10132017 business

business@tribunemedia.net

FRIDAY, OCTOBER 13, 2017

$4.25

$4.41

$4.41

BDB: ‘Everything turns’ on $64m debt restructure

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

he Bahamas Development Bank’s (BDB) chances of meeting the Government’s three-year ‘self-sufficiency’ target depend entirely on its ability to restructure $64 million in long-term debt.

Lynden Nairn, the institution’s newly-appointed chairman, told Tribune Business yesterday that “everything turns” on negotiations with the National

Insurance Board (NIB) and other holders of the BDB’s $43 million bonds in the quest for “breathing room”.

Emphasising that the BDB was not asking institutional investors to write-off their investments, Mr Nairn revealed that recapitalisation plans also rely on the Government agreeing to convert a $21 million debt into a larger equity position in the bank.

With more than 60 per cent of the BDB’s $34 million loan portfolio rated

* CHAIRMAN SEEKS $43M BOND ‘BREATHING ROOM’ * WANTS GOV’T TO CONVERT $21M DEBT INTO EQUITY * OVER 60% OF $34M LOAN PORTFOLIO ‘NON-ACCRUAL’ ‘non-performing’, the institution has been in “a holding position” for several years, unable to engage in lending to new entrepreneurs simply because it lacks the liquidity to do so.

Mr Nairn said the BDB’s new Board had initiated efforts to collect on “100

per cent” of the security/ collateral for non-performing loans, where borrowers failed to settle or agree a payment plan, as it seeks to place the bank in a position where it can again begin to fulfill its mandate.

This task, though, pales in importance compared to

the long-term debt restructuring, which Mr Nairn said was critical if the BDB is to stand on its own feet by 2020.

This was the deadline set by K P Turnquest, the deputy prime minister, for

SEE PAGE 5

BDB chair: ‘Days of $50k hand-outs over’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Development Bank’s (BDB) chairman yesterday pledged to tighten lending protocols, adding: “The days of giving someone $50,000 and saying: ‘Go get it done’ are gone”.

Lynden Nairn told Tribune Business that the BDB had little choice but to reexamine “the entire lending regime” given that more than 60 per cent of its $34 million credit portfolio is non-performing, or more than 90 days past due.

While the high loan delinquency levels have prevented the BDB from fulfilling its mandate to Bahamian entrepreneurs, Mr Nairn said the institution - once reformed - still had a vital role to perform

in filling the void left by commercial banks.

He pointed out that outstanding credit extended to the agriculture, fisheries and manufacturing sectors had declined by 56.4 per cent since the turn of the century, falling from $106 million in 2000 to $46 million today, as Bahamasbased commercial banks withdrew from lending to the productive sectors in favour of consumer credit.

In an earlier speech to the Rotary Club of West Nassau yesterday, Mr Nairn sought to both define and redefine the BDB’s future role, explaining that it would stay relevant - once cleaned-up - by supporting foreign exchange-earning industries central to the Government’s announced policy goals.

To get there, he explained to Tribune

Central Bank back in compliance on Gov’t debt limits

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank yesterday said its government debt holdings are back in compliance with its governing Act, with medium and long-term maturities equal to 12.52 per cent of its demand liabilities.

The regulator, responding to the IMF’s Article IV report, confirmed that proposals to impose limits on “the total value” of government debt that it can hold will be circulated for public

* ADMITS CAP EXCEEDED ‘MARGINALLY’ FOR FEW MONTHS * SECONDARY MARKET REDUCES HOLDINGS BY $80M * EFFORT FURTHER AIDED BY $150M GOV’T REPAY consultation end 2017.

It added “continuing reducing its

before yearthat it was to focus” on lending to the

SEE PAGE 6

AG: Bahamas ‘riding behind competitors’ in financial services

By NATARIO MCKENZIE Business REPORTER nmckenzie@tribunemedia.net THE Attorney General yesterday lamented that “riding behind our competitors” had caused “incalculable” damage to the financial services industry, accusing the former government of failing to act on tax information exchange changes.

Carl Bethel QC, addressing the Senate, said the Christie administration had

* SLAMS CHRISTIE GOV’T FOR CRS INACTION * SAYS ‘INCALCULABLE’ DAMAGE CAUSED “done nothing’ for three years in relation to the OECD’s Common Reporting Standard (CRS), which has become the global benchmark for automatic tax information exchange.

Underscoring the need to “revitalise” the financial

SEE PAGE 3

* REVAMPING ‘ENTIRE LENDING REGIME’ * 56% PRODUCTIVE LOAN FALL SHOWS BDB NEED * HAS ‘INFRASTRUCTURE’ TO ADMINISTER GOV’T PPPS Business that the BDB was seeking to restructure $64 million in long-term debt (see other article on Page 1B) plus revamp its lending approach by focusing on borrowers’ business plan sustainability and corporate governance.

