12232016 business

FRIDAY, DECEMBER 23, 2016

business@tribunemedia.net

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NIB creates new fears of ‘fiscal crisis’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

IDB alarm at unfunded liabilities equal to 50% GDP

The National Insurance Board’s (NIB) unfunded liabilities “could trigger a fiscal crisis” beyond the-near $7 billion national debt within the next 12 years unless radical reforms are enacted, the Inter-American Development Bank (IDB) has warned.

Primary surplus likely to become 0.7% deficit in 2017

The Bank, in its latest Caribbean Quarterly Bulletin, said NIB’s funding deficit - equivalent to 50 per cent of the Bahamas’

$8 billion GDP - represented a “large increase” in the national debt, and ma-

Urgent reform ‘remote’ postMatthew damages

jor “downside risk” to the economy, without corrective action.

It added, though, that near-term reforms appeared unlikely, given the Government’s pre-occupation with Hurricane Matthew recovery, weak economic growth and still-high unemployment, which has now been exacerbated by Standard & Poor’s (S&P) downgrading the Bahamas to ‘junk’ status.

“Beyond the medium term, the national insurance system could pose a risk See pg b7

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Rate cut can’t be ‘knee jerk’ S&P reaction

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

John Rolle

The Chamber’s chairman warned yesterday that the Central Bank’s 50 basis point interest rate cut, designed to tackle anemic economic growth, “must not be seen as a knee jerk reaction” to the Bahamas’ new ‘junk’ status.

Gowon Bowe told Tribune Business that the regulator should publish details of all the deliberations leading up to yesterday’s announcement, so Bahamians See pg b4

Chamber chief: Central Bank’s move ‘long in works’ Govt debt biggest beneficiary from stimulus move Governor: No ‘unsustainable credit expansion’ But 50 basis pt drop creates ‘winners and losers’

Governor: Rate cut Popeyes targets 60 jobs at third store ‘not influenced’ by By NATARIO McKENZIE Eyeing Robinson nmckenzie@tribunemedia.net Road site by 2017 S&P’s junk action second quarter Tribune Business Reporter

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

The Central Bank’s governor has refuted charges that yesterday’s 50 basis point interest rate cut was sparked by the Bahamas’ ‘junk’ downgrade, describing the timing as “coincidental” and “not influenced by S&P”.

John Rolle told Tribune Business that the Central Bank’s decision to reduce the Discount Rate was its own, and not prompted by pressure from a Christie administration desperate to counter the Bahamas’ loss of investment grade status.

“The timing of the Central Bank’s decision is coincidental to, and not influenced by, the S&P ratings action,” Mr Rolle said of the 0.5 percentage point cut

Describes timing as ‘coincidental’ Loretta: Did Central Bank compromise autonomy Analyst says timing ‘makes no sense’ for business to the Discount Rate.

“The Bank undertakes its own economic analysis to weigh the timing of policy changes.”

Mr Rolle’s response to e-mailed questions from Tribune Business came after Opposition politicians described the Central Bank’s action as an obvious response to the S&P See pg b5

Governor: S&P move no devaluation threat

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Central Bank’s governor yesterday reassured Bahamians that their dollar is at no risk of devaluation because of Standard & Poor’s (S&P) decision to downgrade this nation to ‘junk’ status.

John Rolle confirmed to Tribune Business that “the fundamentals” underpinning the one:one fixed exchange rate peg will not change due to S&P, with the $928.6 million foreign currency reserves almost 50 per cent above international benchmarks.

“The ratings action has no direct impact on the already established outlook for external reserves which provide the support for the dollar,” Mr Rolle said.

“The fundamentals do not change because of the ratings opinion.”

The Central Bank said the Bahamas’ loss of investment grade status with S&P would “not exert pressure on the sustainability” of the Bahamian dollar’s exchange rate peg, with the rating agency’s decision based on economic growth and fiscal indicators.

“It will, however, cause increases in the interest costs on some existing external debt and present some higher costs for new debt,” the Central Bank added, revealing that the impact of S&P’s actions has been felt immediately in the Government’s debt servic-

Says external reserve ‘fundamentals’ still sound At near-$930m, almost 50% above global standard National debt up $262m in year to end-Sept 2016 ing costs.

The monetary policy ‘guardian’, meanwhile, said the opening of Baha Mar and other foreign direct investment-related hotel projects, would boost foreign currency inflows in 2017 and 2018, with reinsurance monies related to Hurricane Matthew claims payouts having a more immediate impact.

“External reserves currently stand at an estimated $928.6 million or approximately 17.4 weeks of merchandise imports, compared to the 12 weeks international benchmark,” the Central Bank said.

“Modest declines in external balances are still expected from these levels over the remainder of the year. However, the start of the winter tourist season should precipitate the traditional build-up in reserve levels.”

It added that the forthcoming implementation of See pg b8

POPEYES Bahamas is eyeing the opening of a third restaurant on Robinson Road by the 2017 second quarter, an expansion that is expected to create 60 jobs.

Terry Tsavoussis, vicepresident of Aetos Holdings, the investment vehicle headed by himself and his brother, Chris, which also owns the Wendy’s and Marco’s Pizza franchises, made the announcement as they unveiled the second Popeyes Louisiana Kitchen restaurant on Carmichael Road in time for Christmas.

