12152017 business

business@tribunemedia.net

FRIDAY, DECEMBER 15, 2017

$4.45

DEVELOPMENT BANK FUND ‘SINKING’: COVERS 1/3 OF $46M BONDS

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas Development Bank’s (BDB) ‘sinking fund’ covered just one-third of its $46 million outstanding bond debt at year-end 2016, with only 28.4 per cent of its loans ‘performing’.

The BDB’s 2016 financial statements, tabled in the House of Assembly in Wednesday by the Prime Minister, reveal the parlous state of another state-owned enterprise (SOE) that has racked up more than $60 million in losses for the Bahamian taxpayer during its 43-year existence.

The accounts, audited by Grant Thornton

* JUST 28.4% OF LOANS ‘PERFORMING’ * ACCUMULATED LOSSES OVER $60M * SOLVENCY DEFICIENCY AT $31.31M (Bahamas), show that the BDB had a $31.31 million solvency deficiency at end2016 with its continued existence in question without further government (Bahamian taxpayer) financial support.

Of particular concern is the fact that its ‘sinking

SEE PAGE 5

$4.49

$4.39

$4.39

DPM: Bahamas must ‘prove’ itself to S&P

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

T

he Government must “prove” it can deliver on its fiscal and economic turnaround strategy, the Deputy Prime Minister admitted yesterday, after Standard & Poor’s (S&P) kept the Bahamas at ‘junk’ status.

K P Turnquest told Tribune Business he was “not at all” disappointed at the outcome of S&P’s annual review of the Bahamas’ sovereign creditworthiness, despite having previously expressed optimism that the Government could make

* ‘Not at all’ upset nation still ‘junk’ * Blames former Govt’s failure to deliver * Nation has 12-24 months to execute

DPM KP TURNQUEST

the case to be upgraded to ‘investment grade’ status.

Taking a swipe at the former Christie administration, he said S&P’s scepticism about the Government’s ability to execute was “not unreasonable”, given that the credit rating agency had previously been given “big stories” that were never followed through.

Mr Turnquest was speaking after S&P, which

downgraded the Bahamas’ to ‘junk’ status last Christmas, elected to maintain this nation’s credit rating at the same ‘BB+/B’ level in its report yesterday.

Also retaining the ‘stable’ outlook from last year, S&P indicated that it wanted to see the Minnis administration deliver on its economic revival and fiscal consolidation plans before returning

SEE PAGE 5

‘No cause for celebration’ over S&P breathing room

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net PRIVATE sector executives yesterday said the Bahamas has “no cause for celebration yet” after Standard & Poor’s (S&P) elected not to further downgrade its sovereign creditworthiness.

Edison Sumner, the Bahamas Chamber of Commerce’s (BCCEC) chief executive, told Tribune Business that the Bahamas still had to “climb out of this hole” that last Christmas prompted S&P to slash its credit rating to ‘junk’ status (see other article on Page 1B).

But, speaking after the global rating agency

* Bahamas ‘still has to climb out of hole’ * But Chamber chief ‘fully expects’ 2018 upgrade * Many Bahamians don’t realise reform ‘gravity’

EDISON SUMNER maintained the Bahamas at ‘BB+/B’ with a ‘stable’ outlook, Mr Sumner said he “fully expected” this nation to be upgraded in 2018 given the number of government and private sector initiatives “in the pipeline”.

S&P: Gov’ts fiscal, economic reforms ‘will take time’ to work

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government’s fiscal and economic reforms will take time to “pay dividends”, Standard & Poor’s (S&P) warned yesterday, as it took a more ‘bearish’ view of the Bahamas’ growth prospects.

The rating agency, in its latest Bahamas country assessment, expressed confidence that the Minnis administration’s fiscal reforms will “arrest the deterioration” in the

* 1.5% AVERAGE GROWTH FORECAST LOWER THAN IMF’S * GRAND LUCAYAN CLOSURE TAKES OUT 7% OF ROOMS * DEBT TO RISE THROUGH 2020 TO 52% OF GDP Government’s deficit and the national debt.

SEE PAGE 7

Gaming Board lacks ‘oversight structure’ for numbers houses

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net RECENT downsizings are intended to make the Gaming Board “more relevant” and help it cope with the “seismic changes” created by web shops, a Cabinet minister said yesterday. Dionisio D’Aguilar, who has ministerial responsibility for gaming, told Tribune Business that the industry regulator will “look extremely different from the Gaming Board of today within five years”.

* MINISTER: CHANGES TO MAKE REGULATOR ‘MORE RELEVANT’ * GAMING BOARD WILL ‘LOOK VERY DIFFERENT’ IN FIVE YEARS * ‘92,000 DIDN’T VOTE FOR US TO MAINTAIN STATUS QUO’ He added that there was “no oversight infrastructure” in place to supervise

SEE PAGE 4

“The fact we’ve got no further downgrade is a good thing,” the Chamber chief said, “but it’s still no cause for celebration yet until we climb out of this hole and get back to the ratings we’re accustomed to.

“Our anticipation and hopes are, based on the things going on in the country; projects in the pipeline; and initiatives taken by the Government, we fully expect in the next review to see a much more positive report from S&P and other rating agencies.”

The Bahamas lost its ‘investment grade’ creditworthiness with S&P last Christmas after the rating agency downgraded it to ‘junk’ status due to weakerthan-expected economic growth and a slower pace of fiscal consolidation, coupled with the $4.2 billion Baha Mar project’s delayed opening.

Mr Sumner, though, cited the numerous fiscal and GDP growth-enhancing reforms being under taken by the Government and wider economy as the

rationale for why he “fully expects” the Bahamas’ sovereign credit rating to be upgraded in 2018.

The Minnis administration is targeting a 10 per cent cut “across the board” in the Government’s spending beyond the approved 2017-2018 Budget limits, having implemented a public sector hiring freeze while not renewing employment for temporary workers whose contracts have expired.

Mr Sumner pointed to the Government’s Public

Financial Management initiative and public procurement reforms as a further sign of its determination to rein-in public spending, and slash the fiscal deficit and national debt.