“We have to do a better job assessing credit,” Mr Nairn told Tribune Business.

“We are certainly looking at our protocols generally. We do know that we are going to require our borrowers to have a strong corporate governance element. “We need to understand the level

of accountability that our borrowers will have with a Board or advisory team.

We need to know who those people are, and have a sense of the extent to which they’ve been successful. Gone are the days of giving someone $50,000 and saying: ‘Go get on with it’.”

Mr Nairn continued: “We’re looking at the entire lending regime. The bank has always had a committee that examines all of the loan applications.

We’re strengthening that committee.

“Frankly, we’re more concerned with the strength of the business plan than

we are about the underlying collateral. That ought to be the root of development banking anyway.

“Historically, we have insisted on collateral in most cases.

“But just because someone has collateral doesn’t mean they will get a loan from the bank.

“You have to have a solid business plan.”

Despite its problems, Mr Nairn argued that an institution such as the BDB remained relevant to the modern Bahamian

SEE PAGE 5

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K P TURNQUEST

GOV’T NOT TARGETING IMF’S $70M SLASH * BUT MUST RIGHT ‘UPSIDE DOWN’ ECONOMY * DPM: CUTS ‘ORGANIC’ VIA ‘NATURAL ATTRITION’ * EYES SOE EFFICIENCY, ‘NOT MAJOR RATE HIKES’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government is not targeting the IMF’s recommended $70 million wage bill slash, the Deputy Prime Minister said yesterday, but it must right the Bahamas’ “upside down” economy.

K P Turnquest told Tribune Business that the Minnis administration will use ‘a scalpel rather than a shotgun’ to right-size the public sector, suggesting that the former government had used it as an employment agency during its fiveyear term.

This, he argued, had turned the economy “upside down” by making

SEE PAGE 4

PAGE 2, Friday, October 13, 2017

THE TRIBUNE

‘GLASS HALF FULL’ MENTALITY KEY FOR CORPORATE LEADERS

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1. Demonstrate care each day. Team members need assurance daily that you are genuinely concerned about their wellbeing. A sincere ‘how are you’, periodic check-up on their children’s welfare, and opening conversations regarding their passions and dreams all send the message that you are a caring leader. Care also involves telling your team members the truth about their behaviour and work performance.

2. Do not be afraid to be vulnerable. It is fine to not know all the answers.

Leaders who are straight and honest with what they do not know are valued and respected more than ‘know it all’ managers. This

means, then, that a culture must be established where the leader can admit to making mistakes and apologise to team members for inappropriate actions and decisions.

3. Be truly great at something, and use that gift to advance someone else and the organisations you serve.

Successful leaders, and those who are respected, stand out because they are technically astute beyond what is ‘average’ in an area or discipline relating to their jobs. They are sought out as the leader in that specific area, and speak with authority on the matter.

This also requires the leader to remain current in their expertise, constantly applying their learning.

4. Demonstrate humility.

Leaders with impact operate with a strong sense of modesty and meekness.

They reject arrogance and a high-minded approach to leadership. Instead, they make every effort to blend

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in with the normal routine and demonstrate to the team each day that they are, like everyone else, part of the collective.

5. Involve and engage others in your triumphs and major decisions. Democracy works in the workplace when major decisions are being made. People need to feel valued and part of the game. Openness and transparency wins many points for a leader not afraid to share information, ideas and concerns.

6. Give praise and rewards generously. Small tokens of appreciation, and positive reinforcement in the form of compliments and praise, all go a long way in keeping employees engaged and motivated.

7. Remain positive and optimistic about everything.

No one appreciates complainers, especially when they are in leadership positions. The leader must be able to inspire and encourage others to see beauty and opportunity, even in dark situations. The ‘glass half full’ mindset is crucial in leaders.

8. Learn to balance the things that matter most, and say ‘no’ to those that cannot be accommodated on your top priority list. Do not try to become everyone’s hero.

There are simply some events, people and projects you cannot make a contribution to. Be fair and honest about those things, and keep it moving.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.

THE TRIBUNE

Friday, October 13, 2017, PAGE 3

Minister: GB needs a ‘tourism identity’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net

* Says: ‘Stop gap measures can’t continue’ * Admits Celebration loss is ‘big blow’

GRAND Bahama must be given a signature tourism identity, a Cabinet Minister saying yesterday: “We cannot continue to proceed with stop gap measures.”