He told Tribune Business that the opening of the second Popeyes restaurant had brought the total employment created by their latest Bahamas franchise to 185.

The Carmichael Road opening, according to the brothers, has brought $3 million worth of investment into the fast-growing local community.

Latest Carmichael store already ‘beats expectations’ Franchise now employs 185; Carmichael spend $3m

Dr Danny Johnson, Minister of Youth, Sports and Culture with the proprietors of the new Popeyes location.

The first Popeyes restaurant opened on Prince Charles Drive last December and, according to Cheryl Bachelder, Popeyes Louisianna Kitchen’s global chief executive, set sales records.

Terry Tsavoussis told Tribune Business that the second outlet, which opened to customers on Wednesday, has already “exceeded our expectations”.

See pg b8

PAGE 2, Friday, December 23, 2016

THE TRIBUNE

Retaining the passion among your workers Every employer wants to retain passionate, committed employees who demonstrate a high degree of loyalty to the company, its goals and objectives. Research continually reminds us of the direct correlation

Holiday office hours

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1. Avoid intimidation tactics and policies. Allow employees to make mistakes in a secure environment.

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between passion and productivity. When people are motivated and enthusiastic about their assignments, they tend to perform it with a higher degree of accuracy and efficiency.

The passion demonstrated by employees should permeate into every aspect of your company’s appeal.

They should exude passion for the customers, the company, their fellow team members, the goals of the organisation and, ultimately, the bottom line.

Perhaps most employees begin their employment on a high note, passionately pursuing a good name for themselves. The question, then, is what happens in the decades, years, months, weeks or days after contract signing that causes many employees’ love for job and work to wane? Why are there such blatant cases of lacklustre performance existing in both the private and public sector?

Some argue that jobs are like relationships, beginning with a super honeymoon and continuing in series of hills and valleys.

When leaders and companies fail to add the fire to the ‘lit’ employee at the onset, they become overwhelmed, exhausted, bored, unappreciated, and can ultimately invite turnover into their business, which we all know is quite expensive.

Here is a brief list of what employers can do to ensure that employees remain motivated:

cgigrp

2. Passion breeds passion. Allow the passionate employees to lead teams and serve in key roles to spread the joy.

3. Do not make a habit of hiding information from anyone. The

Ian ferguson greater the levels of transparency, the higher the trust in the company and love for it.

4. Create a culture of engagement among employees. E-mails and memos must never take the place of face to face meetings when they are possible. People can sometimes get lost in the silence of technology.

5. Celebrate successes together. Birthdays, engagements, weddings, work anniversaries are a reason to whip out the cider and cake.

6. Reward and recognise fairly - and regularly - employees who deliver to the company’s standards.

7. Ask your employees for feedback, and make the changes necessary to ensure they are happy.

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

THE TRIBUNE

Friday, December 23, 2016, PAGE 3

Bahamas poised for ‘banner year’ in sports tourism

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas is poised for a “banner year” in sports tourism in 2017, the Minister of Youth, Sports and Culture said yesterday, telling this newspaper: “We’ve never seen anything like this in our history.”

Speaking with Tribune Business ahead of the third annual Popeyes Bahamas Bowl, set for today at the Thomas A Robinson Stadium, Dr Daniel Johnson said this nation has “10 years’ worth of business lined up”.

“We have never seen anything like this in our history. We are positioned to really become the number one signature destination for sports tourism,” said Dr Johnson.

“We have completed the first phase of our rebranding of Sports in Paradise, trying to make the Bahamas the number one sports tourism destination in the region, but also number one in the world at hosting the small, boutique signature events. We are going to be the best at that.

“We will show it with the IAAF World Relays, we will show it with the Popeyes Bowl, the Tiger Woods event, then next year we will show it with the World Cup Beach Soccer FIFA signature event and the Commonwealth Youth Games.”

He added: “We have so much to come; track and field, boxing, judo, Carifta and the swimming championships. We’re working on three stadiums at the same time. We have the national baseball stadium coming, the beach soccer and beach volleyball stadiums coming, and the Moore’s Island National Sports Academy coming. Next Spring all those will be ready.”

Dr Johnson said that while the Bahamas attracts major sporting events and activities, it must also match

Minister: ‘We’ve never seen anything like this’

Dr Daniel Johnson this with increased hotel room inventory, infrastructure, better service and more cultural offerings.

“The next phase of what I am going to do is focused on Bahamian ownership. Next year I’m going to be pushing for young Bahamian owners to own professional sporting franchises that are going to come and be home in our national stadium,” he added.

“We’re looking for professional beach soccer franchises owned by young bahamian groups. We’re looking for professional beach volleyball branches owned by young Bahamian groups, AAA Basketball and baseball owned by Bahamian groups.

“After the Popeyes Bowl the guys will be here to begin talks for the first United Soccer League (USL) franchise outside of the United States ever in the Bahamas.”

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Labour director: Jobless data is ‘true reflection’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Director of Labour yesterday defended the Department of Statistics’ recent Labour Force Survey as a “true reflection”of the economy’s employment conditions at the time it was conducted.

Opposition politicians have queued up to argue that the 1.1 percentage point decline in the jobless rate to 11.6 per cent was a temporary, “false indicator” of the Bahamian workforce’s position.

But Robert Farquharson told Tribune Business: “We have to understand what the survey is. The survey is a snapshot of what the employment situation is at a particular date and time.

