12032020 BUSINESS

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THURSDAY, DECEMBER 3, 2020

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IMF: Four-year haul on COVID recovery

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

HE Bahamas faces “anything but a V-shaped recovery” from COVID-19 with the International Monetary Fund (IMF) yesterday warning a four-year haul to regain economic output lost in 2020 lies ahead.

The Washington DC based fund, in a statement on its annual Article IV consultation with The Bahamas, also further slashed its projections for the Bahamian economy’s performance this year and

• Lost GDP not recovered until 2024 • Economy to shrink 16.2% this year • 2021’s 2% ‘anything but v-shaped’ in 2021 as it branded this nation “one of the hardest hit countries in the Caribbean” due to more than 7,500 COVID-19 infections.

Its latest forecast increased the severity of The Bahamas’ real gross domestic product (GDP) shrinkage to -16.2 percent for 2020, as opposed to its last -14.8 percent contraction estimate, while further slashing 2021’s economic growth forecast to a

relatively tepid two percent.

The latter revision represents a further cut, after the IMF previously revised its projections for next year’s Bahamian GDP growth from 6.7 percent to 4.6 percent as recently as October.

With The Bahamas’ shortterm rebound prospects more than halved, and a further $269m slashed from 2021’s forecast economic output, this nation faces a longer and harder recovery

than initially thought.

The IMF yesterday forecast that Bahamian GDP will only recover to preCOVID-19 levels come 2024, meaning that this nation likely faces a fouryear climb at least to dig itself out of the hole created by the worldwide pandemic.

That is more conservative than the one given by Central Bank governor, John

SEE PAGE 5

IMF calls for harsher Bahamian austerity

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE International Monetary Fund (IMF) yesterday warned that the government must impose harsher austerity measures on the Bahamian people to hit its 50 percent debt-to-GDP target by 2030.

Unveiling its statement on recent Article IV discussions with the government and private sector elements, the fund argued that the government’s medium-term fiscal framework was inadequate to bring its finances back in line with the goals set out by the Fiscal Responsibility Act. That law requires the government to bring the debt-to-GDP ratio, which measures the amount it owes as a percentage of the Bahamian economy’s size,

• Govt plan won’t hit 50% debt-to-GDP by 2030 • Hints at new/increased taxes, spending cuts • Says public must be informed so can ready to a maximum of 50 percent and maintain it there. However, the combined fall-out from COVID-19 and Hurricane Dorian has sent this ratio racing off in the opposite direction, with the IMF forecasting it will exceed 85 percent this fiscal year.

This backs Tribune Business’s article earlier this week, as calculations suggest debt-to-GDP is already “upwards of 90 percent” due to the economy’s COVID-induced contraction, and the IMF - using heavily coded language said the government needed to go further with austerity plans once The Bahamas

‘No escaping’ tax hikes as IMF pushes income levy

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN economist yesterday said there was “no escaping” new and/ or increased taxes to pay for COVID-19’s debt blow-out as the IMF again pushed an income tax solution.

Rupert Pinder, who lectures at the University of The Bahamas (UoB), told Tribune Business that while he backed the fund’s rationale for such a levy any reform had to be “comprehensive and not done in a piecemeal fashion”.

He spoke out after the IMF, in its statement on the

Article IV consultation with the government and elements of the private sector, reiterated previous arguments that some form of income taxation would be fairer and more equitable than the present consumption-based regressive system that The Bahamas enjoys now.

“Income taxation can help achieve a more equitable income distribution,” the Fund said, barely disguising its desire to prod The Bahamas in this direction. “Tax policy and administration measures are essential to a robust consolidation.

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Oil explorer: Just 20% of opponents from The Bahamas

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE oil exploration battle further heated up last night after Bahamas Petroleum Company (BPC) sought to discredit an activist petition by asserting just 20 percent of signatories were local.

The explorer, which almost certainly faces a legal challenge to its bid to start exploratory drilling on December 15, said in a statement that research it commissioned by a “sophisticated data analysis” firm suggested that the Our Islands, Our Future

SIMON POTTER coalition was using overseas signatories to skew the results of a petition that has attracted more than 50,000 backers.

BPC added that, in so doing, it was “trying to turn

SEE PAGE 7

has rebounded from the pandemic to bring order to its own finances.

This would inevitably involve new and/or increased taxes, spending cuts or a combination of both to bring the annual fiscal deficit down from the $1.327bn projected for 2020-2021 and thus slow, then reverse, the persistent increase in a national debt that has soared by $1.5bn over the past 12 months.

Warning of grim times ahead for Bahamian households and businesses, the IMF said: “Achieving the Fiscal Responsibility Act targets over the medium

term will require additional fiscal effort......

“Given the significant increase in public debt, postponing the achievement of the debt target by another two years in response to the pandemic would be appropriate. However, achieving the debt target of 50 percent of GDP by the beginning of the next decade will require significant additional fiscal effort compared to what is planned in the mediumterm budget framework.”

The IMF, whose “significant additional fiscal effort” phrase effectively means

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Extra $225m raise ‘signals confidence’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

THE government last night said it exploited “more favourable market” conditions to “re-open” its recent $600m bond and raise a further $255m in US dollars at a lower interest rate.

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that the government will “take” any opening to raise necessary deficit financing where it can achieve “optimal terms” amid the COVID-19 pandemic’s economic fall-out.

Disclosing that the $225m issue received “close to $600m of offers”, or more than three times’ the amount sought, Mr Johnson said the ability to place it at an eight percent interest yield - a rate some 125 basis points lower than the 9.25 percent obtained just over a month earlier - “signals the credit markets have confidence in The Bahamas” and its economic re-opening.

The eight percent rate is still higher than the six percent paid by The Bahamas on its last pre-COVID bond offering in late 2017, and before the latest spate of creditworthiness downgrades by Moody’s and Standard & Poor’s.

Tribune Business calculations show that taxpayers will be paying $18m in annual interest (debt servicing) costs on the latest $225m borrowing at eight percent, as opposed to $13.5m at the old six percent rate. This equates to an additional $4.5m per year in interest payments, or $54m over the $225m tranche’s lifetime, until it matures some 12 years later in 2032.

Those figures assume the $225m is not subsequently refinanced at a lower rate, and does not account for the impact of debt principal repayments that begin in

MARLON JOHNSON year ten. Nevertheless, backof-the-envelope calculations show that total interest payments on the new tranche will total $216m - almost as much as the principal amount itself.

“As always, we recognise that we have a borrowing requirement and where the market is favourable and we find an opportunity we look to take advantage of it,” Mr Johnson said of the rationale for returning to the international capital markets so quickly.

“That’s essentially what this was. The markets have been receptive to the progress of the economy, and opening of the economy, and the [$600m bond] has been trading well. We re-opened that bond and accessed some additional funding. We were able to secure a premium over par, and secure $240m of proceeds on $225m worth of bonds.”

The Ministry of Finance, in a statement, said the market’s “rally” over the $600m bond had enabled it to return to the market and craft an “order book that was multiple times oversubscribed with more than 75 global investors participating in the final transaction”.

“The notes priced above par, at 106.783 percent, thereby generating gross proceeds of approximately $240.3m for the government (excluding accrued and unpaid interest), compared with the $225m value of the notes,” it added. The terms

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PAGE 2, Thursday, December 3, 2020

THE TRIBUNE

ACTIVISTS: BAHAMAS NEEDS MORE FROM CRUISE TOURISM

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net ENVIRONMENTAL activists yesterday said The Bahamas needs to reap more money from the cruise ship industry when it resumes sailing as they launched their “rethink” campaign for the sector.

Sam Duncombe, the

reEarth president, speaking at a webinar for Rethink Cruise Tourism, a campaign launched by the Global Cruise Activist Network, said in relation to The Bahamas: “In terms of getting the message out, I think we have to look at the economics of what the cruise industry brings to the country.

“Seventy-five percent of our visitors are cruise

visitors, but they only represent ten percent of the tourism dollar. So we need to be getting more money.

We need to stop them polluting. The whole industry has to reform, and we’re basically giving them what they need to do on a platter and telling them this is what needs to happen so we can all work and live together.”

When it came to rolling

out the campaign in The Bahamas, Mrs Duncombe added: “In terms of rolling out the campaign, we will be posting it across all social media and hoping to engage more people in terms of what the campaign actually means, looking at the principles and reasons why people should rethink cruising.

“More dialogue is definitely needed with those companies so that they can actually understand the impact that these ships

have on our health, on our environment on our social fabric.”

Mrs Duncombe added that the petition opposing Disney Cruise Line’s project at Lighthouse Point, on Eleuthera’s southern tip, presently stands at 393,000 and continues to grow. “I think that as a country that has relied on cruise ships tourism for many, many years, I think it’s it’s more about bringing them in and getting them to do what we

need them to do and what we want them to do,” she added.

