, manager of light vehicle forecasting for IHS Markit, said September had a perfect mix of hurricane replacement demand, high incentives, rising fleet sales and strong sales of outgoing 2017 models. “While this strong level of demand isn’t expected to be sustained throughout the fourth quarter, these short-term supports are not likely to drop off in a meaningful way, setting the stage for strong Q4 results,” Hopson said in a statement.

GM reported on Tuesday that sales rose 11.9 percent from a year ago, while Ford sales rose 8.7 percent.

Toyota posted a 14.9 percent increase, while Nissan sales were up 9.5 percent and Honda sales rose 6.8 percent. Volkswagen said its sales rose 33.2 percent over numbers that were

depressed a year ago by its diesel emissions cheating scandal.

Fiat Chrysler sales fell 10 percent and Hyundai, which relies on cars for much of its results rather than SUVs and trucks, saw sales fall 14.4 percent. Both blamed reductions in sales to big fleet buyers such as rental car companies.

Industry analysts had predicted a small sales rise for the month, with the Edmunds.com auto site expecting a 0.4 percent increase. But automakers, aided by hurricane sales, powered past the forecasts.

For the first nine months of the year, overall industry sales were down 1.8 percent. September sales would have been even higher without Hurricane Irma, which forced many Florida dealerships to close

THE LOGO on the wheel of an SUV in front of a Chevrolet dealership in Richmond, Va. General Motors and Ford each posted strong U.S. sales in September 2017, confirming predictions that the industry could rebound for the month. (AP Photo/Steve Helber)

for a week or longer due to lack of electric power.

Ford gained 5,000 to 6,000 sales from replacement of flooded cars in the Houston area, where it offered employee pricing. But it lost about 1,000 vehicle sales in Florida due to closed dealerships, Vice President of Sales and Marketing Mark LaNeve said on a conference call. He expects industry sales to get a boost through the rest

of the year from cars being replaced due to hurricane damage.

Strong pickup truck and SUV sales once again propelled the September increase.

Ford’s F-Series pickup sales rose 21 percent from a year ago, while SUV sales were up 8.8 percent.

Inventory levels dropped to a 72-day supply, and LaNeve said Ford may even increase production to raise

that a little. Automakers have been trimming production, especially of cars, for much of the year.

Even car sales, which have been battered during the past few years as buyers switched to SUVs and trucks, showed a bit of life. For instance, Toyota’s midsize Camry, once the top-selling car in the U.S., posted a 13 percent sales gain as all-new 2018 models reached showrooms.

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THE TRIBUNE

Soaring airline stocks help lift Wall Street to new heights

By STAN CHOE Associated Press NEW YORK (AP) — Airline and automaker stocks took off on Tuesday and helped U.S. indexes push a bit further into record territory. Trading was again quiet overall, with only modest moves for bond yields, commodities and other markets.

The Standard & Poor’s 500 index rose 5.46 points, or 0.2 percent, to 2,534.58 for its sixth straight day of gains.

The Dow Jones industrial average rose 84.07, or 0.4 percent, to 22,641.67, and the Nasdaq composite rose 15.00 points, or 0.2 percent, to 6,531.71. The Russell 2000 index of small-cap stocks added 2.49, or 0.2 percent, to 1,511.97. All four indexes are at records.

Airlines led the way after Delta Air Lines updated its forecast for third-quarter results. The Atlanta-based carrier expects to report roughly 2 percent growth in a key revenue measurement, which would be at the high end of the forecast range it had given a month earlier, after accounting for the hit that it took from Hurricane Irma.

Delta jumped $3.18, or 6.6 percent, to $51.25 for its best day since January 2015.

United Continental, American Airlines Group and

A WALL Street street sign outside the New York Stock Exchange. U.S. stock indexes ticked higher in early yesterday, and tacked on a bit more to their records set a day earlier. Trading was again very quiet, with only modest moves for bond yields, commodities and other markets. Stock markets were closed in Germany, China and South Korea for holidays. (AP Photo/Mark Lennihan, File) Southwest Airlines also each rose more than 4 percent.

Outside of airlines and a handful of other big movers, though, markets were generally quiet. No big economic reports were on the docket, and few companies reported quarterly results.