“When the Department did the survey right after the hurricane, it showed a significant increase in employment, particularly in the construction industry. That increase continues today.

“You still have a significant amount of persons who continue to be employed in the sector, who were employed primarily as a result of the damages caused by the hurricane. Based on reports, that probably will be another six to 12 months.

In my opinion, it is a true reflection of the economy and the labour issue in the economy.”

According to the Department of Statistics, the unemployment rate declined from 12.7 per cent in May due

Jamal Roache

is asked to contact

Kimberly Williamson at Telephone: 1772-214-2478 URGENTLY

to a 4,025 increase in employed persons and a 2,155 decrease in unemployed persons.

The survey, which was conducted between October 26-30, captured 3,500 homes across the Bahamas, inclusive the islands of Bimini and Exuma, which were not in the last survey.

These islands, according to the Department of Statistics, have an unemployment rate of 4 per cent and 8 per cent, respectively.

The data also showed that 1,385 persons were employed in the construction sector as a direct result of Hurricane Matthew. The

Department of Statistics noted that prior to the hurricane, only 14 per cent of households need repairs, but that jumped to 51 per cent after the storm.

Mr Farquharson told Tribune Business: “The next survey is anticipated to be in the month of April. Certainly. during that time you may see data reflecting the persons laid off at the casino in Grand Bahama, the Ocean Club, Renew Bahamas.

“Come January, it is also anticipated that Baha Mar will employ some 1,500 persons. The snap shot in April will reflect all those things.”

Robert Farquharson

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Callenders & Co. takes pleasure in having served you during the past year. Please accept our regrets as we will be closed between FRIDAY, 23RD DECEMBER, 2016 AT 3PM and MONDAY, 2ND JANUARY, 2017 Regular Office Hours will resume on TUESDAY, 3RD JANUARY, 2017 WE WISH YOU A VERY MERRY CHRISTMAS AND A HEALTHY & PROSPEROUS NEW YEAR.

PAGE 4, Friday, December 23, 2016

Rate cut can’t be ‘knee jerk’ S&P reaction From pg B1 could be reassured there was “rhyme and reason” to its action.

The Central Bank said the 0.5 percentage point cut to its Discount Rate, which is the rate at which it lends to the private commercial banks, was designed to spark more private sector/ business investment ahead of Baha Mar’s opening.

Seeking to stimulate key industries that have long been depressed, and contributed heavily to negative per capita GDP growth over the past decade, the Central Bank said the Discount Rate’s lowering to 4 per cent was also intended to jumpstart the domestic housing market.

“This policy action is intended to position the domestic business sector to take more advantage of growth opportunities in the near to medium term, and to provide more support to housing sector investments,” the Central Bank said in a statement yesterday.

It effectively ordered the Bahamian commercial banks to “follow suit” by reducing the Prime rate, the rate at which they lend to each other, by the same magnitude - from 4.75 per cent to 4.25 per cent.

And, in turn, the Central Bank added that its licensees should also pass the reduced capital costs on to both new loans and existing borrowers whose facilities carry variable rates.

The interest rate cut, the first since June 2011 and for four-and-a-half years, occurred just 48 hours after Standard & Poor’s (S&P) cut the Bahamas’ sovereign creditworthiness to ‘junk’ status, costing this nation its ‘investment grade’ rating.

While the interest rate cut will be a welcome Christmas present for many Bahamians, given that there are just two shopping days left before the holidays, many are questioning both the Central Bank’s timing and rationale (see other article on Page 1B).

While himself suggest-

ing that yesterday’s interest rate cut had “been in the works for some time”, Mr Bowe said it was vital that the Central Bank publish all its analyses and deliberations to show that it was not merely a response to the S&P downgrade.

“Hopefully, while there is relief in the actual reduction of the rate, there is rhyme and reason to the cut,” the Chamber chairman told Tribune Business.

He emphasised that it had to be for “the benefit of the whole economy”, increasing GDP growth, employment, business activity and spending, and not just to reduce the Government’s debt servicing costs.

“Hopefully we will see all the considerations and deliberations on why this was taken, so that it is not seen as a knee jerk reaction to other events taking place,” Mr Bowe said of the rate cut.

“It was very quickly released, so it had to have been in the works for some time at the Central Bank.

This is a counter balance to news of the increase in external debt costs.”

Mr Bowe acknowledged that among the biggest beneficiaries from the Central Bank’s move will be the Government, which will see debt servicing (interest) costs associated with its near-$5 billion domestic debt pile reduced.

Virtually all the interest coupons on its Bahamas Government Registered Stock (BGRS) and Treasury Bill issues are linked to the Prime rate and, while the Central Bank’s action will not impact current issues, it will benefit future ones. Since the Government’s debt issues are being rolled-over and replaced frequently, the impact will not take long to be felt.

“Given that the Government of the Bahamas funds its debt through the local market, so this has immediate, positive effects for their debt servicing,” Mr Bowe told Tribune Business.

Many observers, speaking privately to Tribune Business yesterday, sug-

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Notice is hereby given that the dissolution of HOLY DIAMOND L.P. has been completed as of the 20th day of December, 2016.

Dartmouth Ltd., its Liquidator 303 Shirley Street P.O. Box N-492 Nassau, Bahamas

Gowon Bowe gested that the benefits to the Government from reduced interest (debt servicing costs) were the main motivation for the Central Bank’s action.