“We are deeply concerned about Disney’s plans for a massive cruise ship port at Lighthouse Point that threaten this unique natural place treasured by generations of Bahamians and visitors from around the world. This is not the place where an environmentallyresponsible corporation would choose to develop a massive cruise ship port.”

EXUMA BUSINESSES SUFFER LOCKDOWN HIT

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net

SOME Exuma businesses yesterday revealed that the island’s recent COVID-19 restrictions have cost them thousands of dollars prior to this week’s easing.

O’Brian Strachan, owner/ operator of Strachan’s Service Station, said no visitors had wanted to travel to the island while it was under a weekend lockdown and early evening curfews during the week. He added: “I had a client who wanted to come in for ten days.

Because of the weekend lockdown, they cancelled ten days in a hotel. So that’s ten days in a hotel gone.

“I had a boat charter for two days, that was another $6,000 I lost. So if you look at it, if two people were willing to spend roughly $12,000 for ten days, if I had ten people that all cancelled like those two, can you imagine what I have lost?

“I hope now that after a few weeks, and we get the word out, that people will start to come, but I think the removal of some of the restrictions is a step in the right direction.”

The prime minister on Monday lifted the weekend lockdown for Exuma, and narrowed the daily curfews to between 10pm to 5am in a bid to prevent social

gatherings and parties that trigger a fresh COVID-19 wave.

However, the island’s Fish Fry destination remains closed, while restaurants have been permitted to offer outdoor dining only.

Restrictions on the size of gatherings at weddings, funerals, church services and receptions also remain in place.

Ricardo Morley, Shop Rite Mart’s owner/operator, noted that the daily curfew remains in place despite the start date having been pushed back to 10pm.

He added: “As far as the lockdown was concerned, we’ve faired pretty good.

The stores have been functioning. The people for the most part have been abiding by the protocols, doing their social distancing and wearing their masks, and we had no problems maintaining an order.”

Mr Morley said commerce would be little impacted by the change in curfew hours because it “never stopped”. He added: “Ten o’clock now would make it even better for us because then we don’t have to have everybody rushing around for the five o’clock lockdown on the weekend.

It will spread out the activity and people will have more leeway.”

Ramon Darville, Darville Lumber’s general manager,

agreed that it made sense to keep bars and the Fish Fry closed otherwise “people will not stop gathering and they won’t stop partying”.

“It’s nice to be able to, you know, leave your house until 10pm at night, but when you have people gathering there is very little that one can do,” he added.

“I don’t think they should open up the bars. I’m sorry.

I know people need to socialise, but I don’t think things will work like that.

“I’d like to be able to go out in the boat on the weekends and stuff like that. I have children that came down that don’t come here often, and only once a year, and I haven’t been able to really do anything with them. But I don’t mind because we could find stuff to do at home.”

Mr Darville said the lack of COVID-19 testing onisland made him feel uneasy over whether case numbers have actually gone down.

“You don’t hear too much from the government on it,” he added. “You don’t know what’s going on. I know in our company what we do is once a week we have a paper made up that has all the main symptoms of COVID-19. We were on each staff member, and had them answer the questions truthfully” to ensure they were not carrying the virus.

Freeport revival body moving on ‘action plan’ THE Grand Bahama Port Authority (GBPA) appointed committee says it plans to use feedback from 3,162 responses to create an “action plan” for the revival of Freeport’s moribund economy.

Launched by the GBPA, the Revitalisation and Economic Expansion of Freeport (REEF) Committee said the 24-day consultation exercise involving local businesses and people had set out “key priorities” to be addressed.

“The robustness of responses to REEF’s consultation exercise, combined with the broad representation of the REEF committee itself, has resulted in actionable, relevant and impactful content that we can really work with,” said Robert Adams, consultant attorney at Delaney Partners and REEF Committee lead.

“The results are a reflection of what the people of Grand Bahama care about, are concerned about, and want to see progress on.”

The major issues identified in the consultation were support for diversifying the economy away from over-dependence on tourism, “and providing enhanced opportunities for investment in agriculture, maritime and logistics, light industry, healthcare and

education sectors”.

There was also a “need for measures to protect Freeport from storm surge, flooding and other impacts of hurricanes”, as well as the creation of “worldclass healthcare facilities to address local needs and, in part, support medical tourism”.

Business funding, training and mentoring, and protection from “unfair competition” provided by foreign-owned entities, and the creation of “significant new entrepreneurial and better-quality employment opportunities” were also major issues to be addressed.

Support for the ‘blue economy’, “which refers to the sustainable use of ocean resources for economic growth, improved livelihoods and jobs while preserving the health of the ocean ecosystem”, was also cited by many respondents as was the need to extend the city’s real property tax and other exemptions, and waiving work permit requirements for expatriates visiting Freeport for business.

“The thoughtful, invaluable input received from a broad spectrum of Freeport’s residents and business owners has provided the committee with a true representation of

Grand Bahamians’ perspectives,” said Sarah St. George, GBPA’s acting chairman.

“Over the past several weeks, members of the REEF Committee have met with the government to discuss proposed amendments to environmental regulation and enhancements to the investment policy to enable ease of doing business, among other topics.

The recommendations from the public are complementary to the government’s priorities, so we know there is significant support behind these pivotal goals.”

The 24-member REEF Committee now includes representation from the Grand Bahama Chamber of Commerce (GBCC) in addition to a broad range of Freeport’s business leaders.

“Critical next steps for REEF are to review and discuss the results of the public consultation exercise in detail, and draft action plans that will move us toward our goal of a stable, sustainable and financially robust island,” added Lawrence Palmer, the Chamber’s second vice-president.

“As we progress, we will continue to keep the public informed. Our avenues for feedback remain open, and all input from residents is given due consideration.”

Happy Meal

THE TRIBUNE

Thursday, December 3, 2020, PAGE 3

Private sector hails curfew’s push back

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Chamber of Commerce’s chairman yesterday said the easing of nighttime COVID-19 curfews will enable businesses to properly serve customers as the economy moves into the Christmas season.

Khrystle RutherfordFerguson told Tribune Business in a statement: “With businesses still reeling from the impacts of COVID-19, and the holidays upon us, the further loosening of restrictions by extending the curfew to 10pm means that the

Commission gives new warning to Bahamians THE Securities Commission yesterday warned Bahamians against joining a group it alleged is operating as a multi-level marketing or pyramid scheme despite lacking the necessary regulatory approvals.

The capital markets regulator said Cash Forex Group was “targeting citizens of The Bahamas via numerous” Internet Zoom meetings to persuade them to invest money with the scheme, and encourage others to do likewise, even though it was operating illegally in violation of this nation’s laws.

Pointing out that neither Cash Forex Group, nor its agents and consultants, were registered with the Securities Commission to conduct such business as required by Bahamian law, it added that the group employed several names including Cash FX Group, Cash FX Group S.A, CFX and CFX Group.

“The commission has determined that Cash Forex Group is a multi-level marketing (MLM) entity using the website https://

business community will be able to operate longer hours and service their customers in a manner that will not encourage crowding.

“The BCCEC (Chamber) welcomes any opportunity for businesses to operate in a way that will meet the demands of the consumer. Christmas time has historically been a particularly busy time for many businesses, and generates revenues to take them into the New Year.”

Mrs Rutherford-Ferguson added: “Greater revenues lead to job creation and sustainability, which can boost recovery efforts. It is important

to make the connection between shopping locally, job creation and economic recovery, as every dollar spent locally impacts our economy in a positive way.

“Towards that end, the BCCEC has partnered with the Rotary Club of South-East Nassau and Cable Bahamas Business Solutions in a shop local campaign, which incentives consumers to patronise local businesses. This is a continuation and expansion of the BCCEC’s efforts last year.”

While acknowledging the continued downward trend in positive COVID19 cases, she added: ”The

business community has demonstrated its commitment to implementing the protocols, and we want to highlight those efforts.

The BCCEC would like to see this continue, and we encourage the continued adherence to the safety protocols by consumers and businesses.”

Dwayne Higgs, WHIM Automotive’s general manager, said of the curfew’s push back to a 10pm start: “I think it’s long overdue.

We can now open until 5pm. Previously we were closing at 4pm to give staff time to do personal things before getting home for 6pm.”

He added that people can now “enjoy their weekends” without having to rush home to beat the curfew, but reiterated that the best way to beat COVID-19 is to wear masks, social distance and continually sanitise hands.