Noting its efforts to also improve data collection and national economic statistics, he said: “The way the Government is going about dealing with legacy debt issues, improving on revenue collection methods, are all things that need to be commended.

“We expect things to happen, and know there are some things in the pipeline. I fully expect to see, when these rating agencies

SEE PAGE 4

THE TRIBUNE

Friday, December 15, 2017, PAGE 3

Economist: Enterprises Bill $250k should be ‘bit higher’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Commercial Enterprises Bill’s $250,000 investment threshold should have been “a bit higher”, a University of the Bahamas economist argued yestrerday.

Rupert Pinder, addressing the Rotary Club of West

Nassau, said the $250,000 benchmark for foreign companies applying under the Bill did not match the level of incentives being granted.

“I was disappointed with the $250,000 threshold. If the intent is to attract foreign direct investment, when you look at some of the concessions being given by way of work permits and that sort of thing, in my

view the bar should have been set a bit higher,” he argued.

Officially known as an Act for the Designation of Commercial Enterprises and Specified Economic Zones in the Bahamas, the Commercial Enterprises Bill “seeks to liberalise the granting of work permits to an enterprise that wishes to establish itself in the Bahamas, and requires work

Economist backs spending cuts to end ‘major wastage’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net A University of the Bahamas economist yesterday backed government spending cuts on the grounds there has been “a great deal of wastage”.

Rupert Pinder, addressing a Rotary Club of West Nassau luncheon, said: “We cannot overemphasise the importance of economic growth. You can cut spending until the cows come home, but what is really going to put this economy on a strong footing is growth. I am a proponent for cuts in public spending because I think there has been a great deal of wastage.

“While making expenditure cuts you also have to look at ways to grow this

economy. While you are making cuts in terms of public sector spending, you also have to create opportunities within the private sector to absorb those persons. That is absolutely critical.

“We don’t emphasise that enough; the need to grow this economy.”

The Minnis administration has announced plans to cut recurrent spending across all ministries by 10 per cent, implement a hiring freeze and not renew any contracts for emoluments that exceed $100,000 a year.

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.

Deputy Prime Minister and minister of finance, K Peter Turnquest, previously told this newspaper that the Government is not targeting the IMF’s $70 million wage bill slash but it must right the Bahamas’ “upside down” economy.

Chamber chief urges holiday crime ‘vigilance’

By NATARIO MCKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive yesterday urged businesses and consumers to be “vigilant” and “take every precaution” to avoid becoming victims of crime this Christmas season.

Edison Sumner expressed concern over the “startling” increase in cyber crime and credit card fraud.

Speaking with Tribune Business on the sidelines of

a ‘Crime Free Christmas’ Symposium, he said: “We want to encourage businesses this holiday season to be very vigilant, and take every precaution to ensure that they protect themselves, their employees and their property.

“We did get some very startling insights on the level of cyber crimes and the level credit card fraud.

We were quite alarmed by that, and so we would admonish the business community -especially those involved in the retail sector - to be very cognisant of credit card transactions.

“While we encourage the

use of credit cards to mitigate against the attraction of having cash on property, they must also be equally as vigilant with credit cards because the police have informed us that the level of credit card fraud has increased over the last three years.

“The level of cyber crimes have also been on the increase.”

Mr Sumner encouraged businesses and consumers to check their bank accounts and statements frequently to ensure there were no unrecognised or unauthorised transactions going through.

permits for its management team and key personnel”.

The company’s investment, however, must be a minimum of $250,000.

The legislation enables a “specified commercial enterprise” to obtain an Investments Board certificate granting it a specific number of work permits for certain positions. The certificate, which will initially be issued for one year and can be renewed, would allow key personnel to set up the company’s physical operations in the Bahamas before they obtained a work permit.

Such a permit must be applied for within 30 days of their entry, and the bill mandates the Director of Immigration to make a decision on approval within 14 days of receiving the

application. If the director does not respond within that timeframe, the work permit will be “automatically deemed to have been granted”.

Work permits issued under the Bill’s provisions will be for a three-year period, and are renewable for the same duration.

Mr Pinder said he was disappointed by the level of debate over the Bill.

“For a piece of legislation that persons were arguing was supposed to be so revolutionary I was just surprised at the low level of debate,” he said.

“The other thing I expected a bit more debate with is the 14-day turnaround.

“The question is whether or not we have the resources in place to give that kind of turnaround.”

ADVERTISE TODAY IN THE TRIBUNE, CALL @ 502-2394

Clico (Bahamas) Limited (In Liquidation)

Will the following Policyholders please contact Clico at 502-2400 as soon as possible or visit the office at Mt. Royal Ave. Please bring your insurance policy with you and two Government issued photo IDs. No. Name