Based on the latter’s data, the Government currently has around $4.281 billion in outstanding BGRS issues, and $856 million in Treasury Bills, accounting for almost $5 billion of the $6.78 billion national debt at endSeptember 2016.

A reduction in the Government’s domestic debt servicing costs will also help to counter, or offset, the higher borrowing costs it will now face on the international capital markets following the S&P downgrade.

The Bahamas will be perceived as a more risky investment, and investors will require a higher interest rate in compensation. And the pool of available investors has also shrunk, given that some institutions can only invest in ‘investment grade’ rated securities.

The Central Bank was silent on this benefit yesterday, suggesting that the analysis behind the interest rate cut was driven by “the prospects for a pick-up in growth in the coming year, resulting mainly from the expansion in the tourism plant”.

That means Baha Mar and other new properties, such as the Warwick on Paradise Island, with the Central Bank saying the increased tourism earnings inflows will further boost external reserve levels that are already benefiting from a lower oil import bill.

Essentially, the Central Bank’s rationale is that the interest rate cut will help to improve private sector and consumer confidence, and stimulate investment in

job-creating expansion projects by Bahamian-owned businesses, cutting capital costs as they prepare to take advantage of foreign direct investment (FDI) opportunities.

“We know that for a long period of time there’s been a clamour that the interest rate environment in the Bahamas has overly high, while other economies have lowered interest rates,” Mr Bowe said.

“There’s certainly been a chorus line for people needing capital funding for interest rates to be lower.... This should spur some additional spending of capital expenditure, and give the average consumer relief in debt servicing costs given the highly leveraged citizenry.”

Yet some observers questioned whether the Central Bank’s rate slash will have any impact, given the commercial banking sector’s reluctance to lend, as measured by its $1.2 billion in surplus liquid assets.

Mr Bowe acknowledged that reduced borrowing costs did not translate into improved access to capital, explaining: “It speaks to your creditworthiness and viability as a business.

“Access to funding will not necessarily change, but the cost of those funds is going to drastically change.”

John Rolle, the Central Bank’s governor, yesterday said the debt service ratio and equity down payment requirements set by the regulator would prevent “an unsustainable credit expansion” among Bahamian consumers.

“We do not foresee unsustainable credit expansion as a result of this,” he told Tribune Business.

“Debt service ratios and borrower equity requirements also significantly dictate creditworthiness.

Earnings prospects will govern those. We see those earnings prospects beginning to change for the same reason as the fundamentals that will boost tourism output potential.”

The Central Bank yesterday touted the 40-45 per cent ‘maximum debt servicing ratio’, and 15 per cent minimum down payment requirement, as safeguards that would ensure “sustainable credit trends” follow-

ing the interest rate cut, “Lending policies should also continue to be conservative, as commercial banks manage the expected gradual reduction in the overhang of non-performing loans,” it added.

However, the Central Bank’s action does creates ‘winners and losers’.

It effectively represents a ‘wealth transfer’ from savers to borrowers, with the former seeing a reduction on bank deposit yields and other investment returns, while the latter benefit from reduced debt servicing costs.

Major institutional investors, such as commercial banks, insurance companies, pension funds and the National Insurance Board (NIB), which are the biggest purchasers of government bonds due to their ‘low risk’ rating and liquidity, will see an immediate reduction in their returns.

With commercial banking system deposit rates already at around 1 per cent, these will now slip even lower, forcing depositors to seek higher-yielding returns and investments elsewhere.

This, in turn will make Bahamian capital market investment securities, such as preference shares, bonds and equities, more attractive. Among the companies likely to benefit are Aliv, the new mobile operator, and its majority shareholder, Hold-

THE TRIBUNE ingCo, both of whom have capital raisings planned for the New Year.

“Good news for borrowers; bad news for savers,” was how K P Turnquest, the FNM’s finance spokesman and deputy leader, described the Central Bank rate move.

“This will hopefully make capital more affordable to finance some projects, spur some entrepreneurial activity and give impetus to some businesses to spend.

“It will hopefully offset what has been an increase in external interest rates. It is a counter-measure, and will help to balance the increase with future external borrowings.”

He added that the Central Bank’s action had effectively created an “inverse relationship” between the Government’s domestic bonds and interest rates, as a downgrade would normally prompt an increase in the latter.

“The real question is whether it is far too late for this kind of move,” Mr Turnquest told Tribune Business.

“This is an idea that has been floated for a little while; look at the Prime rate, and make capital more affordable and the economy more competitive. Hopefully, we haven’t acted after the horse has bolted by.”

THE TRIBUNE

Friday, December 23, 2016, PAGE 5

Governor: Rate cut ‘not influenced’ by S&P’s junk action From pg B1

downgrade that occurred just 48 hours before.

Loretta Butler-Turner, the Opposition’s House of Assembly leader, questioned whether the Central Bank had succumbed to Government pressure and, in so doing, compromised the autonomy and independence it is supposed to enjoy.

“I’ve never seen them react so rapidly other than like this,” Mrs Butler-Turner told Tribune Business.

“It’s their job to be very cognisant of what the fallout could be [from S&P], but the fact they’ve responded so quickly is something we have to question; whether it was done independent of the executive.”