Mr Higgs, though, voiced concern for industries that are still closed under the government’s emergency orders, such as entertainment and gyms. He said: “There are businesses especially gyms- that are being forced into closing their doors. Evolve in Palmdale can operate their facility better than a food store can, but are not

cashfxgroup.com. There are several levels by which individuals may join the plan, the lowest being $300. Each level has a different percentile payout, with the larger pay-ins paying a greater percentile of any purported profit earned,” the Securities Commission said.

“The Commission is aware that Cash Forex Group, via Zoom presentations, continues to inform of entering into contracts with Bahamian citizens to trade on their behalf without having a license from the commission to do the same.”

The Securities Commission added that Bahamians were being told that the group’s “members or participants here in The Bahamas do not have to conduct trades themselves, as there are teams of professionals at Cash Forex Group who trade on their behalf, despite the fact that Cash Forex Group and its agents are not registered with the commission to trade for others”.

Other selling strategies employed, according to the regulator, are that “Cash Forex Group’s Bahamian clientele would earn 1 percent interest per day for five days of the week on money invested with Cash Forex Group.....

“Current Bahamian

participants have been encouraged, via Zoom meetings, to facilitate the signing up of new participants and their subsequent depositing of cash with Cash Forex Group, an act for which the facilitators are financially rewarded.”

The Securities Commission said regulators in the UK, Canada and Panama have already issued warnings about Cash Forex Group not being licensed to operate in their respective jurisdictions.

Multi-level marketing strategies can be pyramid schemes, which the Securities Commission has issued warnings about in the past.

Pyramid schemes are scams where promoters claim they can turn a small investment into large profits within a short period of time. In reality, participants make money solely by recruiting new participants into the programme.

The scheme gathers momentum until it crashes.

Fraudsters behind such schemes typically go to great lengths to make their programmes appear to be legitimate multi-level marketing (MLM) schemes, but they eventually fall apart when it becomes impossible to recruit new participants, which can happen quickly.

CORPORATE REFORMS TO BOOST BUSINESS EASE

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net REFORMS to key corporate laws will boost The Bahamas’ competitiveness by improving the ease of doing business and providing investors with greater certainty, MPs said yesterday.

Elsworth Johnson, pictured, minister for financial services, trade and industry and immigration, speaking in parliament yesterday said changes to the Companies Act and the International Business Companies Act are designed to create greater flexibility in executing commercial contracts and do away with the need for a new company to have a common seal.

“These amendments are designed to improve the ease of doing business, and to bring clarity to some provisions of existing legislation, bringing certainty in the law for service providers and international partners making use of products and services in the jurisdiction,” Mr Johnson said.

The reforms were drafted with help from the Bahamas Financial Services Board (BFSB) and

the Association of International Banks & Trust Companies (AIBT), he added, in a bid to “ensure that The Bahamas remains the jurisdiction of choice for financial services”.

Other Bills brought to Parliament yesterday include legislation that makes “new provisions with respect to the manner of execution of deeds and other instruments for connected matters”. Another Bill “clarifies the existing law as it relates to the abolition of the rules against perpetuity as the disposition of interest and property”, Mr Johnson said.

He added: “Lastly, the Foundations Amendment Bill amends section four of the Foundations Act to make clear that a

allowed to open.

“It’s not right. Gyms that can show they follow the protocols should be open – period. They have been e-mailing and calling with no response, and it’s senseless that people can crowd up in a food store or get takeout at McDonald’s but can’t exercise to make themselves healthy and build their immune system.”

Tara Morley, the Bahamas Federation of Retailers (BFR) co-president, said the curfew relaxation was “great” and her members are happy they can now operate regular hours on Saturday.

foundation under this Act created for a charitable purpose may benefit persons everywhere in the world.

“We are answering the call of industry stakeholders to follow the trends to remain competitive and make it easier to do business in The Bahamas. We all know that certainty is critical when selecting a jurisdiction for international financial services.”

Brent Symonette, the St Anne’s MP and Mr Johnson’s immediate ministerial predecessor, said the Bills are “great steps forward” in boosting The Bahamas’ ease of doing business.

“These compendium of Bills are what is necessary for the financial services industry, so that they can go out and market The Bahamas,” he added.

Chester Cooper, the Opposition’s finance spokesman, said: “The Companies Act amendments are long overdue, and when I say long overdue, I cannot overstate that. One of the things it is doing is to make it easier to do business by doing away with the mandatory requirement to use a seal.”

PAGE 4, Thursday, December 3, 2020

Salvation Army volunteers cut by half as COVID bites

By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net THE Salvation Army yesterday said it was “hoping” the Christmas run-up will generate sufficient funds to aid their anti-poverty work despite having experienced a volunteer fall-off amid COVID-19.

Major-General Clarence Ingram told Tribune Business: “Right now we’ve really only started our kettle campaign. We had to delay it because of COVID-19. So we actually just started on Monday.

“We started late with the kettle campaign this year, some two weeks later than we normally would. We typically start in the middle of November. Of course, we don’t really have a good handle yet on how things are going with the Christmas kettle campaign. But otherwise, of course, there are challenges because of COVID-19.”

Adding that it was “too

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early to tell” how charities and their fund-raising will be affected by the pandemic’s economic fall-out, Mr Ingram said he has reduced the Salvation Army’s volunteers, many of whom were retirees.

In previous year’s the organisation would have 20 stationed around New Providence at high customer traffic areas, but it is now only operating with ten. Mr Ingram added: “Many of our volunteers are worried about the COVID-19 as they are at high risk.

“It’s just a matter now of making sure that we’re doing the right protocols and, of course, we are, but one of the things is to make sure that people are social distanced and ensuring everything is disinfected and sanitised every day.”

Income will also be hit by the reduced amount of venues where the Salvation Army is normally stationed, coupled with the impact that COVID-19 is having on the economy.

Mr Ingram added: “We’re hoping, you know, during the next couple of weeks that we will come through reasonably, but we don’t know. So we’re just taking a day at a time and seeing how it goes.”

THE TRIBUNE

IMF calls for harsher Bahamian austerity FROM PAGE ONE greater austerity than that planned by the government, also urged that a road map be developed and released publicly so that Bahamian businesses and households can prepare themselves for what could be especially harsh measures.

“It is advisable to start preparing measures now, and communicate a timetable to implement them as soon as the pandemicrelated uncertainty subsides,” the fund added, as it urged the Ministry of Finance to immediately activate its planned debt management office given the sudden increase in the government’s liabilities.

“The Bahamas would benefit from a robust financing strategy,” the IMF said.

“Central government debt is projected to increase to over 85 percent of GDP this fiscal year. Financing needs will decline only gradually over the medium-term, resulting in elevated risks of debt distress.

“A robust, multi-year government financing strategy should also aim to support the overall foreign exchange position.

The new debt management office within the Ministry

of Finance should be fully operationalised without delay.”

To generate increased revenues, the IMF urged the government to phase-out all Dorian and COVID19 related support at the earliest opportunity. “The authorities are encouraged to phase out the broad set of hurricane and pandemicrelated tax waivers at the first legislative opportunity as there are more effective and targeted measures to support the vulnerable,” it added.

“Given the substantial uncertainty about the outlook, a detailed and explicit contingency plan should be developed.... The withdrawal of fiscal support is expected to start next fiscal year as the various pandemic and hurricane-related measures phase out.”

This would mean that, in addition to the tax credit/ deferral initiative targeted at all VAT registrants, and the Business Recovery Loan targeted at micro, small and medium-sized businesses (MSMEs), the IMF is essentially advising the government to discontinue all tax breaks providing relief to the Dorian reconstruction effort in Abaco and Grand Bahama.

This was met with immediate push back yesterday

by Ken Hutton, Abaco’s Chamber of Commerce president, who said of the IMF’s advice: “It’s wonderful that an institution like that, which has no idea what is going on here, is able to tell us what to do from on high.

“They are an institution that has never seen a tax they don’t like. I think we

have a serious difference of opinion with their assessment primarily because I would like to see a single study from anywhere on the planet showing where increased taxation results in increased economic activity.

Just show me one.

“I just hope the Bahamas government takes their role as a sovereign nation, and a sovereign government, seriously, which I think they do.” Nevertheless, facing a 50 percent year-over-year reduction in revenues for the 2020-2021 first quarter, the government will be eager to make up the shortfall wherever it can.

Asked about the IMF’s call for greater austerity measures, Marlon Johnson, the Ministry of Finance’s acting financial secretary, said the government would set out its own strategy, estimates and fiscal recovery road map when the Fiscal Strategy Report is likely tabled next week.

“The government will speak to that a bit more in the context of the Fiscal Strategy Report, and provide government’s perspective on measures that need to happen for the government to stay aligned with what we’re projecting going forward and the timeline for getting back to that level of fiscal balance,” he told Tribune Business.