Kwasi Thompson, minister of state for Grand Bahama, told the Senate that the Minnis administration will establish “a tourism signature identity in the marketplace for Grand Bahama”.

“This is what is truly required for Grand Bahama,” he added. “We cannot continue to proceed with stop-gap measures, but we must finally provide a proper identity for Grand Bahama. We must provide a master plan for our tourism product. It must be unique from Nassau, Abaco and the rest of the Bahamas.

“We have an opportunity with the Lucayan strip, and while the hotel must be redeveloped urgently, we must ensure that we create the right destination for Grand Bahama. This includes airlift, cruise vessels, tours and activities.

Grand Bahama must be a distinct destination.”

Mr Thompson agreed that the Port Lucaya

Marketplace was “severely challenged” as a result of the Grand Lucayan’s closure. To mitigate the effects, he said the Government in early August launched ‘A Taste of Port Lucaya’.

“These series of events are designed to bring some economic boost to the tenants of Port Lucaya Marketplace,” he said. ‘A Taste of Port Lucaya’ features top Bahamian artists and other live entertainment.

“The Ministry of Tourism team is leading our international marketing campaign in conjunction with the Grand Bahama Island Tourism Board.

This will not solve Port Lucaya’s challenges, and was not designed to, but it has brought more activity and some vendors advise their businesses have been helped,” said Mr Thompson.

He added that the Ministry of Tourism has been aggressively seeking additional cruise ships for the island, and several vessels have been rep-routed as a result of Hurricane Irma’s southern Caribbean impact.

“We have experienced a big blow when we lost the

Bahamas Celebration for several months, after they were called on by the US Government,” Mr Thompson said. “To assist, the FRS Caribbean will provide a vessel from Miami to Freeport on a temporary basis to provide additional stopover passengers to the island. We are also in final discussions with Sunwing and other major carriers to provide additional airlift to the island.”

Mr Thompson said the Minnis administration remains committed to establishing Freeport as a technology hub, similar to Silicon Valley, with a Technology Summit schedulded for November 9-10.

“The Grand Bahama Tech Summit is a call to all industry stakeholders, locally and internationally, to begin the conversation that would shape the policy for this development,” he added.

“The purpose of this Summit is to gain critical insight from key industry stakeholders, and to discuss the establishment of a policy to direct the way forward for Grand Bahama becoming the gateway for innovation and technology.

AG: Bahamas ‘riding behind competitors’ in financial services FROM PAGE 1 services sector, Mr Bethel said the Bahamas had been left exposed to sanctions and reputational damage because the former government had failed to execute this nation’s commitment to exchanging information via a bilateral approach.

Mr Bethel said: “I am informed reliably by those on the other side of the negotiating table that, for three years, the Government did nothing. We had to repair the reputational damage and the threatened sanctions because the PLP did nothing in the eyes of the OECD for three years after having gotten a bilateral commitment from them.

“It is absolutely unacceptable the condition in which the Bahamas was left by the former government; exposed and threatened on

every side. We have been addressing these threats.”

The Bahamas had previously agreed to implement the CRS via a bilateral approach that involved negotiating agreements on an individual, country-by country basis. However, the OECD and its developed country members steadily increased the pressure on the Bahamas to switch to the ‘multilateral’ approach, requiring this country to negotiate tax deals with allcomers at once.

The Bahamas was left further exposed by the decisions of Hong Kong, Panama and the United Arab Emirates to switch from the bilateral to multilateral approach, and the Government has now taken a policy decision to implement CRS by way of the Multilateral Convention on the Mutual Administrative Assistance in Tax Matters

(Multilateral Convention) on a non-reciprocal basis.

Mr Bethel said that, as a result, the Bahamas must “embrace new regulatory disciplines”, maintain full compliance with its international obligations and set the pace.

“The tradition of riding behind our competitors has caused incalculable reputational damage to our financial sector. It has led to ‘black’ or ‘grey’ list threats or listings. It has cased some degree of loss of correspondent banking relations due to the naming and shaming of the Bahamas, and the offshore pressure to stop banking in risky jurisdictions,” said Mr Bethel. “We have to repair reputational damage and have the political will to address the problem; to clean up any perceptions of any failings that may be out there about the Bahamas.”

Air, Sea Business Park as a logistics hub focusing on international air and sea transshipment; using the airport infrastructure to We must take advantage further develop the aviaof our proximity, our infra- tion industry and attract an structure, Hawksbill Creek overnight courier services concessions and available clearing hub; revitalising land. “This is the natural and promoting a dynamic policy to evolution from the indus- investment encourage high net worth trial sector in Freeport.”