Her suspicions were increased after Bahamas Information Services’ (BIS) deputy director, Elcott Coleby, distributed the Central Bank’s statement to the media, albeit 45 min-

utes after it appeared on the latter’s website.

“I can’t say it confirms it,” Mrs Butler-Turner said of Mr Coleby’s actions, “but we have to ask the question: Has the Central Bank acceded to the pressures of the executive [the Government] on this.

“I’m just wondering what has caused them to react so quickly.... The only question I would raise at this point, certainly, is have they acted autonomously?

“The fact BIS is involved in what they’ve done, it appears for all intents and purposes that pressure was put upon the Governor and his team of professionals.

That’s what it appears to me; that’s what I take away from it.”

Both Mrs Butler-Turner and the FNM’s finance spokesman, K P Turnquest, conceded that the Central Bank’s interest rate cut could benefit the economy and Bahamian people by lowering borrowing and

debt servicing costs.

Instead, they are questioning whether the Central Bank has acted for the right reasons, given the impact of S&P’s ‘junk’ downgrade and resulting fall-out from the country’s loss of sovereign ‘investment grade’ status.

“Is it a prudent thing to do? In some respects, it is,” Mrs Butler-Turner said of the Central Bank’s action.

Mr Turnquest, meanwhile, described the 50 basis point Discount Rate reduction as “a positive step and reaction to the downgrade” by S&P. “There’s no doubt about it; I think we’d be safe to say it is a reaction to that,” he added, “and to take the spotlight off the negative by promoting the positive, and changing the narrative.

“I’m not going to criticise them for that because at this point it is an appropriate response. I think it is a positive thing for businesses, as well as consumers.

“The only risk in this as

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I see it, the downside, is to depositors, bondholders and savers. Hopefully, it doesn’t spur an increase in consumer lending and borrowing.”

The Opposition politicians’ assessments on the timing were also backed by a financial analyst, speaking to Tribune Business on condition of anonymity, who questioned why the Central Bank had waited until now - two days after S&P’s move, and with two shopping days left before Christmas - to act.

The Central Bank, explaining its rationale for the interest rate cut, said it was designed to enable Bahamian businesses “to take more advantage of growth opportunities in the near to medium term”, likely meaning the projected spin-offs from Baha Mar’s opening and other major resort projects coming on line.

The regulator added that its action was also intended “to provide more

support to housing sector investments”, meaning that it hopes the reduction in mortgage costs will spur the domestic housing market.

The analyst, though, said the private sector would have derived maximum benefits from an interest rate reduction in either summer or September/October 2016, when retailers were purchasing Christmas inventory.

This is the first Central Bank rate cut in five-anda-half years, the last having occurred in June 2011 when the former Ingraham administration was in office.

The analyst pointed out that there had been a consistent clamour from the private sector, ever since then, for the Central Bank to further reduce interest rates/capital costs, and provide monetary stimulus to the economy, yet it had failed to act until now.

Suggesting that the rate cut’s timing “makes no

sense”, the analyst told Tribune Business: “The fact of the matter is that this is something they [the Central Bank] should have done a long time ago.

“There were calls four to five years ago to do this, and to do it now when there’s this external pressure.”

They added that the Central Bank had stubbornly resisted calls to follow the US and other major economies in reducing interest rates to record lows, something that the Bahamian private sector felt was contributing to this country’s increasing lack of competitiveness.

“If they wanted to jump start the business community, they could have done it in June/July, or September/October, and allowed them to buy inventory cheaper when they stockpile for Christmas,” the analyst said. “This doesn’t make a lot of sense to me.”

PAGE 6, Friday, December 23, 2016

Golden Happiness Tobacco Trading Company Ltd.

Company No. 581294 (In Voluntary Liquidation)

NOTICE is hereby given pursuant to Section 204 (1)(b) of the BVI Business Companies Act, 2004 that Golden Happiness Tobacco Trading Company Ltd. is in voluntary liquidation. The voluntary liquidation commenced on 15th December, 2016 and DR. PETER MARXER JUN. of Kirchstrasse 1, Postfach 777, 9490 Vaduz, Principality of Liechtenstein has been appointed as the Sole Liquidator.

Dated this 16th day of December, 2016 Sgd. DR. PETER MARXER JUN. Voluntary Liquidator

NOTICE WHOMPY Advisory Ltd. In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, WHOMPY Advisory Ltd. is in dissolution as of December 21st, 2016.

Lighthouse Corporate Services Ltd., situated at Offices at Old Fort, Building 4, Suite 303, Lyford Cay, Nassau, Bahamas is the Liquidator.

LIQUIDATOR ______________________

THE TRIBUNE

NOTICE TUNDRA VALLEY INC. In Voluntary Liquidation

NOTICE FORTE LOWELLES INC. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, TUNDRA VALLEY INC. is in dissolution as of December 22, 2016

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, FORTE LOWELLES INC. is in dissolution as of December 22, 2016

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

NOTICE

NOTICE OILFIELDS VALLEY INC. In Voluntary Liquidation

KMR INVESTMENTS LTD. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, KMR INVESTMENTS LTD. is in dissolution as of December 21, 2016 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, OILFIELDS VALLEY INC. is in dissolution as of December 22, 2016 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

NOTICE

NOTICE

NOTICE

In Voluntary Liquidation

Living and Nature Foundation

Greenlife Universal Foundation

Notice is hereby given that in accordance with Section 52 (2) (b) of the Foundation Act. 2004, Living and Nature Foundation is in dissolution as of December 21st, 2016.