“This is the calm before we get hit with some more impactful information,” said Steve Chiavarone, portfolio

manager at Federated Investors.

In upcoming weeks, the market will be looking to hear more about whether Washington will be able to cut tax rates for companies and others. Investors may also get clues about who the next chair of the Federal Reserve will be, and most companies will begin

reporting their third-quarter results.

In the meantime, some economic reports may look abnormally weak because of the hurricanes that have recently struck the United States, such as this week’s upcoming report on hiring.

But investors are expecting to see temporarily weaker numbers, which would limit the impact, Chiavarone said.

General Motors and Ford Motor were some of the market’s top performers after each reported strong U.S. sales growth for last month. It’s a turnaround for automakers, which had seen sales drop across the industry through the year’s first eight months.

GM climbed $1.30, or 3.1 percent, to $43.45, and Ford gained 25 cents, or 2.1 percent, to $12.34.

Homebuilder Lennar rose after it reported stronger quarterly sales and earnings than analysts expected. Interest rates remain relatively low, and the strengthening job market is helping to convince more people to buy homes. Lennar rose $2.53, or 4.8 percent, to $55.35.

Shares of Equifax and Wells Fargo both rose, even though representatives for the companies received tongue lashings on Capitol Hill.

Equifax climbed $2.64, or 2.4 percent, to $110.45 after House members grilled its former CEO over the data hack that exposed the personal information of 145 million Americans. Wells Fargo added 11 cents, or 0.2 percent, to $55.58 after a Senate committee questioned its CEO on the bank’s sales-practice scandal, where employees had signed customers up for accounts without their knowledge.

The yield on the 10-year Treasury note fell to 2.32 percent from 2.34 percent late Monday. The two-year yield fell to 1.46 percent from 1.49 percent, and the 30-year yield dipped to 2.86 percent from 2.87 percent.

The dollar inched up to 112.90 Japanese yen from 112.65 yen late Monday.

The euro rose to $1.1752 from $1.1746, and the British pound dipped to $1.3247 from $1.3286.

In overseas markets, France’s CAC 40 rose 0.3 percent, and the FTSE 100 in London gained 0.4 percent.

Japan’s benchmark Nikkei 225 rose 1 percent to its highest closing level in two years, and Hong Kong’s Hang Seng jumped 2.2 percent. Stock markets were closed in Germany, China and South Korea for holidays.

In the commodities market, gold slipped $1.20 to settle at $1,274.60 per ounce, silver was close to flat at $16.65 per ounce and copper rose 1 cent to $2.96 per pound.

Benchmark U.S. crude dipped 16 cents to settle at $50.42 per barrel. Brent crude, the standard for international oil prices, fell 12 cents to $56.00 per barrel.

Natural gas fell 2 cents to $2.90 per 1,000 cubic feet, heating oil dropped 2 cents to $1.75 per gallon and wholesale gasoline rose a penny to $1.57 per gallon.

Hundreds of safe-deposit boxes flooded by Hurricane Harvey HOUSTON (AP) — Hurricane Harvey’s rainfall flooded hundreds of safedeposit boxes in Houston and forced more than 30 of the area’s bank branches to close.

About 400 of Chase Bank’s 80,000 safe-deposit boxes in the city flooded, the Houston Chronicle

reported . Wells Fargo, Bank of America and BBVA Compass didn’t specify how many of their safe-deposit boxes were damaged, though Bank of America says about 2,000 boxes were at its three branches closed by the flooding.

Tiffany Rogers rented a safe-deposit box at a Chase bank nearly a decade ago.

She said she paid $250 annually to store her family’s birth certificates, passports and other important items.

“I thought I could keep them safe if my house burned down,” Rogers

said. “I never thought of floods.”

Chase is offering customers free ultrasonic cleaning machines and cleaning solutions to help salvage coins and jewelry.

The bank is also reimbursing customers for the cost of replacing important

documents, such as passports and birth certificates.

Chase has relocated thousands of boxes to another building where customers can make appointments to retrieve their items.

Bank of America is providing customers information on restoration and

replacement services, bank officials said.

Chase and BBVA Compass have waived safedeposit box fees. Chase fees typically run from $45 to $165 depending on the size of the box, while BBVA averages about $50 a year for a 3-inch-by-5inch box.