“They [the IMF] have their view. What you’ll see is the government’s perspective on what needs to happen.” The IMF, meanwhile, called for “a reprioritisation of public spending” that “would promote inclusive and resilient medium-term growth”.

It urged: “Savings could be achieved through containing administrative costs and improving the operational efficiency of state-owned enterprises to facilitate a reduction in subsidies. The planned comprehensive spending review should be used to identify areas offering scope for savings, and to develop a guiding framework to rank outlays by their mediumterm effects on growth and resilience.”

Rick Lowe, an executive with the Nassau Institute, who has been sounding the alarm over The Bahamas’ exploding debt for almost two decades, yesterday also interpreted the IMF’s language as a call for harsher austerity measures and higher taxes than those planned by the government if the state is to right its fiscal ship.

“I’m worried. I really am,” he told Tribune Business. “I can’t quite put my finger on it but it’s very disconcerting. It’s a hell of a long suffering road if we want to reach a 50 percent debt-to-GDP ratio by 2030.

They’d better start loosening up price control and this regulatory burden. The regulations just keep piling on and piling on and piling on.

Mr Lowe added that the debt figures currently do not include the $2bn in estimated unfunded civil service pension liabilities, and said: “It’s been a long time coming, but the political class always knew best how to tax and spend. The writing’s been on the wall for a couple of decades now.”

Extra $225m raise ‘signals confidence’ FROM PAGE ONE of the extra $225m bonds are the same as the maturity and other conditions attached to the original $600m issue.

The latest $225m raise means that the government will be less dependent on the Bahamian capital markets, and institutional investors such as banks, insurance companies and pension funds, to finance what was said to be the remainder of its $400m deficit funding for the 2020-2021 fiscal year.

Mr Johnson, asked whether the government could have got a cheaper interest rate in the domestic market, reiterated that the government had always planned to finance the bulk of its deficit via foreign currency to “buttress and support” the

external reserves given the absence of tourism-related inflows.

“Where we see opportunities to raise funding on what we consider to be optimal terms in the circumstances we take it,” he said, adding that no determination had yet been made on whether the government will seek to finance the remainder of its projected $1.327bn deficit in the local markets, internationally or a mixture of both.

“This signals the credit markets have confidence in The Bahamas and future of The Bahamas,” Mr Johnson told Tribune Business as he defended the eight percent rate as the best available amid COVID-19 and recent downgrades.

“We’re in a situation now where a lot of our regional peers are shut out and cannot access the private credit markets. It’s a sign of confidence for us when a lot of jurisdictions are shut out and can’t access it. A lot of the region collectively is challenged.”

The $225m proceeds will be used to finance the government’s general 2020-2021 budgetary needs. A sinking fund will be created to pool money to repay the debt, with the issue’s placement again led Credit Suisse Securities (USA).

Chester Cooper, pictured, the opposition’s finance spokesman, last night called on the government to provide further details surrounding the latest borrowing.

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Thursday, December 3, 2020, PAGE 5

IMF: Four-year haul on COVID recovery FROM PAGE ONE Rolle, who earlier this week estimated 2023 for a full tourism and economic rebound.

“Real GDP is projected to decline by 16.2 percent in 2020, followed by a modest rebound of two percent in 2021, and to converge back to its pre-pandemic level only by 2024,” the IMF said of The Bahamas’ yesterday.

“The current account balance is projected at a deficit of 17.4 percent of GDP in 2020, and will improve only gradually, consistent with the projected pick up in tourism in 2022. Foreign reserves reached a record level of $2.3bn in October and should remain well above the minimum suggested threshold of three months of imports over the medium-term.

“Risks around the baseline are high, reflecting the uncertain evolution of the COVID-19 pandemic and vulnerability to weatherrelated natural disasters.”

Using 2018 real GDP data, as the 2019 figures are not yet available, the IMF’s forecast would see Bahamian economic output shrink from $10.763bn to around $9.02bn - a drop of $1.743bn, which represents

what has been lost due to COVID-19.

Applying the IMF’s revised two percent GDP growth estimate for 2021 to the $9.02bn figure results in Bahamian GDP rebounding by some $198m to $9.2bn, a figure that is still some $1.563bn below 2018’s economic output, and which gives an insight into the severity of the losses and devastation inflicted by COVID-19.

Rupert Pinder, an economist who lectures at the University of The Bahamas, told Tribune Business that the IMF’s projections align with his own views and effectively rule out any prospect of this nation enjoying a rapid v-shaped recovery from the pandemic.

“The thing about it is that’s a very anemic sort of recovery given the loss of 16 percent this year,” he said.

“You’re talking about two percent next year. That puts you in line to return to previous levels of GDP four to five years out. I thought it would take at least five years to return to pre-COVID numbers. When you look at this, this projects anything but a v-shaped recovery for The Bahamas.”

Mr Pinder added that both the IMF’s economic

contraction estimates and recovery timeline were in line with those provided by the Central Bank and Mr Rolle, as he warned that reducing an unemployment rate many estimated rose to between 40-50 percent at the pandemic’s height will be among the government’s greatest policy challenges.

Noting that reduced unemployment, and the creation of new jobs and hirings, always lagged behind economic growth, he added: “The most stubborn numbers in this sort of thing are the unemployment numbers.

“Even when you show signs of recovery, unemployment is the hardest thing to move. From a policy standpoint that should be one of the greatest areas of concern. There’s going to have to be a balancing act.

“One of the things the government is going to have to do during the period of recovery is bring forward infrastructure projects and private-public partnerships to deal with things like this. The unemployment numbers are going to be the most troublesome to move even during periods of recovery. We saw that following the financial crisis (2008-2009).”

The IMF somewhat agreed, adding in yesterday’s Article IV statement: “The continuation of the various COVID-19 related measures to support the vulnerable, employment

and the health sector in the 2020-2021 budget is appropriate. The planned capital projects - hospitals, roads, and infrastructure rehabilitations - should be put through rigorous appraisal and selection processes.”

The government, which last night announced the placing of another $225m worth of foreign currency bonds with the international capital markets (see other article on Page 1B), in its official response to the IMF statement focused not surprisingly on the positive things said by the Fund. In particular, it focused on the IMF’s praise for “the rapid emergency response to support the economy”.

“Despite the human, social and economic toll of the two unprecedented shocks hitting The Bahamas in recent times,” the government replied, referring

to Hurricane Dorian as well as COVID-19, “The Bahamas continues to receive international recognition for its overarching policy priorities to save lives, preserve livelihoods and lay a solid foundation for a robust recovery.

“Further, the country’s ongoing commitment to implementing fiscally responsible plans continue to be recognised as critical components to enhancing growth and resilience.”

Marlon Johnson, the Ministry of Finance’s acting financial secretary, told Tribune Business that “by and large the government is aligned with the assessment made by the IMF”. He added that the 2020 Fiscal Strategy Report, likely to be tabled in Parliament next week, would provide more detail on the government’s own forecasts as well

as a road map for addressing COVID-19’s fall-out.

“The Fiscal Strategy Report speaks a bit more to what the government projects for economic forecasts, but what the IMF is saying is is in line with where we are,” said Mr Johnson, who also co-chaired the government’s Economic Recovery Committee (ERC).

“The ERC made recommendations on what could be done to try and help accelerate that recovery.

What is happening now is predicated on what is happening around the world, and how the world is recovering from the pandemic will drive the demand for the goods and services we offer. Our recovery cannot be viewed independently from the recovery in key source and export markets.”

PAGE 6, Thursday, December 3, 2020

THE TRIBUNE

‘No escaping’ tax hikes as IMF pushes income levy FROM PAGE ONE “In tax administration, the review and modernisation of the Department of Inland Revenue’s organisational structure should be prioritized. For Customs, priorities include establishing an effective exemption monitoring and verification unit, strengthening risk management, and developing post-audit clearance capacity.”

Mr Pinder, in response, said it was hard to see any alternative to new and/or increased taxation to help pay for the extra debt taken on by the government to pay for COVID-19 and the Hurricane Dorian recovery once the economy stabilised and then pandemic passed.

“My argument is that’s coming. There’s no escaping it,” he told Tribune Business. “But what needs to happen is is we need to have a very comprehensive look at taxation, and not do it in a

piecemeal fashion. It’s got to be a comprehensive review.

“When you look at taxation issues, one of the arguments is that with tax revenues as a percentage of GDP traditionally at 18 percent, we have good head room in terms of increasing the level of taxation. I’ve heard people in the Ministry of Finance use that argument.

“The danger of that is it’s one thing to look at the numbers in relation to GDP, but to focus on consumption taxes which affect people at the lower end of the spectrum disproportionately rather than direct taxation, which has more bearing on income levels than consumption......”