Mr Thompson also persons to buy and develop reiterated the Minnis real estate; and promotadministration’s commit- ing Grand Bahama as an sanctuary; ment to creating a Grand eco-tourism Bahama Investment Pro- and facilitating the further motion Board to promote development of the medical the island as a place for tourism industry.

Mr Thompson said the business, local and foris fully eign direct investments. Government Among the Board’s specific aware of Freeport’s ecotargets are promoting the nomic struggles, and said

businessesand itself “are in the same fight”. “We are fighting for the same things.

In order for the Government to fix Grand Bahama we must unite Grand Bahama. We all must be work together for the common good,” he urged.

He pointed to the need to create an enabling environment that will serve as a stimulus for new entrepreneurial opportunities. An economic empowerment programme for micro and small businesses on Grand Bahama has been designed to facilitate their expansion, with key components involving training, funding, marketing and mentorship support.

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PAGE 4, Friday, October 13, 2017

THE TRIBUNE

Government not targeting the IMF’s $70m slash FROM PAGE 1 the Government - rather than the private sector

- “the major employer” and job creator, while placing an ever-increasing burden on Bahamian

taxpayers and the “productive sector” to finance a bloated public service.

Mr Turnquest said reversing this situation was among the Government’s top priorities, but any civil service downsizing would be done “organically” by not replacing nonessential positions when staff leave or retire.

The International Monetary Fund (IMF), in its Article IV report, had recommended that the Government could achieve more than $200 million in Budget savings through a combination of reducing the civil service wage bill to its 2005-2016 average; requiring public servants to contribute to their own pensions; and cutting subsidies to state-owned corporations by a sum equivalent to 1.25 per cent of GDP. The Fund targeted wage bill savings equivalent to 0.8 per cent of GDP, or just below $70 million, and its recommendation set off alarm bells among many Bahamians and public sector workers, who feared instant - and widespread - redundancies if the Government adopted its suggestions.

Mr Turnquest, though, yesterday pledged that civil service cuts would first be sought through “natural attrition” rather than forced lay-offs, adding that the Government had set no savings target.

As for state-owned enterprises (SOEs), he said the Minnis administration had told them to focus on supply-side solutions and become more efficient, rather than impose

“dramatic rate increases” on Bahamian consumers to cover their costs.

“At the end of the day I don’t know that it’s going to be $70 million in cuts,” the Deputy Prime Minister told Tribune Business, when asked if the Government planned to follow the IMF’s recurrent spending reduction ‘road map’.

“We do intend to make the system more efficient and more affordable. We hope to do that through natural attrition, and that’s our focus.”

Mr Turnquest, speaking from Washington DC where he is attending IMF and World Bank annual meetings, said the Government was following its own fiscal consolidation plan, rather than being dictated to by the IMF and credit rating agencies.

“The Government of the Bahamas has outlined a plan for the IMF and Moody’s, and will do the same when Standard & Poor’s comes,” he added.

“We’re not going to be reactive with our response to any of the agencies.

“We’re going to be disciplined in our approach and follow our plan..... It’s one where we recognise we have to keep recurrent expenditure down at a sustainable level, because at the current trajectory it’s unsustainable, and that’s why the debt has skyrocketed.

“We will take corrective measures, but will not take any decision that hampers the economy or the creation of opportunities and jobs.”

Mr Turnquest’s comments are a recognition that the Government will ‘bite off more than it can chew’ if it tries to rightsize the public sector in

one go, as this would produce a significant increase in unemployment and cut disposable incomes/spending power, with negative implications for the economy and Bahamian society.

The IMF’s Article IV report blamed the Christie administration’s “lax spending controls” prior to the May 10 general election for the spike in recurrent spending, which comprises the Government’s fixed costs - wages, benefits and rents.

The Deputy Prime Minister yesterday said this had resulted in an unhealthy ‘role reversal’, where the Government had taken over from the private sector as the main economic growth engine.

“With the lack of growth, and the inability of the private sector to absorb the capacity in the system, the Government has been absorbing that over the past five years to keep the unemployment rate artificially down,” Mr Turnquest told Tribune Business.

“The funnel is upside down. The public sector is the major employer and being funded by the lower end, the private sector. It’s unsustainable, and we have to figure out how broaden the base through the private sector so that we relieve the burden from the average citizen and productive sector.”

He added that the Government was assessing how to “graduate” veteran civil servants from the public service once they reached retirement age, in a bid to enable the recruitment of younger workers and to allow the private sector to benefit from their skills.

“It is intended that it will be very organically done,” Mr Turnquest said,

“meaning that as civil servants reach time and age, they will be graduated out of the system and it will build capacity with the private sector.”

He added that the Government was also examining the issue of public servants contributing to their retirement income, which would replace the current ‘pay as you go’ defined benefit scheme that is 100 per cent financed by the taxpayer.