1 Aaliyah Thompson 2 Aaron Clarke 3 Albert Rolle 4 Albert Williams 5 Alelia Alicia Bain 6 Alexander Bullard 7 Allan Charlton Jr. 8 Allison Scavella 9 Alton L. Burrows 10 Alyiah Hilton 11 Amalia Johnson 12 Andre Smith 13 Andrick John 14 Angeline Dames 15 Ann Minns 16 Annastasia Walkine 17 Annie Penn 18 Anthony Arnett 19 Anthony Poitier 20 Anya Davis 21 Audley Rolle 22 Ava Colebrooke 23 Avard McGregor 24 Barbara Levarity 25 Barbara Williams 26 Barry Nairn 27 Bersel Musgrove 28 Bertram Evans 29 Bethsheba Rigby 30 Branhilda Bostwick 31 Branzelle Greene 32 Breatrice Moeashe 33 Brent Deveaux 34 Brevis Moss 35 Brittney Thompson 36 Byron Saunders 37 Caleb Ferguson 38 Candies Allen 39 Cardinal Lightfoot 40 Carlton Patterson 41 Carmie Ferguson 42 Carolyn Laurine Morris 43 Carolyn Neely 44 Casey Cargill 45 Catia Deveaux 46 Charlene Darling 47 Charlene Kemp 48 Charles Greenslade 49 Charles Kermit Cates 50 Charles McKenzie 51 Charles Sturrup 52 Charles Tanis 53 Charmaine Wells 54 Chenson Johnson 55 Cherfere Cherfere 56 Chervita Campbell 57 Christine Glinton 58 Christine Smith 59 Christine Williams 60 Christopher Minnis Sr. 61 Clarre Adderley-Sands 62 Clement Olson McKinney 63 Clementine Richardson 64 Cleon Ivan Bethel 65 Clint’Niqua Johnson 66 Clinton Barr 67 Cordero McKenzie 68 Cynthia Joseph 69 Daniela Roker 70 Danielle Thompson 71 Dave Miller 72 David Turnquest 73 Deandra Trinicia Sands 74 Deborah Green 75 Deborah Henderson 76 Degriga Ingraham 77 Delshon Rolle 78 Demicko Sherva Anderson 79 Denae Davis 80 Denise Curtis 81 Deon Rolle 82 Derico Mackey 83 Derrick Armbrister 84 Donald Thompson 85 Dorenda Gardiner 86 Douglas Cash 87 Dulcia Pennerman 88 Dushinka McIntosh 89 Dwight Barr Sr. 90 Dwight Newbold 91 Edmund Miller 92 Elisah Adderley 93 Elizabeth Cole 94 Elrich Walker 95 Elsie Swain 96 Elvado Wright 97 Elvis Roberts 98 Elvis Saunders 99 Emmerson Gardiner 100 Ernestine Juanita Douglas 101 Eryx Bowles 102 Ester Mae McQueen 103 Ethel Clarke 104 Eureka Sands 105 Forester Joseph Caroll 106 Francis Justice- Cumberbatch 107 Franklyn Taylor 108 Frederick McPhee 109 Fredericka Hamilton 110 Gaye Hepburn 111 George Wilkinson 112 Gerard Doney 113 Gerrard Jennings 114 Giovanni Barrett 115 Gladys Lightfoot 116 Glendina Whylly 117 Godfrey Clarke 118 Grenville Brathwaite 119 Helena Sawyer

No. Name

120 Henderson Ambrister 121 Henrietta Bastian 122 Hortense Saunders 123 Ian Mackey 124 Imani Bain 125 Indira Newbold 126 Ingrid Nixon 127 Isaac Rolle 128 Ivas Gaitor 129 Jacqueline Irene Bethel 130 Jacqueline Jackson 131 Jag Bahi 132 Jamahl Strachan 133 Jamal Johnson 134 Jane Johnson 135 Jane Williams 136 Jason Mackey 137 Jason Rolle 138 Javan Moultrie 139 Javan Rahming 140 Jeffery Gibson 141 Jennifer Davis 142 Jennifer Deveaux 143 Jennifer Jones 144 Jeremiah Prince Swain 145 Jeremy Gerard Penn 146 Jeremy Knowles 147 Jerome Pinder 148 John Alfred Dean 149 Johnson Alexander 150 Jonnae Penn 151 Joseph Smith 152 Joseph Wood 153 Judith Patterson 154 Karen Conliffe 155 Karen Theresa Lightbourne 156 Karen Wright 157 Karlen Bain 158 Karon Adderley 159 Kathlane Feaster 160 Kathrina Gardiner 161 Katrice Darville 162 Kaye Hepburn 163 Kayla Roberts 164 Kendal Farrington 165 Keno Baker 166 Kent Kerr 167 Kerry Bowe 168 Kevin Bowleg 169 Kevin Kemp Sr. 170 Kevin Reid 171 Kevin Smith 172 Kezia Saunders 173 Kim Rolle 174 Kim Thompson 175 Kimberlee Rahming 176 Kingsley Moxey 177 Kirkwood Bethel 178 Kista Joseph 179 Krishnell Rolle 180 Lakeisha Strachan 181 Larenzo Clinton 182 Lashan Austin 183 Latoya Brown 184 Leeworth Russell 185 Lennox Bourne 186 Leonard Johnson 187 Leonardo Martin 188 Leroy Higgs 189 Leroy Outten 190 Linda Juanita Munroe 191 Linda Miller 192 Lisa Fernander 193 Lisa Forbes 194 Llewelyn Miller 195 Llydrina Burrows 196 Loressa Balfour 197 Lovenia Brown 198 Lyndale Morley 199 Lynette Cash 200 Lynette Johnson 201 Lyrone Gibson 202 Marcia Miller 203 Marilyn Thompson 204 Mario Constantine Bethel 205 Marionette Poitier 206 Marlene Laroda 207 Marlin Malcolm Greene 208 Marlon Bodie 209 Marque Marque 210 Martin Saunders 211 Marvin Young 212 Matina McKenzie 213 Melvern Bastian 214 Melvern Pratt 215 Melverne Pratt 216 Merlina Ann Moss 217 Merline Miller 218 Merlyn Francis 219 Mersaida Tinker 220 Mia Moore 221 Michelle Sealey 222 Monique Joseph 223 Monique Miller 224 Monique Rahming 225 Nadajae Morris 226 Nagesh Shenoy 227 Naomi Cooper 228 Naomi Miller 229 Natario Johnson 230 Nathaniel Stubbs 231 Nichelle Bethel 232 Nicole Sabrina Evans 233 Nikita Taylor 234 Olivette Missick 235 O’Neil Thurston 236 Ordell Neely 237 Orient Edgecombe 238 Pamela St. Merant 239 Pamelyn Rolle 240 Patrae Williams 241 Patricia Cartwright