Mr Pinder acknowledged that consumption-based taxes, such as VAT and import tariffs, were easier to collect especially since The Bahamas has no history of income or corporate income taxation.

While this nation has todate shied away from such

taxes, due to concerns over whether it has a sufficient income tax base, and the difficulty and costs associated with collecting it, he added that he did not necessarily “buy that” given that Barbados has both income and consumption taxes.

Income tax, whether personal, corporate or both, has long been viewed as a reform option for The Bahamas by elements both inside and outside the country. The current regressive consumption-based tax system is seen as unfair because poorer Bahamians end up spending a disproportionately higher amount of their income in taxes compared to higher earners.

Under direct taxation, such as an income tax, the amount of tax paid is linked to the person’s ability to pay, which makes for a fairer, more progressive system. Similar sentiments were recently voiced by the governmentappointed Economic

Recovery Committee, which said in its executive summary: “The Bahamas’ historically regressive tax regime is viewed largely as both inequitable and unsustainable.

“Tax contributions are disproportionately higher for lower income citizens/ businesses largely because of the regressive nature of the country’s tax regime. Beyond this, the sustainability of the current regime in light of population growth, the rising cost of living and other factors remains an impediment to its growth and development prospects.”

Marlon Johnson, the Ministry of Finance’s acting financial secretary who also co-chaired that committee, yesterday said the Government would take the IMF’s plugging of income tax “under advisement”.

He added that whatever tax reform options were assessed, they “need a deep study so that the appropriate regime is based on empirical

data and matches where the country is presently”.

Elsewhere, the IMF also reflected the committee’s report by suggesting that The Bahamas increase the real property tax rate for “higher value residences”, although it did not define this market segment. The committee had recommended increasing the $60,000 real property tax ‘cap’ or ceiling, and for real property tax to be levied on “high end” Bahamian-owned properties in the Family Islands.

The IMF, meanwhile, added that “establishing an asset registry and real estate price index would reduce information asymmetries and support monetary policy transmission”. It said: “The Bahamas faces long-standing structural impediments, and COVID-19 brought them to the fore.

“Reform priorities, many of which are listed in the recent report by the Economic Recovery

Committee, include modernising administrative services and rationalising regulatory requirements for starting a business; enhancing the operational efficiencies of utility state-owned enterprises; and reducing frictions in the job matching process.

“The prospect of more frequent natural disasters makes it paramount to further enhance resilience. The disaster relief fund, which was exhausted following Hurricane Dorian, should be gradually rebuilt. A proactive data exchange among relevant agencies can increase agility of social programmes, while better targeting could broaden the reach of services.

“A mandatory insurance for all private properties, not just for those financed by mortgages, can help increase private sector resilience.

To ease the socioeconomic burden, a means-tested subsidy for insurance premiums could be considered.”

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THE TRIBUNE

Thursday, December 3, 2020, PAGE 7

Oil explorer: Just 20% of opponents from The Bahamas FROM PAGE ONE the view of Bahamians against this potentially transformational project” by giving the appearance that more of their countrymen are against exploratory drilling than there actually are.

Suggesting that the petition was being hosted by an online California-based business that specialises in these issues, BPC said: “Data collected on behalf of BPC by a company specialising in sophisticated data analysis indicates that the vast majority of these signatures are from persons not in The Bahamas, but rather are overseas parties with no obvious connection to The Bahamas...

“As of 30 November, 2020, data analysis shows that only 20 percent of the self-identified signatories

FRED SMITH QC were from inside The Bahamas, with the other 80 percent of such signatories based outside of The Bahamas. This directly contradicts the Our Islands, Our Future suggestion that the online petition represents the views of the Bahamian people.

“Indeed, rather than accurately reflect the view of Bahamians, it suggests more that Our Islands, Our Future is using a common global platform to recruit

signatories from overseas so as to skew the results of the petition in support of their agenda in trying to turn the view of Bahamians against this potentially transformational project.”

Reiterating its argument that the government has “a legitimate sovereign right” to determine if commercial quantities of oil exist beneath the Bahamian seabed, BPC said: “BPC holds a valid authorisation from the government to proceed with the exploration well and should not have an independently monitored process distorted by an external pressure campaign funded by already wealthy influencers from outside of The Bahamas.

“BPC strongly urges the public to find out more about the facts of the Perseverance One exploration well, the potential economic boost its success offers Bahamians, and the extensive environmental authorisation process completed with, and approved by, the Government of The Bahamas.”

Fred Smith QC, the Our Islands, Our Future lead attorney, last night blasted back at BPC that, even if their 20 percent claim was true, this percentage still represented “thousands of Bahamians” who were opposed to the company’s plans for waters 90 miles west of Andros.

Describing his response as “so what?”, Mr Smith suggested that the lengths BPC had gone to in hiring a data analyst to discredit the coalition’s position showed it was rattled by the threat of imminent legal action that will include an attempt to secure a Supreme Court injunction to halt

all drilling activity.

“There are over seven million people that visited The Bahamas pre-COVID, so there will obviously be a strong international contribution to the petition,” Mr Smith argued. “The Bahamas is an island location that millions of people come to every year, and they are interested in protecting the Bahamian environment so we can continue to have tourism as the mainstay of the economy.”

Warning that any major oil spill or accident would “sound the death knell for The Bahamas as an absolutely beautiful location that people desire to come to,”

he added: “I am pleased to see that BOC are taking Our Islands, Our Future seriously because they should. We are a domestic and international coalition, and have a lot of support.

BPC should, as they are doing, be taking us seriously because we are a serious crew.”

The executive director of the Bahamas Reef Environment Education Foundation (BREEF), Casuarina McKinney-Lambert, last night said all signatories to the petition “need to be heard” with some 130 Bahamian and international groups now part of Our Islands, Our Future.

PAGE 8, Thursday, December 3, 2020

THE TRIBUNE

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THIS TUESDAY, Nov 10, satellite image made available by NOAA shows Tropical Storm Eta at 10:40am EST in the Gulf of Mexico, Theta, right, and a tropical wave to the south that became Tropical Storm Iota. An overheating world obliterated weather records in 2020 — an extreme year for hurricanes, wildfires, heat waves, floods, droughts and ice melt — the United Nations’ weather agency reported yesterday.

UN calls on humanity to end ‘war on nature,’ go carbon-free Associated Press AS an extreme year for hurricanes, wildfires and heat waves comes to an end, the head of the United Nations challenged world leaders to make 2021 the year that humanity ends its “war on nature” and commits to a future free of planet-warming carbon pollution.

With new reports highlighting 2020’s recordbreaking weather and growing fossil fuels extraction that triggers global warming, UN SecretaryGeneral Antonio Guterres delivered yet another urgent appeal to curb climate change. It was tinged with optimism but delivered dire warnings, as the UN gears up for a Dec 12 virtual climate summit in France on the 5th anniversary of the landmark 2015 Paris climate agreement.

“The state of the planet is broken,” Guterres said in a speech at Columbia University. “Humanity is waging war on nature. This is suicidal.”

“Apocalyptic fires and floods, cyclones and hurricanes are increasingly the new normal,” he said.

In a report, the World Meteorological Organization said this year is set to end about 1.2 degrees Celsius (2.2 degrees Fahrenheit) warmer than the last half of the 1800s, which scientists use as a baseline for warming caused by heattrapping gases from the burning of coal, oil and natural gas. Most trapped heat goes into the world’s seas, and ocean temperatures now are at record levels.

It also means 2020 will go down as one of the three hottest years on record.

“There is at least a one-infive chance of it temporarily exceeding 1.5 degrees Celsius by 2024,” WMO Secretary-General Petteri Taalas said. The Paris climate accord set a goal of not exceeding 1.5-degree (2.7 degrees Fahrenheit) warming since pre-industrial times.

A new analysis by Climate Action Tracker scientists who monitor carbon pollution and pledges to cut them said public commitments to emission cuts, if kept, would limit warming to about 2.6 degrees Celsius (4.7 degrees Fahrenheit) and possibly as low as 2.1 degrees Celsius.

Guterres saw hope in promises by more than 100 countries that by mid-century they will not be adding more heat-trapping gases to the atmosphere than trees and technology can remove, along with shorter term pollution cuts. China and US President-elect Joe Biden have pledged net zero carbon emissions.

“I firmly believe that 2021 can be a new kind of leap year — the year of a quantum leap towards carbon neutrality,” Guterres said.

But he said the two UN reports yesterday “spell out how close we are to climate catastrophe.”

When countries spend trillions of dollars to recover from the pandemic-triggered economic slowdown, Guterres said they must to do so in a way that emphasizes clean energy.