And, with some $429 million in subsidies being provided to state-owned enterprises (SOEs) during the 2017-2018 fiscal year, Mr Turnquest said all had been “challenged” by the Minnis administration to “wean themselves off the public purse”.

“One of the challenges we’ve put out to the SOEs is that they must come up with plans that ensure they are not dependent on the public sector for support,” he told Tribune Business.

“We want to look at ways to have cost recovery at these entities without creating dramatic increases in rates. They have to become more efficient.”

Mr Turnquest continued: “We’re saying to them that you have to wean yourself off the public purse, otherwise we will have to make some decisions about whether to privatise, and take them to a private sector mentality. Become competitive and efficient engines of growth.”

He added that “sacrifice” and support from the Bahamian public were vital to turning the country’s fiscal and economic situation around, and said: “I’m confident better days are ahead of us if we can impose the kind of financial discipline every family has to go through.”

COMMONWEALTH OF THE BAHAMAS IN THE SUPREME COURT Common Law and Equity Division

2015 CLE/GEN/1054

IN THE MATTER of an Indenture of Mortgage made the 15th day of October, A.D. 2009 between Leonette Darelus and Finance Corporation of Bahamas Limited AND IN THE MATTER of The Mortgages Act, Chapter 156 of the Revised Laws of the Commonwealth of The Bahamas BETWEEN FINANCE CORPORATION OF BAHAMAS LIMITED Plaintiff AND LEONETTE DARELUS TO:

Leonette Darelus

Defendant

TAKE NOTICE that: 1. An Order and a Judgment have been filed against you on the 22nd day of September, A.D. 2017 (the “Order” and the “Judgment” respectively), in the Supreme Court of The Bahamas in Action No. 2015/CLE/gen/01054 by Finance Corporation of Bahamas Limited, the Plaintiff herein.

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2. By the Order, the court ordered that you do by no later than the 30th day of August, A.D. 2017 deliver up to the Plaintiff vacant possession of ALL THAT piece parcel or lot of land designated as Lot Number Eleven (11) situate in the Subdivision called and known as “Springfield Estates”, AND THAT the Plaintiff be at liberty to enter judgment against you for the amount claimed in the Originating Summons together with interest and costs, such costs to be taxed if not agreed.

3. By the Judgment, it was adjudged that you pay to the Plaintiff the sum of $83,329.36 due under the Mortgage Loan together with interest at the contractual rate up to the date of judgment and there after interest at the rate of 6.25% per annum until payment and costs to be taxed if not agreed.

4. The publication of this Notice constitutes service of the said Order and Judgment, copies of which may be obtained from the Supreme Court Registry, Ground Floor, BAF Financial Centre, Marlborough Street, Nassau, The Bahamas during normal business hours.

Dated 13th October, A.D. 2017 HIGGS & JOHNSON Chambers Ocean Centre Montague Foreshore, East Bay Street Nassau, New Providence, The Bahamas Attorneys for the Plaintiff

THE TRIBUNE

Friday, October 13, 2017, PAGE 5

DEBT

FROM PAGE 1

ceasing the annual $3 million bond interest payments the Government has been making on the BDB’s behalf - a practice that appears to have been in existence for seven years.

“What we are aiming to do is to effectively recapitalise the bank by seeking to convince our long-term lenders to restructure their facilities,” Mr Nairn told Tribune Business.

“For example, we are seeking to persuade the Government to convert the bank’s indebtedness to it into equity. We’re asking the Government to convert $21 million or so that would

have arisen from the annual payment of $3 million or so for bond interest.”

The Bahamian taxpayer, via the Public Treasury, has been forced to finance interest payments to the bondholders as a result of the BDB’s weak financial performance, which has left it unable to meet its obligations.

Mr Nairn yesterday confirmed the BDB had begun discussions with NIB and other bond holders to restructure its debt.

While he declined to confirm specifics, this is likely to involve extending the maturity/principal repayment date and lowering the interest rate coupon.

This would reduce the BDB’s debt servicing costs,

and the chairman told Tribune Business: “We do have a significant bond obligation, which today stands at $43 million. “They are held

by NIB and others. We have commenced discussions with them with respect to restructuring. We’re certainly not asking them to do write-offs of any of it, but we do need some breathing room so we can grow the performing loan book.”

Asked whether the BDB could achieve the Deputy Prime Minister’s three-year ‘self-sufficiency’ target, Mr Nairn replied: “We think that it’s possible.