No. Name

242 Pauline Outten 243 Peggy Smith 244 Percia Plakaris 245 Perry Cleare 246 Petherina Rosemary Hanna 247 Philicia Brown 248 Philip Gardiner 249 Philip Rolle 250 Phillus Esperandieu 251 Prince Stubbs 252 Qutell Pennerman 253 Raphel Thompson 254 Raquel Simmons 255 Raymond Harvey 256 Rebecca Moxey 257 Rhonda Hanna 258 Robert Handford Darville 259 Rochelle Swaby 260 Roderick Johnson 261 Roderick Taylor 262 Roxybeth Whymns 263 Ruthmae Denicia Rolle-Davis 264 Ryan Baker 265 Sandra Rahming 266 Schanel Stuart 267 Shaketra Smith 268 Shamara Johnson 269 Shamel Yvonne Sands 270 Shanique Cooper 271 Shanon Damallie 272 Shara Kikivarkis 273 Sharan Bourne 274 Sharinda Ferguson 275 Sharlene Clarke 276 Sharmaine Butler 277 Sharon Rolle 278 Shearine Riley 279 Shecoya Turnquest 280 Shedrach Cox 281 Shekera Turnquest 282 Sheran Bourne 283 Sherell McKinney 284 Sherell Rolle 285 Sheveron Tucker 286 Shirann Smith 287 Shirley Clarke 288 Shirley Newton 289 Shonique Gibson 290 Sidney Knowles 291 Sidney Smith 292 Silvester Demeritte 293 Simon Damallie 294 Sofia Thompson 295 Sonia Jones 296 Sonia Miller 297 Stafford Smith 298 Stephan Horton 299 Stephen Dean 300 Sterling Evans 301 Sylvainsky St. Merant 302 Tameko Gibson 303 Tammi Wood 304 Tanya Young 305 Tatum Thompson 306 Tayna Edgecombe 307 Tekenia Taylor 308 Tenaj Bethel 309 Terrance Outten 310 Terranice Flowers 311 Teruco Tynes 312 Te-Shalla Clarke 313 Thelma White 314 Theophillus Rolle 315 Theota Williams 316 Thereisa Glinton 317 Therez Laverne 318 Therez Laverne Edgecombe 319 Theron Hepburn 320 Theron Mark Hepburn 321 Thomas Jacques 322 Tiffany Lynette Tynes 323 Tina Cargill 324 Torin Strachan 325 Travaughn Horton 326 Trenell Thompson 327 Trevor Lowe Jr. 328 Trevor Wallace 329 Trivena Davis 330 Troy Laroda 331 Troy McPhee 332 Tyrone Brown 333 Uriah Gibson 334 Valaria Stuart 335 Valentino Ferguson 336 Valentino Nottage 337 Valerie Lanthe Stubbs 338 Valerie Smith 339 Vanderlee Rolle 340 Vaughn Marvin Gibson 341 Velma Anastasia Russell 342 Vernita Storr 343 Vernon Smith 344 Victonio Knowles 345 Victoria Lewis 346 Vincent Hepburn 347 Viona Major 348 Virginia Knowles 349 Vivian Johnson 350 Wellington Brown 351 Wendal Adderley 352 Wendy Walker 353 Wentworth Roberts 354 Willamae Farrington 355 William James 356 William Pearce 357 Winston Rolle 358 Winston Whylly 359 Xaviera Gibson 360 Yacintha Saunders 361 Yevette J. Rose 362 Yolanda Bodie 363 Yvonne Bowleg 364 Yvonnette John

PAGE 4, Friday, December 15, 2017

THE TRIBUNE

‘No cause for celebration’ over S&P breathing room FROM PAGE 1 present their first reports for 2018, much better results than for the last three years.”

Asked by Tribune Business whether he expected the Bahamas’ sovereign rating to be upgraded next year, Mr Sumner replied: “I absolutely hope so.

“Unless and barring any major catastrophe that comes about unexpectedly, I fully expect that when we see these country reports again there will be an improvement in our competitiveness, an improvement in our sovereign rating, and an improvement in our ease of doing business.”

Robert Myers, a principal with the Organisation for Responsible Governance (ORG), told Tribune

Business that S&P’s report and rating action had effectively given the Bahamas “breathing room” to deliver on its economic growth and fiscal consolidation plans.

Describing its decision not to further downgrade the Bahamas as “awesome” and “great news”, he argued that S&P could easily have taken a much harder line last Christmas and cut this nation’s rating by more than one notch.

“I think they’re giving us breathing room, reading between the lines,” Mr Myers said.

“They’re [S&P] encouraged by what they see and hear, and are giving us some breathing room.

“I think they gave us a pass last time; they could have been harsher. They recognise everybody’s

working on righting the ship, and it’s going to take time to do that. There’s a long way to go, but a lot of people have got their sleeves rolled up.”

Mr Myers added that the Government had shown, through its actions and public statements, that most Cabinet ministers “understand the dire circumstances we’re in”.

S&P and its fellow rating agency, Moody’s, measure the creditworthiness of the Bahamas and other countries based on their ability to repay and service debt.

This nation’s downgrade to ‘junk’ status last December indicated that the Bahamas’ ‘risk profile’ had increased when it came to repaying its creditors.

The loss of ‘investment grade’ was damaging for

this nation and its economy, as it sent negative signals to foreign investors and the international capital markets about the credibility of the Government’s economic management and the Bahamas’ security as a place to invest.

The ‘junk’ downgrade has also meant the Government had to pay more for its debt, including the recent $750 million bond issue, which was priced at a 6 per cent interest coupon - a rate some 2.5 per centage points higher than the last time it borrowed on the global markets.

This, in turn, raises the Government’s alreadyhigh debt servicing (interest) costs, sucking money away from essential public and security services.

S&P’s decision to maintain the Bahamas’ current

rating indicates this nation may have ‘bottomed out’ when it comes to downgrades, but also that the rating agency wants to see it deliver and execute on its economic growth and fiscal consolidation plans.

Mr Sumner yesterday said that many Bahamians “don’t appreciate the gravity of what’s going on” in terms of the wide-ranging reforms the Government is making, or exploring, to the country’s taxation structure and the whole way it conducts business.

“The Government has a lot of work to do in cleaning up its own house,” he told Tribune Business, explaining that it needed to eliminate bureaucracy, improve the processing of business-related approvals and focusing on enhancing

workforce skills and productivity.

Emphasising that the private sector wanted to work with the Government in building up the Bahamian economy, Mr Sumner said: “Don’t expect the private sector to bear the brunt of improving the economy.

Government has to realise, and fully understand, the challenges of the private sector.”

The Chamber chief said he was “anxious” to see both the Government’s mid-year and 2018-2019 Budgets, and especially the latter, since it was the first that the Minnis administration can claim true ownership of.

“We expect to see the Government fully outline its plans to grow the economy and take the country further,” he added.

Gaming Board lacks ‘oversight structure’ for numbers houses FROM PAGE 1 the web shops that were legalised by the former Christie administration in 2014 - a situation he hoped to start correcting within the next 12-24 months.