Notice is hereby given that in accordance with Section 52 (2) (b) of the Foundation Act. 2004, Greenlife Universal Foundation is in dissolution as of December 21st, 2016.

Living and Nature Marketing Corp.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Living and Nature Marketing Corp. is in dissolution as of December 21, 2016

In Voluntary Liquidation

CANDEO OVERSEAS SA of the British Virgin Islands is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

NOTICE

NOTICE

Oro Valley Foundation

Greenlife Capital Corp.

In Voluntary Liquidation

In Voluntary Liquidation

Notice is hereby given that in accordance with Section 52 (2) (b) of the Foundation Act. 2004, Oro Valley Foundation is in dissolution as of December 21st, 2016.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Greenlife Capital Corp. is in dissolution as of December 21, 2016 CANDEO OVERSEAS SA of the British Virgin Islands is the Liquidator.

In Voluntary Liquidation

LIQUIDATOR ______________________ NOTICE

Oro International Valley Corp In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, Oro International Valley Corp is in dissolution as of December 21, 2016 CANDEO OVERSEAS SA of the British Virgin Islands is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR ______________________

LIQUIDATOR ______________________

NOTICE TOP GLOBAL VALLEY LTD. In Voluntary Liquidation

NOTICE ESAPI LIMITED In Voluntary Liquidation

NOTICE GONDA ENTERPRISES S.A. In Voluntary Liquidation

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, TOP GLOBAL VALLEY LTD. is in dissolution as of December 21st, 2016.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, ESAPI LIMITED is in dissolution as of December 21st, 2016.

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, GONDA ENTERPRISES S.A.is in dissolution as of December 21st, 2016.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

LIQUIDATOR _______________________

International Liquidator Services Inc. situated at 3rd Floor Withfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

THE TRIBUNE

Friday, December 23, 2016, PAGE 7

NIB creates new fears of ‘fiscal crisis’ From pg B1 to fiscal sustainability and debt,” the IDB warned.

“The NIB pension, which remains unfunded, represents approximately 50 per cent of GDP. “With the $1.7 billion reserve fund being exhausted in 2029, this could trigger a fiscal crisis and large increases in national debt, beyond the already high levels.”

The IDB’s concerns are drawn from a recent International Monetary Fund (IMF) report on NIB and other Caribbean social security schemes, which called on the Bahamas to increase total contribution rates by 50 per cent in percentage terms to help cover the funding gap.

“The corrective actions recommended by the IMF include raising the retirement age to 67, freezing benefits for a two-year period, and increasing contributions to 16.2 per cent from 10.8 per cent,” the IMF said.

“The likelihood of this happening within the near term following Hurricane Matthew and already weak domestic consumption

from troubling double-digit unemployment appears remote, and therefore presents a downside risk to the economy.”

Shane Gibson, minister of labour and national insurance, in a previous Tribune Business interview acknowledged the weaknesses identified by the IMF and IDB, but added that it was a question of “when” the Government “pulled the trigger” on reform.

Elsewhere, the IDB said the Bahamas “faces a modest growth outlook”, estimating like Standard & Poor’s (S&P) that GDP growth for 2016 will be just 0.3 per cent - a level below rival Caribbean economies and other small island developing states (SIDS).

Acknowledging that this would be an improvement on the 1.7 per cent economic contraction endured by the Bahamas in 2015, the IDB added: “Growth improved mainly because of increased tourist arrivals of 1.7 per cent.

“The Government’s strategy has been to promote growth through the provision of incentives, airlift subsidies, and tax conces-

PUBLIC NOTICE

INTENT TO CHANGE NAME BY DEED POLL The Public is hereby advised that I, WELKIN ALLIT of John Chipman Street, off East Street, New Providence, Bahamas intend to change my name to WELKIN ALY. 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.

NOTICE MIDDLEMOUNT HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows: (a) MIDDLEMOUNT HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4) of the International Business Companies Act 2000. (b) The dissolution of the said company commenced on the 7th December, 2016 when the Articles of Dissolution were submitted to and registered by the Registrar General. (c) The Liquidator of the said company is Bukit Merah Limited, The Bahamas Financial Centre, Shirley & Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 23rd day of December, A. D. 2016 _________________________________ Bukit Merah Limited Liquidator

sions to encourage large, private tourism-related capital projects, and to enable a faster recovery over the medium term.

“Tourist arrivals are increasing and stabilising the real sector contribution, but risks persist. Air arrivals expanded steadily by 2.7 per cent to June 2016. However, the largest category, sea landings, contributed 1.5 per cent, resulting in growth of 1.7 per cent in total arrivals.”

The IDB added that the Government’s fiscal consolidation plan for 2016-2017, estimating that its projected primary surplus of 0.4 per cent of GDP was likely to become a 0.7 per cent deficit - a negative swing of 1.1 per cent of GDP, or more than $80 million.

“The Bahamas’ fiscal position will be affected by Hurricane Matthew in 2017.

The primary balance for 2016-2017 is estimated to be 0.4 per cent of GDP, an improvement from a deficit of -0.2 per cent in the previous fiscal year,” the IDB said.

“However, with the impact of Hurricane Matthew, the Government is expected to finance recuperation

costs of essential public services and infrastructure.