Nations should stop funding and subsidizing fossil fuels, he said. And countries need to fulfill their Paris promise to spend $100bn annually to help poorer countries develop cleaner energy.

Guterres said there’s no way the world can curb the climate change “without US leadership” and urged students and other Americans to do “everything you can” to get their governments to curb emissions more quickly.

One of the new reports found countries would need to cut production of oil, coal and natural gas by 6% each year by 2030 to keep global temperatures from rising more than 1.5 degrees Celsius. Instead, a review of eight major fossil-fuel producing nations showed they plan to increase production by 2% annually. That means twice the amount of carbonbased fuel would come onto the market than feasible to keep the Paris goal within reach.

Governments in the Group of 20 major and emerging economies have so far committed more money to prop up fossil fuel sectors than to boost the rollout of renewable energy, the report found.

Co-author Ivetta Gerasimchuk of the International Institute for Sustainable Development said investing in oil, coal and gas no longer makes economic sense because renewable energy is becoming cheaper than fossil fuels.

But, she said, “We see that instead of governments letting these fossil fuel projects die they resurrect them from the dead.”

The WMO’s report found global warming is worsening in all seven key climate indicators, but the problem is increasing human suffering in an already bad year.

“In 2020, over 50 million people have been doubly hit: by climate-related disasters (floods, droughts and storms) and the COVID19 pandemic,’’ the report said. “Countries in Central America are suffering from the triple-impact of hurricanes Eta and Iota, COVID-19 and pre-existing humanitarian crises.”

Among the dozens of extremes the report highlighted: • A record 30 Atlantic named tropical storms and hurricanes.

• Death Valley, California, hit 129.9 degrees (54.4 degrees Celsius), the hottest the world has seen in 80 years.

• Record wildfires struck California and Colorado in the western United States, following a major fire season and record heat in Australia.

• The Arctic had record wildfires and a prolonged heat wave culminating in a 100-degree mark (38 degrees Celsius) in Siberia in June.

• Record low Arctic sea ice was reported for April and August and the yearly minimum, in September, was the second lowest on record.

• More than 2,000 people died in record summer rains and flooding in Pakistan and surrounding nations.

While these events can’t solely be blamed on climate change, “these are the types of events scientists fear will increase due to climate change,” said Cornell University climate scientist Natalie Mahowald, who wasn’t part of the report.

“Human activities are at the root of our descent towards chaos,” Guterres said. “But that means human action can solve it.”

THE TRIBUNE

Thursday, December 3, 2020, PAGE 9

Stock indexes shake off a weak start and end mostly higher Associated Press STOCKS shook off a sluggish start to finish with modest gains yesterday, nudging the S&P 500 index to an all-time high for the second straight day.

The benchmark index rose 0.2% after spending much of the day drifting between small gains and losses. About 54% of the stocks in the index rose, with communications, financial and health care companies driving the bulk of the gains. A pullback in technology stocks, companies that rely on consumer spending and elsewhere kept the market’s gains in check.

Treasury yields continued to head mostly higher, a sign of growing confidence in the outlook for the economy.

That confidence has also been pushing stocks higher in recent weeks as traders hope coronavirus vaccines will start driving a stronger economic recovery. Investors were not deterred by new data yesterday showing that hiring by US companies slowed last month.

“The biggest thing about the market that we’ve seen the last couple of weeks is (investors) keep trying to sell it, and it still hangs

in there,” said JJ Kinahan, chief strategist at TD Ameritrade.

The S&P 500 rose 6.56 points to 3,669.01. The index is now up about 13.6% for the year. The Dow Jones Industrial Average gained 59.87 points, or 0.2%, to 29,883.79. The tech-heavy Nasdaq composite, which also opened the month with a new record, slipped 5.74 points, or 0.1%, to 12,349.37.

Stocks have been ramping higher in recent weeks as drugmakers make steady progress in developing coronavirus vaccines. The rollout of a vaccine in the US could begin this month, if regulators give their approval.

Pfizer shares rose 3.5% after the drugmaker and BioNTech said they won permission for emergency use of their COVID-19 vaccine in Britain. The vaccine is the world’s first coronavirus shot that’s backed by rigorous science and a major step toward eventually ending the pandemic.

The move makes Britain one of the first countries to begin vaccinating its population against the virus. The companies have already asked for approval to begin

vaccinations in the US in December.

Moderna is also asking US and European regulators to allow emergency use of its COVID-19 vaccine.

Its shares rose 1.4%.

Optimism about vaccine developments have tempered lingering concerns over rising virus cases in the US, though worries persist about the economic fallout from new government restrictions on businesses aimed at limiting the spread.

“My farther-out fear for the market is once this vaccine starts to roll out, will it be able to meet these amazing expectations people have for everything getting back to normal?” Kinahan said.

Unemployment remains high as the COVID-19 outbreak widens the gulf between average people and the wealthiest Americans. Payroll processor ADP said yesterday that its latest survey of private US employers shows they added 307,000 jobs last month. That fell short of Wall Street analysts’ expectations for a gain of 405,000 jobs, according to FactSet. The report precedes a broader jobs survey from the Labour Department due out Friday. Economists are

forecasting that will show employers added about 441,000 jobs in November, down from a gain of 638,000 in October.

Meanwhile, traders are holding out hope that Democrats and Republicans may reach a deal on some amount of economic stimulus for the economy before 2021, though the parties remain divided on the details and the cost.

The Federal Reserve’s latest survey of business conditions around the US found economic activity has slowed in some parts of the country amid a surge in new coronavirus cases. Yesterday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin told lawmakers during a House Financial Services Committee hearing that Congress needs to approve

COVID-19 relief funds without further delay.

However, it looks like most lawmakers are willing to wait until after President-elect Joe Biden takes office, said Ross Mayfield, investment strategy analyst at Baird.

“The problem is, by that point you’re going to have six to ten more weeks of economic damage,” he said.

Technology stocks, which have been leading the market higher since the pandemic started wreaking havoc on the global economy, helped limit the market’s gains yesterday.

Salesforce.com was the biggest decliner in the S&P 500, tumbling 8.5%, after announcing a deal late on Tuesday to buy messaging platform Slack for $27.7bn.

Microsoft slipped 0.4%.

Lyft climbed 9.6% after the ride-hailing company

posted a smaller loss this quarter and better margins.

The news helped boost rival Uber Technologies up 7%.

Treasury yields headed higher, giving banks a boost because they allow them to charge more lucrative interest rates on loans. The yield on the ten-year Treasury rose to 0.96% from 0.92% late Tuesday. JPMorgan Chase rose 1.9% and Citigroup gained 3.1%.

Germany’s DAX shed 0.5% and France’s CAC 40 was flat. In Britain, the FTSE 100 rose 1.2%. Markets in Asia were mixed.

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PAGE 10, Thursday, December 3, 2020

THE TRIBUNE

LEGAL NOTICE NOTICE INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000) In Voluntary Liquidation Notice is hereby given that, in accordance with Section 138(4) of the International Business Companies Act, (No.45 of 2000) Magenta House Limited (the”Company”) is in dissolution. The date of commencement of the dissolution is November 30th, 2020 Trevor Charles Deaves, is the Liquidator and can be contacted at Forge House, Blind Lane, Chipping Campden, GL55 6ED, United Kingdom November 30th, the 2020above-named All persons having claims against Company are required to send their names, addresses and particular of their debts or claims to the Liquidator before December 30th, 2020 December 30th, 2020.