Mr D’Aguilar said the Gaming Board had to rapidly adjust and transform to the new technology-based era, which would require inspectors and analysts with a much-different skill set than in the past. “While it’s extremely painful to

downsize, I don’t think 92,000 people voted for us to keep the status quo,” he told Tribune Business in reference to the recent 30 Gaming Board lay-offs.

“I think 92,000 Bahamians voted for us to look at all the Government entities and see where changes needed to be made.

“No industry has changed more than the gaming industry. The driving force in the gaming industry is now the oversight and regulation of what were previously called numbers

NOTICE

NOTICE is hereby given that NIKO IMBERT of Armbrister Street, Fox Hill, 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 8th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE GREEN VALLEY PROPERTIES LTD. N O T I C E IS HEREBY GIVEN as follows: (a) GREEN VALLEY PROPERTIES LTD. is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 13th December, 2017 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Mr. Ali Nadeem Mohamed Tayeb, Al Yass, Villa No. 5, Dubai Marina, Dubai, United Arab Emirates Dated this 15th day of December, A. D. 2017 _________________________________ Bukit Merah Limited Liquidator NOTICE

houses. That’s an online business. What we were doing traditionally isn’t relevant any more.

“We’ve got to go out and say: Let’s adjust, let’s change, let’s put in the necessary oversight and regulation, and find the people we need to implement it.”

Mr D’Aguilar thus backed the rationale previously given for the lay-offs by Gaming Board chairman Kenyatta Gibson, who said the terminations which followed the earlier release of 17 persons whose temporary contracts had expired - came following completion of a manpower assessment of the overstaffed agency.

Mr Gibson said that, over the past four years, staffing levels at the Gaming Board had increased by 40 per cent. He also said the regulator was focused on hiring persons with the skill

sets to properly supervise the sector.

“To send in an inspector to inspect a web shop location: What does that mean?” Mr D’Aguilar said yesterday. “Check the lavatories? You’ve got to check the computer systems and go from there.

“That’s where you provide the oversight, that’s where you make the inspection and check what the gaming house is doing what’s it’s supposed to be doing in terms of paying taxes, winnings. These are all electronic, and we have to understand and learn that business.

“This is an area that’s been in transition from 2014. There was a seismic change in the gaming business in this country, and we need to adjust and assimilate to provide real oversight. It is not an inspector entering a numbers house and walking

NOTICE

NOTICE is hereby given that CHERRY ANN MARTIN of 10 Oxford Street, Nassau, 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 15th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that ANDY MARCELLUS of Eight Mile Rock, Grand Bahama, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 8th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

International Business Companies Act (No. 46 of 2000)

Ivy Lane Inc. Registration Number: 149190B (In Voluntary Liquidation) Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 46 of 2000) Ivy Lane Inc. commenced voluntary liquidation on the 13th day of December, 2017.

Any person having any claim against Ivy Lane Inc. is required on or before the 27th day of December, 2017 to send their name, address and particulars of the debt or claim to the Liquidator of the company, or in default thereof they may have excluded from the benefit of any distribution made before such claim is approved.

GSO Corporate Services Ltd., of 303 Shirley Street, Nassau, The Bahamas is the Liquidator of Ivy Lane Inc. GSO Corporate Services Ltd. Liquidator

Pursuant to the provisions of Section 138 (8) of the International Business Companies Act (as amended), NOTICE is hereby given that Obago Holdings Limited has been dissolved and has been struck from the Register with effect from 8th November, 2017.

around to make sure everything’s good.”

Mr D’Aguilar said everything was geared towards “making the Gaming Board more relevant in 20172018”, and he conceded that it currently has “no oversight infrastructure” for the web shop industry.

“How do you provide oversight? What is the process by which you provide oversight? We need to determine how that’s going to be done and build that capacity,” the Minister told Tribune Business.

This, he emphasised, required “tech savvy” regulators, and he added: “I don’t envision the Gaming Board headcount getting any less; it’s just going to have to change.

“There’s going to be a change in the skill set of a Gaming Board employee.

People say: ‘You can retain them’, but not necessarily. It’s difficult to retrain

somebody who’s not had an full background in IT. “We need to build our oversight infrastructure.

What is oversight going to look like? How do you do that given that, in essence, these companies are online?”

Mr D’Aguilar said he wanted the Gaming Board to start building this ‘infrastructure’ within the next 12-24 months, and added: “The Gaming Board of five years from now will look extremely difficult from the Gaming Board of today.

“Even though the political pundits will come in and say: ‘This is unacceptable’, you have to adjust and rework yourself.”

Mr D’Aguilar said the Government’s economic policies would hopefully create private sector jobs that those released from the Gaming Board and the other government entities can fill.

NOTICE

NOTICE is hereby given that FENDI FANNETTE LEBRANT SINORD of 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 15th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that KENSON JEAN LOUIS of Marsh Harbour, Abaco, 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 15th day of December, 2017 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.

NOTICE

NOTICE is hereby given that LUCKNER EMMANUEL of Cowpen Road, Martin Close, 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 8th day of December, 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 Lynn Kelly and Anya Williamson LIQUIDATORS c/o EFG Bank & Trust (Bahamas) Ltd Goodman’s Bay Corporate Centre, 3rd Floor West Bay Street and Sea View Drive P.O. Box CB 10956 Nassau, Bahamas

The public is hereby advised that I, Valentino Maurice Allen, of Winton Meadows, Nassau, Bahamas, intend to change my name to Tau Emanuel Rahming. 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, Bahamas no later than thirty (30) days after the date of the publication of this notice.

THE TRIBUNE

Friday, December 15, 2017, PAGE 5

DPM: Bahamas must ‘prove’ itself to S&P FROM PAGE 1 the Bahamas’ creditworthiness to ‘investment grade’. “We expect the new administration’s solid mandate to facilitate economic and debt stabilisation after significant deterioration,” S&P said, referring to the Government’s landslide general election win.

“The rating on the Bahamas reflects the country’s high external liquidity needs and debt levels - which are rising - and a stagnant economy that has lost competitiveness over the past decade. This deterioration has led to weakened public finances and higher debt levels. Nevertheless, the country’s strong institutional foundation continues to provide necessary checks and balances that have prevented further erosion to creditworthiness.”