“As a result, the primary balance could worsen to about -0.7 per cent of GDP in the current fiscal year and 0.4 percent in the next fiscal year relative to the pre-hurricane shock forecasts.”

The primary balance measures the difference between the Government’s revenues and its recurrent expenditure, with debt servicing (interest) payments on its debt deducted from the latter.

Still, the IDB said that despite Matthew’s impact, the Government’s primary balance had still improved from the 1.7 per cent deficit incurred in the 2013-2014 fiscal year.

“The current mediumterm fiscal programme

to advertise today in the tribune call @ 502-2394

(MTFP) will aid consolidation, and with the widening of the recovery, there is hope that fiscal balances will gradually improve in the medium term, and assist in a gradual decline in the overall central government and publicly guaranteed debt, which currently stands at 74 per cent of GDP,” it added.

“Debt remains high, and above the targeted level within the MTFP. Weak economic performance has impacted the fiscal outcome.”

The IDB said lower international oil prices had helped to improve the Bahamas’ current account deficit and balance of payments position.

“Coming from 22 per cent of GDP in 2014, the current account deficit declined to approximately 11 per cent,” it added. “Lower global oil prices and the reduction in construction imports from the stalled Baha Mar project have improved the external position.

“Investment in energy reforms, within an environment of persistent low oil prices, will be credit positive for the economy, as the current deficit is financed by inflows from private and real estate investment, which could pose downside risks if there is any change in confidence.”

NOTICE

NOTICE is hereby given that APPOLONIA NGOBIDI of 3rd Terrace, Centerville, P.O.Box N1179, 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 23rd day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

PAGE 8, Friday, December 23, 2016

Popeyes Governor: S&P move targets 60 jobs no devaluation threat at third store From pg B1 from 74.6 per cent the year

From pg B1

a Credit Bureau would en“We expected this to do able the commercial banks well, and there to be a little to engage in more “prudent bit of cannibalisation,” he lending practices over the explained. medium-term”, while the “That’s usually what hap- 16 per cent of Central Bank pens, but eventually the oth- licensees who had lost corer store’s sales will increase respondent banking relaagain. It has exceeded our tionships had been able to expectations given the pre- either find replacements or liminary numbers that we rely on other, existing netare seeing. We literally just works. opened on Wednesday with The Central Bank, meanpractically no advertising, while, acknowledged that apart from social media.” the Bahamas’ national debt Terry Tsavoussis con- grew by $262.5 million over tinued: “We plan to open the 12 months to end-Sepstore number three in 2017. tember 2016, closing the That will employ probably third quarter at $6.777 bil60 persons because it will lion.

As a result, the total nabe a different concept, in as much as it will have a tional debt-to-GDP ratio Y-lane, walk-up windows stood at 75.8 per cent at and double drive-through - end-September 2016, up very similar to the Wendy’s on Carmichael Road - because we are limited with the property on Robinson Road.

“We have already cleared NEW YORK (AP) — the land, but we were just Retailers took losses Thurswaiting to finish the second day and pulled U.S. stocks outlet before we got moving lower in another day of mild on the third one. We’re tar- trading before the holidays. geting the second quarter of Bed Bath & Beyond was next year for that one to be pummeled after the home open.” goods retailer reported

before and well above the IMF’s 70 per cent danger threshold, which was struck at the same point in 2014.

The ‘direct charge’ on government is now equal to 67.6 per cent of GDP, while total public debt (Government’s direct charge, plus guaranteed and non-guaranteed debt) has jumped from 83.9 per cent to 85.3 per cent year-over-year.

“The Government’s overall deficit deteriorated during the first quarter of fiscal year 2016-2017, as broadbased expenditure gains outstripped the growth in total revenue,” the Central Bank’s third quarter review, released yesterday, said.

“Reflecting broad-based gains in expenditure by

7.2 per cent to $536.4 million, which negated the 2.9 per cent rise in revenue to $450.4 million, the estimated fiscal deficit deteriorated by $23 million (36.6 per cent) to $86 million during the first quarter of 20162017, relative to the comparable period of 2015-2016.

“Funding for the deficit was derived predominately from domestic sources and included a combination of long and short-term debt, while additional debt creating financing was also extended to two private entities.”

Those two entities are the new mobile operator, Aliv, in which the Government reinvested the $62.5 million spectrum fee received from its controlling shareholder, Cable Bahamas, to fund the majority investor, HoldingCo’s, share of the start-up costs.

Another $40 million was used for the Bank of the

Bahamas rights issue, with the Central Bank revealing that both transactions impacted the Government’s “net overdraft balances”.

“The Government utilised approximately $40 million in deposits to invest in a rights issue from BOB, and redirected $62.5 million in auction proceeds secured from the cellular liberalisation process,” the Central Bank said.

Looking to the future, its November economic developments report, also released yesterday, said: “Expectations are that the fiscal position will continue to be adversely affected by the effects of the post-hurricane spending on repairs to Government infrastructure and social assistance programmes, along with lower tax revenues resulting from the implementation of a series of measures to support private sector recovery efforts.

THE TRIBUNE “Expectations are that domestic economic conditions will remain mildly positive for the remainder of the year, with the potential for further strengthening in 2017 following the expected phased opening of the multi-billion dollar Baha Mar resort in the second quarter of the year.