LEGAL NOTICE UCAP Asia Fund Series Ltd., SAC INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000) In Voluntary Liquidation

MARKET REPORT www.bisxbahamas.com

WEDNESDAY, 2 DECEMBER 2020

BISX ALL SHARE INDEX:

CLOSE

CHANGE

%CHANGE

2091.60

0.01

0.00

YTD

YTD%

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

-6.27 -140.00

BISX LISTED & TRADED SECURITIES 52WK HI 4.05 33.05 2.00 1.79 2.39 6.00 6.75 4.40 8.59 4.50 6.16 12.77 3.64 6.50 10.88 8.44 16.99 4.25 9.26 15.21

52WK LOW 3.13 22.65 0.67 1.62 1.67 5.00 6.00 2.70 4.75 3.50 5.90 11.06 2.10 3.96 9.60 7.50 13.04 3.20 8.15 14.00

PREFERENCE SHARES 1.00

1.00

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

1.00 10.00 1.00

1.00 10.00 0.90

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

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

Bahamas First Holdings Preference Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A RF Bank & Trust Limited Class A Focol Class B

BFHP CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

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

52WK LOW 100.00 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 102.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00

52WK HI 2.37 4.43 2.13 198.39 176.73 1.69 1.85 1.77 1.24 8.39 10.26 7.23 12.80 12.81 10.81 10.00 8.98 11.79

52WK LOW 2.11 3.30 1.68 164.74 116.70 1.65 1.79 1.75 1.05 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

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

SYMBOL FBB22 BFHB

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

MUTUAL FUNDS

MARKET TERMS

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

BAH29 BG0107 BG0207 BG0130 BG0230 BG0307 BG0330 BG0407

LAST CLOSE 4.05 32.12 1.62 1.78 1.67 6.00 6.61 2.99 4.75 3.64 5.90 11.26 2.20 6.50 10.14 8.40 14.12 3.80 8.25 15.20

CLOSE 4.05 32.12 1.62 1.78 1.67 6.00 6.61 2.99 4.75 3.64 5.90 11.26 2.26 6.50 10.08 8.40 14.12 3.80 8.25 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 (0.06) 0.00 0.00 0.00 0.00 0.00

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

1.00 1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

VOLUME 500

400 16,000 582 600

10,000

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 VOLUME

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno 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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

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

EPS$ 0.239 0.932 0.000 0.000 0.070 1.760 0.369 -0.438 0.140 0.184 0.449 0.722 0.102 0.467 0.646 0.728 0.816 0.203 0.939 0.631

NAV 2.37 4.43 2.13 198.36 173.98 1.69 1.79 1.77 1.05 8.39 9.88 7.23 12.33 12.80 10.20 N/A 9.28 11.86

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

P/E 16.9 34.5 N/M N/M N/M N/M 17.9 -6.8 33.9 19.8 13.1 15.6 22.2 13.9 15.6 11.5 17.3 18.7 8.8 24.1

YIELD 4.20% 3.92% 1.23% 0.00% 0.00% 0.00% 3.93% 0.00% 0.00% 3.30% 3.73% 6.39% 19.20% 0.92% 3.25% 2.86% 3.82% 3.16% 2.42% 4.01%

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

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

INTEREST Prime + 1.75% 6.25%

MATURITY 19-Oct-2022 30-Sep-2025

6.95% 4.50% 4.50% 6.25% 6.25% 4.50% 6.25% 4.25%

20-Nov-2029 15-Dec-2021 30-Jul-2022 15-Dec-2044 30-Jul-2045 26-Jun-2022 26-Jun-2045 15-Oct-2022

YTD% 12 MTH% 3.76% 4.43% 1.54% 2.56% 2.12% 2.59% 1.65% 2.39% 4.34% 9.82% 1.65% 1.95% -3.06% -2.22% 0.80% 1.17% -12.30% -11.81% 0.64% 0.98% 1.19% -3.63% 4.20% 5.04% 2.63% 7.68% 3.68% 3.93% -4.89% -4.62% N/A N/A -0.50% 3.70% -3.80% 4.10%

NAV Date 31-Oct-2020 31-Oct-2020 30-Oct-2020 30-Sep-2020 30-Sep-2020 31-Oct-2020 31-Oct-2020 31-Oct-2020 31-Oct-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020 30-Sep-2020

YIELD - last 12 month dividends divided by closing price

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

Bid $ - Buying price of Colina and Fidelity

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

Ask $ - Selling price of Colina and fidelity

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

Last Price - Last traded over-the-counter price

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

Weekly Vol. - Trading volume of the prior week

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Notice is hereby given that in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of UCAP Asia Fund Series Ltd., SAC has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the Dissolution was 14th May, 2020.

Crowe Bahamas Liquidator

NOTICE NOTICE is hereby given that LIVINSON JOSUE of Marsh Harbor, P.O.Box General Delivery 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 26th day of November 2020 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

LEGAL NOTICE

NOTICE

Barnstaple Investments Ltd. (In Voluntary Liquidation)

Notice is hereby given that the above-named Company is in dissolution, commencing on the 28th day of November, 2020. Articles of Dissolution have been duly registered by the Registrar. The liquidator is (Amicorp Bahamas Management Limited) whose address is Bahamas Financial Centre, 3rd Floor, Shirley & Charlotte Street, P.O. Box N-4865, Nassau, Bahamas.

Dated this 1st day of December, 2020

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

(AMICORP BAHAMAS MANAGEMENT LIMITED) LIQUIDATOR

To advertise in The Tribune, contact 502-2394

THE TRIBUNE

Thursday, December 3, 2020, PAGE 13

Fed reports slowing US economic activity due to virus surge WASHINGTON Associated Press A FEDERAL Reserve survey of business conditions around the country found that economic activity in several regions slowed in November as coronavirus cases surged.

The Fed report released yesterday said that overall,

the Fed’s 12 regional banks characterised the economic expansion as “modest or moderate”. But it noted that three Midwest regions and the Philadelphia region reported activity had begun to cool in early November as COVID-19 cases surged.

Four districts reported “little or no growth” during November, while five others reported that activity remained well below pre-pandemic levels in some sectors.

Kathy Bostjancic, chief US financial economist for Oxford Economics, said the latest Fed survey showed the recovery continues to be uneven across many sectors of the economy.

The report said that among the sectors doing better were manufacturing, housing construction and existing home

sales. But banks said there had been deterioration in their loans, particularly those to retailers and the leisure and hospitality industries.

The report said that most districts found that local businesses’ optimism has “waned”, with many citing concerns about the wave of virus cases and renewed lockdown restrictions. The report also said there was concern about the looming expiration dates for government support programmes, including extended unemployment benefits and the moratoriums that have been in place on evictions and foreclosures.

The report, known as the beige book, will be used by Fed officials when they hold their last meeting of the year on Dec 15-16 to discuss possible changes to the central bank’s interest-rate policies.

In response to the deep recession brought on when the virus struck with force in March, the Fed slashed its key interest rate to a record low and began buying billions of dollars in Treasury bonds and mortgage-backed securities to put downward pressure on long-term rates.

The Fed is expected to maintain its ultra-low interest rates over the next three years. But it may also decide as soon as this month’s meeting to expand the support it is providing through its bond purchases, especially if Congress is unable to pass further economic relief legislation in the lame-duck session.

At a congressional hearing yesterday, Fed Chairman Jerome Powell said that increased support from Congress is needed as a bridge between the current

economic troubles and the time next year when a virus vaccine is expected to be widely available.

The new Fed survey said that while employment increased during November, the pace of job gains was slow at best.

Many of the Fed’s business “contacts noted that the sharp rise in Covid-19 cases had precipitated more school and plant closings and renewed fears of infection, which have further aggravated labour supply problems”, the report said.

“Providing for childcare and virtual schooling needs was widely cited as a significant and growing issue for the workforce, especially for women.”

The Fed survey said that the staffing issues had prompted some companies

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 73° F/23° C Low: 58° F/14° C

TAMPA

FRIDAY

SATURDAY

SUNDAY

MONDAY

Partly sunny and beautiful

Partly cloudy

Mostly sunny and pleasant

Partly sunny

Mostly cloudy with spotty showers

A passing morning shower; clearing

High: 76°

Low: 69°

High: 79° Low: 71°

High: 81° Low: 69°

High: 78° Low: 67°

High: 77° Low: 66°

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

AccuWeather RealFeel

77° F

67° F

81°-74° F

88°-71° F

79°-66° F

77°-64° F

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

N

almanac

E

W

ABACO

S

N

High: 74° F/23° C Low: 67° F/19° C

8-16 knots

S

High: 76° F/24° C Low: 68° F/20° C

8-16 knots

FT. LAUDERDALE

FREEPORT

High: 76° F/24° C Low: 69° F/21° C

N E S

E

W

WEST PALM BEACH

W

uV inDex toDay

TONIGHT

High: 75° F/24° C Low: 60° F/16° C

High: 74° F/23° C Low: 68° F/20° C

MIAMI

High: 76° F/24° C Low: 68° F/20° C

8-16 knots

Statistics are for Nassau through 1 p.m. yesterday Temperature High ................................................... 73° F/23° C Low .................................................... 66° F/19° C Normal high ....................................... 80° F/27° C Normal low ........................................ 68° F/20° C Last year’s high ................................. 86° F/30° C Last year’s low ................................... 68° F/20° C Precipitation As of 1 p.m. yesterday ................................. 0.16” Year to date ............................................... 67.20” Normal year to date ................................... 38.66”

ELEUTHERA

NASSAU

High: 76° F/24° C Low: 69° F/21° C

Forecasts and graphics provided by AccuWeather, Inc. ©2020

High: 77° F/25° C Low: 68° F/20° C

N

KEY WEST

High: 76° F/24° C Low: 71° F/22° C

tiDes For nassau High

Ht.(ft.)