S&P warned that it could further slash the Bahamas’ credit rating over “the next one to two years” if the Government’s finances “do not improve as quickly as expected”.

“This could result from stagnant economic growth, external shocks or weakened political commitment,” the rating agency added. “The lack of confidence that this may generate could push debt costs higher, leading to a downgrade.

“Conversely, we could raise the rating over the same timeframe if the Government reduces the annual increase in general government debt beyond our expectations. This, combined with significantly higher economic growth forecasts, could lead to an upgrade.”

As for the ‘stable’ outlook, S&P said: “The stable outlook balances the challenges of overcoming the country’s stubborn economic bottlenecks with the Government’s fiscal consolidation plans.

“The stable outlook reflects our expectation that robust political institutions will anchor fiscal consolidation and higher, albeit low, economic growth over the next one-to-two years.”

S&P is thus taking a similar stance to Moody’s, its fellow credit rating agency, by placing the Bahamas ‘on probation’ for the next 12-24 months to see whether the Government can execute on its economic and fiscal strategies.

It is effectively giving the Minnis administration ‘breathing space’ to deliver on its promises, having been relatively impressed by its plans, but now adopting the mantra: ‘You’ve talked the talk; now walk the walk’.

Mr Turnquest, prior to S&P’s visit, said the Government planned to use the recent successful $750 million bond placement to “make the most compelling case we can” for a ratings upgrade.

That did not materialise and, asked whether he was disappointed, Mr Turnquest told Tribune Business: “No, not at all. I understand the rationale they gave.

“It’s up to us to prove, and show, the plans we’ve outlined are going to make a difference.

“I understand and appreciate that the rating was held stable given all the circumstances, which are mostly external, and I think it’s a good result.”

The Deputy Prime Minister then hit out at the former administration’s fiscal performance, accusing it of making numerous promises to rein-in its deficit spending and the national deficit, but failing to deliver.

“The truth of the matter is they’ve [S&P] been given big stories in the past that have not been followed through on with any level of commitment, so it’s not unreasonable that they have a level of scepticism,” he told Tribune Business.

“It’s our job to follow through with action on the plan, and that’s what we intend to do and are committed to do. I don’t take comfort from any of this.

We recognise there’s a lot of work to be done.

“This is a good interim result, and we appreciate the fact they’ve agreed the plans we’ve laid out have credibility, and it’s our responsibility to put them into action. This is not easy.

There are many requirements before us that we have to wrestle with, ensure we don’t allow bad habits to return, and achieve the best result we can for the Bahamian people.”

Mr Turnquest added that he welcomed S&P’s “confidence in the plan” laid out by the Government to set the Bahamas back on track, and said: “It’s not particularly glamorous work.

“It’s grunt work. It’s hard work. The team at the Ministry of Finance is committed to producing a favourable result.”

He said the Government’s fiscal performance for the 2017-2018 Budget year to-date was “pretty much on track”, adding:

“There are still some things out there that could cause issues, but at this particular point we’re fairly comfortable with where we are.”

The Minnis administration, though, was slightly more upbeat in its official reaction to the S&P report and rating action, describing it as a sign of confidence that the Government is “putting the country on the path to sustainable recovery”.

“We have outlined our fiscal consolidation plan, which will lead to shrinking deficits and put the country’s debt trajectory on a sustainable path,” Mr Turnquest was quoted as saying.

“These include sustained and strategic revenue enhancement measures as well as targeted cuts in

expenditure.”

Affirming that the Government will take “even unpopular” measures to set its finances and the economy “back on track”, the Deputy Prime Minister laid out upcoming actions it plans to take.

To improve the efficiency and “cost recovery” of state-owned enterprises (SOEs), and ensure they can stand on their ‘own two feet’, the Government will create a “financial oversight framework” for them in early 2018 to reduce the drain on Bahamian taxpayers.

Public-private partnerships (PPPs) will be used to finance and deliver major public infrastructure projects, in a bid to reduce the Government’s capital outlay and risk exposure.

The Government statement also confirmed that Fiscal Responsibility legislation, including so-called ‘Fiscal Rules’ to act as a check on runaway public spending, will “be in place” by mid-2018.

Mr Turnquest said the Government was “systematically tackling” impediments to the conduct and opening of business, promising that the public will “learn much more” about its plans and the work of the ‘Ease of Doing Business’ committee in the New Year.

He added that foreign and Bahamian investors were “very forthright” in their support of the Government’s “commitment to transparency, integrity and facilitation of business”.

DEVELOPMENT BANK FUND ‘SINKING’: COVERS 1/3 OF $46M BONDS FROM PAGE 1 fund’, which was created to set aside money to repay the BDB’s two bond holders, is substantially under-funded compared to the principal owed.

The ‘fund’ contained just $15.608 million worth of assets, mainly Bank of the Bahamas (BOB) deposits, at end-2016 compared to the $46 million principal owed to the National Insurance Board (NIB) and Central Bank of the Bahamas.

NIB, which holds $42 million worth of BDB bonds, is by far its largest creditor.

The financial statements note that NIB was paid the $3 million that came due during 2017, but there is a $30.028 million deficiency between the principal owed and the ‘sinking fund’s’ assets.

Unable to service its obligations itself, the BDB has become increasingly reliant on the Government (taxpayer) to make principal and interest payments on the bonds - and $3.674 million in other long-term loans - on its behalf.

The Government made $1.898 million in such payments during the 2016 calendar year, helping to increase the total sum owed by the BDB to the Public Treasury to $21.453 million at year-end.

The ‘sinking fund’ deficiency, coupled with the sum owed to the Government, explains why the BDB’s chairman, Lynden Nairn, told Tribune Business back in October that “everything turns” on its ability to restructure $64 million in long-term debts.

He added that negotiations with NIB and the Central Bank over the remaining $43 million bonds were geared towards giving the BDB “breathing room”, which likely involves extending the maturity/principal repayment date (a debt rollover) and lowering the interest rate coupon.