“Frankly, Neil, with a lot of the plans we have, everything turns on our ability to restructure our long-term debt. That’s the major thing

that needs to happen, and if that doesn’t happen, and we can’t restructure, then the answer is that’s not achievable. If we are able to restructure, there’s a very good possibility we will be able to do it.”

Mr Nairn declined to give a precise ratio for the BDB’s current non-performing loans, saying: “I do know what it is. I’m almost hesitant to tell you. Let me say that the non-accrual rate is in excess of 60 per cent.”

In an earlier address to the Rotary Club of West Nassau, Mr Nairn said the BDB was unable to fulfill its mandate - financing the entrepreneurial dreams of Bahamians - due to a combination of high

loan delinquencies, high indebtedness and undercapitalisation.

“Having amassed significant losses over the decades, the bank has essentially been in a holding position, primarily because it lacks the liquidity to engage in meaningful new lending,” he added.

“The bank is saddled with debt and an extremely high level of non-performing loans. “The reality is that even if the bank never had a single bad loan, it still would have been unprofitable. That is so because the bank was undercapitalised from the beginning, and was/is operationally inefficient - in part because of a lack of economies of scale.”

Mr Nairn added that the BDB’s long history of high

non-performing loan levels was “no secret”, and the Board had little choice but to secure all loan collateral pledged by delinquent borrowers if it was to engage in new lending.

“The bank is patently aware of the need to institute measures that would minimise non-accrual loans,” the chairman said.

“With respect to existing non-accrual loans, the bank has embarked on an initiative designed to liquidate 100 per cent of collaterals held for nonaccrual loans in the shortest possible time.

“Those measures are essential so that the bank might recover some of its capital for the purpose of new advances.”

BDB CHAIR: ‘DAYS OF $50K HAND-OUTS OVER’ FROM PAGE 1 economy and its entrepreneurs as there were precious few financing sources for Bahamian start-ups.

Tying the commercial bank withdrawal from start-up lending to a lack of growth and economic diversification, he added: “We’ve not been able to support entrepreneurs. They’ve had no real access to funding.”

Pointing out that developed world nations such as Canada, as well as the likes of Jamaica and Barbados, all have development banks, Mr Nairn said the BDB planned to focus on lending to entrepreneurs in the energy, tourism, cultural, agriculture, marine, technology and natural resources sectors.

“They’ve got significant foreign currency earning potential,” he told Tribune Business. “We believe the barriers to entry are very, very low, and we think they can generate a significant amount of new employment.”

Mr Nairn said the BDB had partnered in the development of ecotourism in the southern Bahamas, starting with Inagua. “The objectives of the programme include increasing sales and promotion of the selected island

as an eco-tourism centre, increasing overnight tourist arrivals sufficient to deliver occupancy rates above 60 per cent for participating guesthouses, and establishing 15-20 small tourist-related businesses that provide activities for guests,” he added.

Given the restrictions imposed by the BDB’s own Act, Mr Nairn said it also planned to target the agricultural distribution and processing sector, arguing that this would potentially relieve the Government of responsibility via its packing houses and produce exchanges.

“A business that improves distribution, meets the quantity and quality needs of the marketplace, pays farmers in a timely manner, effectively allowing farmers to do what they are best able to do, farm, would do wonders for our economy,” the BDB chairman added.

Mr Nairn said the BDB had also worked with the Inter-American Institute for Cooperation on Agriculture (IICA), Prime Minister’s Office on Grand Bahama and the Department of Cooperatives to create the Youth Apiculture Development Programme.

“This programme is intended to create 20 apiarist entrepreneurs per

LEGAL NOTICE

NOTICE

HATON WEALTH MANAGEMENT LTD. (In Voluntary Liquidation) Notice is hereby given in pursuance of Section 138 of The International Business Companies Act, 2000 (as amended) that the Shareholder of the above-named company by Resolution passed on the 11th day of October 2017 resolved that the company be wound up voluntarily forthwith and that the Liquidator is Mr. Bennet R. Atkinson of Ronald Atkinson & Co., Chartered Accountants, Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas.

All persons having claims against the above-named company are requested to submit particulars of such claims and proofs thereof in writing to the Liquidator, Mr. Bennet R. Atkinson, Marron House, Virginia and Augusta Streets, P.O. Box N-8326, Nassau, Bahamas, not later than the 13th day of November 2017, after which date the books will be closed and the assets of the company distributed.

Dated the 11th day of October 2017.

Bennet R. Atkinson Liquidator

year over the next three years, with a view to creating a minimum of 100 jobs for persons between the ages of 16- 25 while substituting imports or generating exports of $4 million in product value, and establishing at least three commercially viable apiary cooperatives in Grand Bahama,” he explained.