“As a consequence, continued improvements in labour market conditions are anticipated. Inflationary pressures are poised to remain well contained.

While the recent uptrend in global oil prices is likely to lead to higher energy costs over the near-term, the Bahamas should continue to benefit from the cumulative reduction in prices still sustained relative to averages recorded in the first half of this decade. Accordingly, the oil import bill should remain comparatively lower over the medium-term.”

Stocks slide again as retailers and tech companies slip weak results, and investors also dumped companies like Target, Staples and Dollar Tree. Chinese e-commerce company Alibaba fell after it was sanctioned by the U.S. government, while companies

linked to investor Carl Icahn climbed after the billionaire was named as a future adviser to Presidentelect Donald Trump.

Quincy Krosby, a markets strategist for Prudential Financial, said investors were concerned about the weak earnings for Bed Bath & Beyond and about the jump in interest rates since the election.

“When you have interest rates rising, at least initially, it tends to take a little bit from the discretionary (companies) because credit card payments move higher,” she said.

The Dow Jones industrial average shed 23.08 points, or 0.1 percent, to 19,918.88.

The Standard & Poor’s 500 index lost 4.22 points, or 0.2 percent, to 2,260.96. The Nasdaq composite dipped 24.01 points, or 0.4 percent, to 5,447.42. The Russell 2000 index of small-company stocks sank 12.53 points, or 0.9 percent, to 1,362.66.

With the year-end holidays approaching, trading remained light.

A second day of losses pulled the Dow further from the 20,000 mark.

It first reached 19,000 a month ago.

After it reported a far smaller profit and weaker sales than analysts expected, Bed Bath & Beyond dropped $4.18, or 9.2 percent, to $41.38. That wiped

NOTICE

NOTICE is hereby given that MARIEANGE PIERRE of Eden Street, 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 23rd day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that ROSE MARIE BUNBURY of #8 Exuma Avenue, Yamacraw Beach Estates, P.O Box EE-16285, Nassau, 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 16th day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

NOTICE

NOTICE is hereby given that NormaN malcolm oliver buNbury of #8 Exuma Avenue, Yamacraw Beach Estates,P.O Box EE-16285, Nassau, 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 16th day of December, 2016 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.

Employment Opportunity

Corporate Administrator Job Requirements: • Excellent knowledge of incorporation, liquidations and continuations of international business companies; • Must have a sound understanding of Bahamian laws in relation to IBCs, investment funds and foundations; • Experience in corporate and fund administration; • Responsible for liaison with government regulatory bodies including the Companies Registry and Securities Commission of the Bahamas; Qualifications: • High School Diploma; • 3 years experience in corporate services; • Competent in Microsoft Office Suite Interested persons can apply by sending your resume to: jobsworld242@gmail.com

out most of the gains the company has made during the post-election rally. The SPDR S&P 500 retail ETF lost 3.5 percent.

Alibaba fell after the U.S. government put the Chinese e-commerce company back on a list of marketplaces that sell large amounts of counterfeit goods and is slow to respond when companies complain about knockoffs. Chinese regulators have made similar criticisms. Alibaba’s U.S.-listed stock lost $2.45, or 2.7 percent, to $86.80.

Several companies linked to Carl Icahn surged after the billionaire investor was named as an adviser to Trump on regulatory reform issues. Icahn says he wants to cut business regulations. He is close to Trump and advised him during the presidential campaign, and that’s given some of his companies a large boost.

Icahn Enterprises rose $4.38, or 7.6 percent, to $62.30 and refining company CVR Energy added $2.25, or 10.5 percent, to $23.69. Icahn owns 82 percent of the voting power in CVR Energy. Icahn Enterprises has climbed 30 percent since the presidential election, and CVR Energy has climbed 85 percent.

Open-source software company Red Hat sank after it reported disappointing revenue in the third quarter. Its fourth-quarter sales projections were also lower than analysts expected. Red Hat lost $11.08, or 13.9 percent, to $68.71, its biggest one-day loss in 10 years. Other technology companies like Facebook and Yahoo also fell.

Teva Pharmaceutical Industries, the world’s largest generic drug maker, rose after it agreed to settle an investigation into possible bribes paid to foreign governments. The Israeli company will pay $519 million and its Russian business will plead guilty to criminal charges. The inquiry also involved Teva’s businesses in Ukraine and Mexico.

Teva said it replaced the leadership of its Russian division after the investigation began.

The stock added 54 cents, or 1.5 percent, to $36.91.

Teva said in October that it was setting aside $520 million for a possible settlement, and investors are often pleased when companies settle investigations because the deals remove uncertainty and help the companies put their problems behind them.

Chocolate maker Hershey rose after it named Michele Buck as its next president and CEO. She is currently Hershey’s chief operating officer. Hershey stock added $1.27, or 1.2 percent, to $104.44.

Benchmark U.S. crude gained 46 cents to $52.95 a barrel in New York and Brent crude, the international standard, rose 59 cents, or 1.1 percent, to $55.05 a barrel in London.

That sent energy companies higher.

In other energy trading, wholesale gasoline remained at $1.60 a gallon.

Heating oil added 2 cents to $1.66 a gallon. Natural gas stayed at $3.54 per 1,000 cubic feet.

Bond prices fell. The yield on the 10-year Treasury note climbed to 2.55 percent from 2.54 percent.