Emphasising that the BDB was not asking institutional investors to write-off their investments, Mr Nairn said then that the Board’s recapitalisation plans also rely on the Government agreeing to convert its $21

million debt into a larger equity position in the bank.

The BDB’s room for manoeuvre, though, is restricted by the fact that 71.6 per cent of its gross loan book was either nonperforming, or represented ‘extraordinary advances’ and credit to employees, at year-end 2016.

Some $22.731 million worth of loans were classified as non-performing, meaning they were at least 90 days past due, while just $9.935 million worth of credit was current. Heavily indebted and struggling to service its obligations, and with the majority of borrowers delinquent, the BDB has little funding through which to extend credit to new entrepreneurs and stimulate economic growth through the small and medium-sized enterprise (SME) sector.

BDB’s accounts showed that one loan, “due from family members of key management personnel” and worth $73,197, was non-performing at year-end 2016. It was said to be fully secured, with an interest rate of 10.5 per cent.

Total loan loss provisions stood at $13.8 million at year-end 2016, reducing the size of BDB’s net outstanding loan portfolio to just $21.162 million. For the 12 months to December 31, 2016, BDB’s total comprehensive loss fell by 42 per cent to $1.878 million from $3.23 million in 2015, due largely to a $1.585 million ‘swing’ on loan recoveries.

The Minnis administration has set 2020 as a deadline for the BDB to ‘stand on its own feet’, whereby it will cease paying the $3 million annual interest payments to NIB and the Central Bank on its behalf.

Asked previously whether the BDB could achieve the Deputy Prime Minister’s three-year ‘selfsufficiency’ 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.”

MARKET REPORT WEDNESDAY, 13 DECEMBER 2017

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

BISX ALL SHARE INDEX: CLOSE 2,064.71 | CHG 0.00 | %CHG 0.00 | YTD 126.50 | YTD% 6.53 BISX LISTED & TRADED SECURITIES 52WK HI 4.38 19.17 9.09 3.70 1.77 0.16 5.60 8.70 6.30 5.30 12.00 2.59 1.60 6.01 10.55 11.00 4.50 7.25 12.51 11.00

52WK LOW 4.22 17.43 8.19 3.50 0.95 0.12 3.50 8.40 5.83 3.15 9.00 2.18 1.40 5.82 8.78 5.67 3.35 6.61 12.01 10.00

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

1000.00 1000.00 1000.00 1000.00

1000.00 1000.00 1000.00 1000.00

Cable Bahamas Series 6 Cable Bahamas Series 8 Cable Bahamas Series 9 Cable Bahamas Series 10 Colina Holdings Class A Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Commonwealth Bank Class Fidelity Bank Class A Focol Class B

PREFERENCE SHARES

1.00 103.00 100.00 106.00 105.00 103.00 100.00 10.00 1.01

1.00 100.00 100.00 100.00 105.00 100.00 100.00 10.00 1.00

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

E J K L M N

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

52WK LOW 100.00 100.00

CAB6 CAB8 CAB9 CAB10 CHLA CBLE CBLJ CBLK CBLL CBLM CBLN FBBA FCLB

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

SYMBOL FBB18 FBB22

Bahamas Note 6.95 (2029) 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 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

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

MUTUAL FUNDS 52WK HI 2.10 4.12 1.98 176.30 149.66 1.52 1.69 1.61 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 1.46 1.62 1.56 1.04 6.41 7.62 5.66 8.65 10.54 9.57

LAST CLOSE 4.30 17.43 9.09 3.68 0.95 0.16 3.70 8.60 6.10 4.92 9.00 2.56 1.52 6.00 10.55 6.00 4.49 7.01 12.51 10.00

CLOSE 4.30 17.43 9.09 3.68 0.95 0.16 3.70 8.60 6.10 4.92 9.00 2.56 1.52 6.00 10.55 6.00 4.49 7.01 12.51 10.00

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 0.00 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

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

LAST SALE 100.00 100.00

CLOSE 100.00 100.00

CHANGE 0.00 0.00

109.24 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.10 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

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

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 20

8,500

VOLUME

NAV 2.10 4.12 1.98 176.30 149.66 1.52 1.69 1.61 1.09 6.97 8.00 6.25 10.96 11.60 10.08

EPS$ 0.444 0.932 -0.223 0.540 -1.220 0.000 -1.462 0.611 0.583 0.196 0.631 0.102 0.392 1.217 0.729 0.484 0.310 -0.668 0.543 0.000

DIV$ 0.080 1.130 0.000 0.230 0.000 0.000 0.000 0.300 0.220 0.120 0.570 0.060 0.050 0.290 0.500 0.000 0.120 0.140 0.580 0.000

P/E 9.7 18.7 N/M 6.8 N/M N/M -2.5 14.1 10.5 25.1 14.3 25.1 3.9 4.9 14.5 12.4 14.5 -10.5 23.0 0.0

YIELD 1.86% 6.48% 0.00% 6.25% 0.00% 0.00% 0.00% 3.49% 3.61% 2.44% 6.33% 2.34% 3.29% 4.83% 4.74% 0.00% 2.67% 2.00% 4.64% 0.00%

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

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

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

INTEREST 6.00% Prime + 1.75%

MATURITY 31-May-2018 19-Oct-2022

6.95% 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 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% 3.64% 4.40% 5.32% 5.91% 1.94% 2.46% 4.66% 3.89% 5.58% 6.65% 3.57% 4.29% 1.59% 2.22% 2.65% 3.25% 3.83% -1.09% -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-Oct-2017 31-Oct-2017 27-Oct-2017 30-Sep-2017 30-Sep-2017 31-Oct-2017 31-Oct-2017 31-Oct-2017 31-Oct-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017 30-Sep-2017

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

YIELD - 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

THE TRIBUNE

Friday, December 15, 2017, PAGE 7

S&P: Gov’ts fiscal, economic reforms ‘will take time’ to work FROM PAGE 1

It added that the “strong mandate” granted by the Government’s May 2017 general election victory had created a ‘window of opportunity’ in which to implement fundamental reforms, and set the Bahamas on a new economic and governance track.