Mr Nairn said the BDB was also developing a three-year strategic plan in a bid to become profitable within that timeframe, and is seeking to become more transparent and accountable via regular public updates starting next month.

He added that the BDB was well-placed to administer public-private partnership (PPP) arrangements on the Government’s behalf, serving “as an intermediary between the.... sectors with respect to identifying potential PPPs, locating various sources of funding and initial and long-term administration”.

“We think that’s an exciting opportunity,” Mr Nairn told Tribune Business of PPPs. “We think that we can perhaps identify opportunities for the Government, put the two sides together and actually administer them as well.

“We think that would do

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, PAUL LENNOX ROLLE; of Malcom Road West #43; in Golden Gates #1 P. O. Box N-8048 intend to change my name to YAGON COSHAN TAYLOR. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P. O. Box N-742, Nassau, New Providence, The Bahamas no later than thirty (30) days after the date of publication of this notice.

NOTICE

NOTICE is hereby given that CLEMENT VILCIN of Charles Vincent Street, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 13th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, SONIA ADDERLEY, of #4 Joe Farrington Road, P. O. Box FH-14584, Mother of DEANDRA DEVANIQUE ADDERLEY a minor intend to change her name to DEANDRA DEVANIQUE BAIN. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, New Providence, The Bahamas no later than thirty (30) days after the date of publication of this notice.

TO ADVERTISE TODAY IN THE TRIBUNE CALL @ 502-2394

NOW HIRING! SOUS CHEF Cruise Line with Private Island in The Berry Islands is seeking a Sous Chef to work on the Cay. Applicant must have at least 6-8 years experience cooking and preparing food in a 4 or 5 star hotel, restaurant or high volume food service facility. Applicant must have extensive knowledge of food handling procedures with regard to HAACP and public health standards and must have a demonstrated aptitude for financial aspects of a food operation. Applicant should have the ability to manage an international staff in a positive and productive manner.

Written references from former employers are required.

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wonders, and we are wellsuited for that. As a bank we have people who can assess these things.

“We’ve got lenders, financial people who can

make the assessment, follow up with both sides and, on a long-term basis, obtain reports and liaise with lawyers. We’ve got the infrastructure for it.”

NOTICE

NOTICE is hereby given that DEVINSON CADET of Carmichael Rd., New Providence, 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 6th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that SELAVIE NANNO of Lewis Street, New Providence, The Bahamas is applying to

the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 13th day of October, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

LEGAL NOTICE

PAGE 6, Friday, October 13, 2017

THE TRIBUNE

CENTRAL BANK BACK IN COMPLIANCE ON GOV’T DEBT LIMITS FROM PAGE 1

Government through selling its Bahamas Government Registered Stock (BGRS) holdings to private investors through the secondary market, which has reduced its holdings by $80 million since its creation in 2017.

And John Rolle, the Central Bank’s governor, last night confirmed that

“at least” $150 million of $200 million in ‘bridge financing’ - extended to the Government in June 2017 via Treasury Bills - will be repaid “in the short term”.

The Central Bank was responding after the IMF’s Article IV full report disclosed that it breached its legal limits when it increased its government debt holdings in the wake of Hurricane Matthew.

“Following the

passage of Hurricane Matthew, the Central Bank of the Bahamas increased its holdings of long-term government bonds to $200 million, about 2 per cent of GDP, breaching statutory limits,” the Fund said.

“However, Central Bank’s main target - on maintaining a level of reserves of at least 50 per cent of the monetary base - continued to be met, albeit with smaller margins

than in the past. [The IMF] noted that increases in these holdings should be reversed to ensure compliance with statutory limits.”

The Government and Central Bank, in response, argued that the limit was only broken in extraordinary circumstances - namely to assist the Christie administration with “emergency financing” in Matthew’s wake, so that it

MARKET REPORT THURSDAY, 12 OCTOBER 2017

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

BISX ALL SHARE INDEX: CLOSE 1,962.75 | CHG 18.00 | %CHG 0.93 | YTD 24.54 | YTD% 1.27 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.96 0.15 5.83 8.60 6.30 4.20 14.49 2.59 1.60 6.00 10.00 11.00 3.80 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 3.15 10.00 2.18 1.40 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 1.26 0.15 3.92 8.60 6.10 4.06 10.01 2.58 1.40 6.00 9.75 7.08 3.80 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 100.00 100.00 100.00 109.56 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.28 17.43 9.09 3.65 1.26 0.15 3.92 8.60 6.10 4.20 10.01 2.59 1.40 6.00 9.75 7.08 3.80 7.01 12.50 10.00

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.14 0.00 0.01 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

109.72 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.16 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