Low

Ht.(ft.)

Today

9:26 a.m.

9:45 p.m.

3.0 2.2

3:01 a.m.

3:59 p.m.

0.1 0.2

Friday

10:08 a.m.

10:31 p.m.

2.9 2.2

3:43 a.m.

4:42 p.m.

0.2 0.3

Saturday

10:54 a.m.

11:22 p.m.

2.9 2.2

4:29 a.m.

5:29 p.m.

0.3 0.3

Sunday

11:45 a.m.

-----

2.8 -----

5:23 a.m.

6:20 p.m.

0.4 0.3

Monday

12:20 a.m.

12:40 p.m.

2.3 2.8

6:23 a.m.

7:14 p.m.

0.5 0.2

Tuesday

1:21 a.m.

1:39 p.m.

2.4 2.7

7:30 a.m.

8:09 p.m.

0.4 0.0

Wednesday 2:24 a.m.

2:40 p.m.

2.6 2.7

8:38 a.m. 0.3 9:05 p.m. -0.1

sun anD moon Sunrise Sunset

High: 79° F/26° C Low: 69° F/21° C

N

S

E

W

8-16 knots

S

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

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

6:40 a.m.

5:20 p.m.

Moonrise Moonset

8:13 p.m.

9:27 a.m.

Last

New

First

Full

Dec. 7

Dec. 14

Dec. 21

Dec. 29

CAT ISLAND

E

W

to extend greater accommodations for flexible work schedules.

The Philadelphia district reported that sharply rising COVID-19 cases in November had “heightened concerns over anticipated layoffs, foreclosures, evictions and bankruptcies”.

The Fed’s St Louis regional bank, meanwhile, reported that conditions had deteriorated toward the end of November, while the Minneapolis region reported a softening in consumer demand due to rising virus infections.

The Dallas district said that energy activity remained depressed and business prospects were “highly uncertain due to looming concerns surrounding political uncertainty and the unknown course of the pandemic”.

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 79° F/26° C Low: 70° F/21° C

High: 79° F/26° C Low: 74° F/23° C

N

High: 78° F/26° C Low: 70° F/21° C

E

W S

LONG ISLAND

tracking map

High: 80° F/27° C Low: 72° F/22° C

L

MAYAGUANA High: 80° F/27° C Low: 74° F/23° C

Shown is today’s weather. Temperatures

H

8-16 knots

CROOKED ISLAND / ACKLINS

are today’s highs and tonight’s lows.

RAGGED ISLAND High: 80° F/27° C Low: 74° F/23° C

High: 80° F/27° C Low: 73° F/23° C

GREAT INAGUA High: 82° F/28° C Low: 75° F/24° C

N

E

W

E

W

N

S

S

12-25 knots

10-20 knots

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

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

WINDS NE at 8-16 Knots ESE at 8-16 Knots E at 8-16 Knots ESE at 6-12 Knots ENE at 8-16 Knots E at 7-14 Knots ENE at 12-25 Knots ENE at 10-20 Knots ENE at 8-16 Knots E at 7-14 Knots E at 8-16 Knots ESE at 7-14 Knots NE at 8-16 Knots E at 7-14 Knots NE at 10-20 Knots ENE at 8-16 Knots ENE at 10-20 Knots ENE at 8-16 Knots NE at 12-25 Knots ENE at 8-16 Knots ENE at 7-14 Knots ESE at 6-12 Knots NE at 12-25 Knots ENE at 10-20 Knots NE at 8-16 Knots E at 6-12 Knots

WAVES 3-6 Feet 4-8 Feet 2-4 Feet 1-3 Feet 3-6 Feet 3-6 Feet 4-8 Feet 4-7 Feet 3-6 Feet 3-6 Feet 3-5 Feet 2-4 Feet 1-3 Feet 1-3 Feet 4-8 Feet 4-7 Feet 3-5 Feet 2-4 Feet 6-10 Feet 5-9 Feet 1-3 Feet 1-3 Feet 3-6 Feet 3-5 Feet 2-4 Feet 2-4 Feet

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 6 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 79° F 79° F 74° F 73° F 79° F 79° F 81° F 81° F 79° F 79° F 76° F 73° F 80° F 80° F 82° F 82° F 81° F 81° F 81° F 81° F 79° F 79° F 81° F 80° F 79° F 79° F

PAGE 14, Thursday, December 3, 2020

THE TRIBUNE

PRESIDENT-elect Joe Biden arrives at The Queen theater, yesterday in Wilmington, Del. Photo: Andrew Harnik/AP

Biden, top Democrats swing behind bipartisan virus aid bill WASHINGTON Associated Press PRESIDENT-elect Joe Biden swung behind a bipartisan COVID-19 relief effort yesterday and his top Capitol Hill allies cut their demands for a $2tnplus measure by more than half in hopes of breaking a monthslong logjam and delivering much-sought aid as the tempestuous congressional session speeds to a close.

Biden said the developing aid package “wouldn’t be the answer, but it would be the immediate help for a lot of things”. He wants a relief bill to pass Congress now, with more aid to come next year.

Biden’s remarks followed an announcement by House Speaker Nancy Pelosi, D-Calif, and Senate Democrat leader Chuck Schumer of New York in support of an almost $1tn approach as the “basis” for discussions. The announcement appeared aimed at budging

Senate Majority Leader Mitch McConnell, R-Ky, who so far has been unwilling to abandon a $550bn Senate GOP plan that has failed twice this fall.

The Democrats embraced a $908bn approach from moderate Sens Joe Manchin, D-WVa, and Susan Collins, R-Maine, among others. It would establish a $300 per week jobless benefit, send $160bn to help state and local governments, boost schools and universities, revive popular “paycheck protection” subsidies for businesses, and bail out transit systems and airlines.

“In the spirit of compromise we believe the bipartisan framework introduced by Senators yesterday should be used as the basis for immediate bipartisan, bicameral negotiations,” Pelosi and Schumer said.

They said they would try to build upon the approach, which has support in the House from a bipartisan “problem solvers” coalition.

The statement was a significant concession by Pelosi and Schumer, who played hardball this fall during failed preelection discussions with the administration on a costlier bill.

They wanted a more generous unemployment benefit and far more for state and local government. Their embrace of the $908bn measure was a retreat from a secret $1.3tn offer the two Democrats gave McConnell just on Monday.

It’s another sign of urgency for additional COVID aid and economic stimulus as the economy struggles to recover from being slammed by the novel coronavirus. While the jobless rate isn’t as high as was feared, the restaurant and airline industries are desperate for aid, as are other businesses, state and local officials, transit systems and the Postal Service, among others.

The new plan includes a liability shield for businesses and other organisations that

have reopened their doors during the pandemic. It’s the first time Pelosi and Schumer have shown a willingness to consider the idea, a top priority of McConnell, though there’s been no discussion on the details, which are sure to be tricky.

McConnell had dismissed the bipartisan offer on Tuesday, instead aiming to rally Republicans around the $550bn GOP proposal. But McConnell himself endorsed a $1tn-or so plan this summer, only to encounter resistance from conservatives that prompted him to retrench. He has acknowledged that another infusion of aid to states and local governments, a key Pelosi demand, probably will pass eventually.

McConnell wouldn’t respond when asked about the Democratic statement.

His top deputy, Sen John Thune, R-SD, said GOP leaders might agree to merging the bipartisan proposal with McConnell’s bill.

“I think there’s still time,

although it’s short, to put a bill together,” Thune said.

Any relief package would be attached to a $1.4tn yearend spending bill required to avert a government shutdown next weekend. Talks on that measure are proceeding but if lawmakers should stumble, a temporary spending bill would be needed as a bridge into next year.

The bipartisan group of lawmakers proposed a split-the-difference solution to the protracted impasse, hoping to speed overdue help to a hurting nation before Congress adjourns for the holidays. It was a sign that some lawmakers reluctant to adjourn for the year without approving some pandemic aid.

Their proposal includes $228bn to extend and upgrade “paycheck protection” subsidies for businesses for a second round of relief to hardhit businesses such as restaurants. It would revive a special jobless benefit,

but at a reduced level of $300 per week rather than the $600 benefit enacted in March. State and local governments would receive $160bn.

There’s also $45bn for transportation, including aid to transit systems and Amtrak; $82bn to reopen schools and universities; and money for vaccines and health care providers, as well as for food stamps, rental assistance and the Postal Service.

The new effort follows a split-decision election that delivered the White House to Democrats and gave Republicans down-ballot success.

Pelosi and Treasury Secretary Steven Mnuchin struggled over a relief bill for weeks before the November election, discussing legislation of up to $2tn.

Senate GOP conservatives opposed their efforts and Pelosi refused to yield on key points.