However, S&P’s warning that the reforms will take time to pay off is likely to alarm the Minnis administration, given that increasingly fickle Bahamian electorates are demanding instant results and improvements in their daily lives. As a result, the ‘honeymoon period’ for incoming governments has shortened considerably.

“We expect that the measures implemented under the new administration should arrest the deterioration in the Bahamas’ fiscal deficit and debt levels,” S&P’s newlyreleased report said.

“Winning 35 of 39 seats in the lower house, the FNM was elected with a strong mandate to rein-in government spending, reform the public sector and encourage private sector growth.

Strong political capital will likely facilitate reforms early in the Government’s tenure. However, we think that it will take time to see the dividends of these reforms translate into sustainable public finances and higher economic growth.”

S&P also projected that the Bahamas will see only “slightly higher real GDP growth” over the next three years, pegging this at an average of 1.4 per cent.

The rating agency is forecasting that the Bahamian economy will expand by 1 per cent this year, and by 1.5 per cent in both 2018 and 2019. These estimates are lower than the International Monetary Fund’s (IMF), which in its October outlook predicted that the Bahamas will see GDP growth of 1.8 per cent and 2.5 per cent in 2017 and 2018, respectively.

“New room capacity and ongoing tourism projects will lead to slightly higher real GDP growth, averaging 1.4 per cent annually, over the next three years,” S&P projected. “However, growing regional competition in tourism, exposure to weather-related shocks, high energy costs, still-high non-performing loans that clog private sector lending, and high household indebtedness will continue to constrain growth.”

Turning to the $4.2 billion Baha Mar project, S&P added that the development would “need time to [get up to] full capacity” with a further 1,300 rooms scheduled to become operational in 2018.

This followed a net 1,000 room increase in 2017, but the rating agency said Baha Mar’s impact would be partially offset by the Grand Lucayan’s continued closure. It added that this had taken “nearly 1,000 rooms out of commission in Grand Bahama” - a figure equivalent to 7 per cent of the Bahamas’ total hotel room inventory.

While praising the Minnis administration for its commitment to strengthen the public finances, “improve the transparency and accountability of government” and enhance businesses processes, S&P warned it had much to do in addressing the economy’s structural bottlenecks.

“The economy’s falling real GDP per capita growth over the past decade reflects structural challenges that will be difficult to overcome in the near term,” S&P warned. “This growth is lower than that of peers with similar levels of income.”

While the recent revisions to the Bahamas’ GDP data had increased GDP per capita by around 27 per cent compared to previous estimates, the rating agency added it had also exposed

the economy’s three-year recession from 2013-2015.

“The new information also reveals more volatile and significant contractions over the past several years,” S&P added. “In our view this largely reflects the economy’s concentration in tourism.

“The sector, which has suffered from weatherrelated disruptions, delays in major tourism projects, and a general loss in competitiveness, directly represents about 20 per cent, and indirectly close to 50 per cent, of the Bahamas’ GDP.” On the fiscal front, S&P argued that the Government’s planned 10 per cent spending cut ‘across-theboard’, together with hiring freezes and the non-renewal of contracts for temporary workers, would “reverse” the Christie administration’s pre-election spending binge.

The Minnis administration’s last forecast pegged the 2016-2017 fiscal deficit at $695 million, equivalent to nearly 7 per cent of GDP, and S&P said: “Recent public sector spending measures will bring the deficit down to more sustainable levels in our view.

“We expect that these cuts, together with the impact of one-off posthurricane spending and revenue measures that will not reoccur in the current

fiscal year, will lead to a 3.2 per cent of GDP deficit in 2017-2018.”

This estimate is in line with the Government’s own $323 million projection, but S&P indicated that eliminating the fiscal deficit will occur at a slower pace than the Government is estimating.

“Spending controls, which should benefit from new Fiscal Responsibility legislation and strengthened revenue collection, will continue to reduce the deficit,” the rating agency added.

“We forecast that the deficit will average 2.2 per cent of GDP over the next three years. Excluding the impact of the most recent Bank of the Bahamas (BOB) bailout, we expect that these deficits will lead to an average change in general government debt to GDP of 3.6 per cent from 2017-2020.”

S&P is thus projecting that the $7 billion-plus national debt will continue to rise in the period to 2010, with direct government debt hitting 52 per cent of GDP. “Significant financing needs in 2017 will push the Bahamas’ net general government debt to 48 per cent of GDP in 2017 from 42 per cent in 2016,” it said. “Thereafter, we expect more moderate deficits

will slow the debt burden increase.

“We forecast that net debt will reach 52 per cent of GDP by 2020. At the same time, we expect general government interest payments will average 12.5 per cent of general government revenues from 2017-2020.”

S&P noted that the Government has spent more than $300 million on ‘bailing out’ Bank of the Bahamas (BOB), while the recent $750 million bond would increase this nation’s external debt.

“This issuance adds to the central government’s $900 million in external bonds outstanding,” the rating agency said. “Following this new debt, we expect the external debt of the public and financial sectors, net of useable reserves and financial sector external assets, to rise to nearly 58 per cent of current account receipts (CAR) in 2017.

“These figures do not include the external debt and foreign direct investment in the islands’ substantial tourism sector.”

S&P continued: “Beyond increasing external debt, large external liquidity needs and errors and omissions continue to contribute to a weak external profile.

Errors and omission have increased significantly, accounting for nearly 70 per cent of the current account

deficit (CAD) in 2016, compared with 7 per cent five years ago.

“Based on the gross external liabilities of the country’s large banking sector, we expect the gross external financial needs of the public and financial sectors to reach 331 per cent of current account receipts (CARs) in 2017. This

reflects the still-high CAD and the financial sector’s high rollover needs.

“However, we consider the sector’s external assets highly liquid, which somewhat diminishes liquidity risk. We expect external liquidity needs to decline over the next three years, but remain above 300 per cent of CAR through 2020.”

Here Comes Santa Claus JOIN US FOR SOME FESTIVE FUN AS WE WELCOME SANTA TO BAHA MAR! BRING YOUR CAMERA & A SMILE TO CAPTURE THIS MEMORABLE FAMILY MOMENT! DECEMBER 20 & 21, 2017 5:00PM - 8:00PM GRAND HYATT WEST LOBBY STAIRCASE