1,500

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$ 0.444 0.932 -0.223 0.540 -1.373 0.000 -0.857 0.611 0.574 0.562 0.582 0.102 0.392 1.217 0.743 0.575 0.310 -0.668 0.543 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 0.050 0.290 0.450 0.000 0.113 0.140 0.600 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 9.6 18.7 N/M 6.8 N/M N/M -4.6 14.1 10.6 7.5 17.2 25.4 3.6 4.9 13.1 12.3 12.3 -10.5 23.0 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

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

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

Referring to the 20 per cent ratio ‘cap’ on medium and long-term government debt holdings, the Central Bank conceded: “This ratio has trended very close to the ceiling for a number of years, before the Bank took action in 2016 to begin the process of achieving a permanent reduction in the measure and in total holdings of debt over time, irrespective of maturity.

“Indeed, an initial restructuring of the Central Bank’s balance sheet resulted in a reduction in longer-term bond holdings in June 2016. This transaction, with institutional investors, swapped $25 million of long bonds for shorter-term instruments.

“Afterwards, the programme of secondary sales was launched in August 2016, resulting so far in total sales of $80 million off the Central Bank’s balance sheet. At least another $150 million is destined to be repaid by the Government in the short-term under the terms of the bridge financing that was provided during 2017.”

Explaining how its plans were blown off course temporarily, the Central Bank said: “This goal notwithstanding, it is important to note that following the passage of Hurricane Matthew in October 2016, the Bank participated in the Government’s subsequent $150 million hurricane relief facility, investing in a $20 million Bahamas Government Registered Stock (BGRS) issue, while the commercial banks provided $130 million in financing via a long-term loan.

“This transaction, when added to the Bank’s prior holdings of Government securities, contributed to the ratio of Government securities to demand liabilities rising marginally above the 20 per cent ceiling for a few months during 2017.”

The Central Bank said consultations with the IMF had resulted in the development of a tougher legal framework, which would impose limits on the total value of government debt that it can hold. “The present limits on holdings of government debt, referenced by the IMF, are less comprehensive than those which a new governance framework for the Central Bank would introduce,” it added. “The current operations targets for Central Bank are also more comprehensive, and are geared towards strengthening the overall backing for the Bahamian dollar.”

LEGAL NOTICE

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%

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% 8.57% 5.69% 2.32% 3.57% 4.83% 4.62% 0.00% 2.97% 2.00% 4.80% 0.00%

could provide disaster relief and infrastructure repairs.

The Central Bank, moving quickly to respond to Tribune Business’s article, yesterday said its own Act limited government debt holdings with maturity terms of five years or more to 20 per cent of demand liabilities. These are “the stock of Bahamian currency issued” by the Central Bank, plus deposits placed with it.

The regulator admitted that its holdings had “trended very close” to this ceiling for several years, but it acted in 2016 to achieve “a permanent reduction” in government debt holdings regardless of maturity.

However, these plans were temporarily thrown off course by Hurricane Matthew, with the Central Bank’s $20 million bond investment - part of the $150 million in emergency financing raised by the Christie administration - taking it “marginally” beyond the 20 per cent limit for several months earlier this year.

Emphasising that it was now back in compliance with the Central Bank of the Bahamas Act, the regulator said in a statement: “In light of the Bank’s ongoing efforts to reduce its exposure to Government debt by, inter alia, selling certain tranches of its medium and long-term securities’ holdings to the public, the statutory ratio has been gradually reduced to 12.52 per cent at the end of September 2017.”

Mr Rolle confirmed last night that the 12.52 per cent referred to the Central Bank’s medium to longterm bond holdings, with maturities of five yearsplus, and did not include short-term government paper.

The Central Bank, though, added that it was not unusual to provide the Government with financing given that it was one of its bankers.

“The Central Bank continues to focus on reducing total lending to the Bahamas Government in a comprehensive fashion, both in co-ordination with the Ministry of Finance and through direct engagement with the investor community,” it added.

“This addresses the legal constraint on holdings of medium and longer term debt issued by the Government, which is stipulated in the current Central Bank Act. It also addresses holdings of other debt of a shorter-term nature.”

NORBERT ESTATE INC. Company No. 554222 (In Voluntary Liquidation) NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that NORBERT ESTATE INC. is in voluntary liquidation. The voluntary liquidation commenced on 9th October, 2017 and Artur Muller of Bergweg 3, 3911 VA RHENEN, Netherlands, has been appointed as the Sole Liquidator.

Dated this 10th day of October, 2017 Sgd. Artur Muller Voluntary Liquidator

THE TRIBUNE

Friday, October 13, 2017, PAGE 7

PAGE 8, Friday, October 13, 2017

THE TRIBUNE

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