12302016 business

FRIDAY, DECEMBER 30, 2016

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Govt and Central Bank in rate cut ‘panic attack’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Branville McCartney

The Government and Central Bank were yesterday accused of suffering “a panic attack” over the Bahamas’ ‘junk’ downgrade by the Opposition’s Senate leader, who branded the interest rate cut as “too little, too late”.

Branville McCartney told Tribune Business that the Central Bank should have cut borrowing costs deeper and earlier, arguing that the timing of the 50

Govt urged: ‘Get a handle’ on Airbnb market’s explosion

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A prominent realtor yesterday urged the Government to better regulate the growing Airbnb online tourist rental market to prevent the loss of tax revenues, while also ensuring Bahamians better access entrepreneurial opportunities.

Mario Carey, president and chief executive at Better Homes & Gardens MCR Bahamas, told Tribune Business that the local Airbnb market should be regulated “in a favourable way”.

He explained: “Airbnb is going to shift the tourist experience in the Bahamas; in fact, it’s already doing it.

Many people are not into the hotel experience any more. A lot of people want to experience the islands; they want to stay in a house and have a cultural experience, and not have to pay for every single meal.

“The Airbnb model is very good for our business, and I think that the Government needs to get a handle on that because they are missing a lot of revenue. They know that hotel revenue is down because the owners of Airbnb aren’t paying room tax, and there is no reason why they should not be able to collect that.

“There has to be a system whereby those persons renting out their homes are paying room tax to the Government,” Mr Carey

Realtor warns losing out on ‘a lot of revenue’ Says ‘going to shift the tourist experience’ Calls for any regulation to be ‘favourable’

Mario Carey, president and CEO of Mario Carey Realty emphasised.

“The Airbnb business in Harbour Island is explosive.

It has always been. There needs to be an understanding of the market, and incentives set to balance the investor’s ability to buy and See pg b6

US regulator threatens top Bimini developer with $219k sanction

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net Bimini’s largest employer last night expressed “disappointment” that US regulators are threatening to fine it $219,000 for conducting unauthorised air carrier operations.

The Federal Aviation Administration (FAA) is threatening to sanction Resorts World Bimini and an affiliate company over nine “for-hire” flights that brought casino players and other guests to its property in summer 2015.

The flights, which were all between Miami and Bimini, did not possess the necessary FAA permits and approvals to carry “forhire” passengers, the US regulator said in a statement.

Resorts World Bimini and Resorts World Aviation had also not been authorised to operate an air carrier, the FAA alleged, while the pilots involved lacked the necessary training and certifications.

Resorts World ‘disappointed’ in FAA action Seeking meeting with regulator to ‘resolve’ issue Relates to claimed ‘unauthorised’ flights in 2015 “The US Department of Transportation’s Federal Aviation Administration (FAA) proposes a $218,700 civil penalty against Resorts World Aviation and Resorts World Bimini for allegedly flying passengers without an FAA air carrier certificate, or with pilots who had not been trained and checked for commercial operations,” the FAA’s statement said.

“The FAA alleges that Resorts World Aviation provided Resorts World Bimini casino players and See pg b4

basis point cut – just 48 hours after Standard & Poor’s (S&P) move – left little doubt it was designed to counter the downgrade.

The Democratic National Alliance’s (DNA) leader then slammed Prime Minister Perry Christie for “talking foolishness” in attempting to blame the ‘junk’ downgrade on the “acts of God” that were Hurricanes Joaquin and Matthew.

While both storms, especially Matthew, disrupted the Government’s fiscal planning, reducing See pg b4

Bran: 50 basis point drop ‘too little, too late’ PM ‘talking fool’ in blaming storm on ‘acts of God’ FNM, PLP ‘two sides of coin that got us into mess’

Residency change ‘great plan to stop investors coming’

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

Bahamian realtors have branded the Government’s proposal to increase the ‘fast track’ residency threshold to $1 million as “a great plan if we want to stop people and investment coming here”.

Peter Dupuch, ERA Dupuch Real Estate’s president, told Tribune Business that the planned doubling of the real estate investment benchmark for accelerated permanent residency consideration was “surely not a way” to attract business and economic activity.

A Government spokesman (see other article on Page 1B) has revealed that it plans to implement the increase from $500,000 to $1 million on March 1, 2017, despite warnings from realtors and developers that the policy change could cost the Bahamas an entire segment of its real estate market that is especially vibrant.

“If they want to stop people coming here, that’s a great plan,” Mr Dupuch told Tribune Business. “It’s surely not a way to attract people.

“It didn’t happen to us, but I heard a story of someone buying to get that [permanent residency], spending $600,000 to $700,000, and

Realtor: Govt trying to ‘stifle’ business at every turn Says narrowed VAT filing period ‘makes no sense’ Govt urged: Take care on ‘cream of crop’ strategy they’ve backed out now.

“They were doing it for residency, and now they’re putting it [the threshold] to $1 million, they can’t afford that. That’s already tens of thousands of dollars lost to the Treasury.”

Mr Dupuch said many Bahamians, especially those in the private sector, were “sick” of the ever-increasing tax and bureaucratic burden being imposed by the Government.

He added that it seemed as if the Government was trying to “stifle” business at every turn, with constant policy and regulatory changes.

“I just don’t understand what they’re trying to do,” Mr Dupuch said of the Government. “It seems See pg b5

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March 1 residency threshold doubling goal ‘unacceptable’ Developer: Not enough time for market to adjust ‘If we lose one investor from this, it’s one too many’ Govt spokesman reveals ‘target’ implement date

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Government’s seeming intent to double the permanent residency investment threshold by March 1 was yesterday branded “unacceptable” by a Bahamian developer, as it gave the market too little time to adjust.

Jason Kinsale told Tribune Business that “if we lose one investor because of this it’s one too many”, especially in an environment where the Bahamas’ creditworthiness had just been downgraded to ‘junk’.

The developer, whose projects at ONE Cable Beach and Thirty|Six Jason Kinsale on Paradise Island are targeted at the market that will be most heavily impacted by the Government’s policy change, said there had been no official confirmation of when it will be implemented.

However, Elcott Coleby, the deputy director of Bahamas Information Services (BIS), appeared to confirm that the Government plans to implement the change within two months of the New Year.

He wrote in his regular weekly news round-up: “The Government is targeting March 1, 2017, as the effective date for the increase in the minimum investment threshold from $500,000 to $1 million for foreigners wanting to be fast tracked to become permanent residents of the Bahamas.”

Mr Kinsale told Tribune Business that the apparent implementation date had left See pg b5

PAGE 2 , Friday, December 30, 2016

THE TRIBUNE

Bringing your company closer together for 2017 Every New Year brings with it an air of uncertainty. Savvy business professionals and executives understand that in order to experience any degree of success, well thought-out corporate decisions must be made. High achievement in business is not a game of chance, but rather strategic planning and careful execution of those plans.

Today, we share seven tips for ensuring senior business executives start the year off right…

Tip 1: Reassess the company’s vision, mission statements and core values.

Determine whether or not they still line up with the direction the company is heading in. Do not do this in isolation. Bring your

brightest minds to the table, and leave the room rejuvenated.

Tip 2: If you have not done so already, create the short-term, four-quarter business plan for 2017.

Again, be wise to enlist as many voices as possible.

Every department head and emerging leader should be invited to participate.

Tip 3: The company’s mission, vision, core values and business plans are useless if they are not widely, deliberately and succinctly communicated throughout the organisation.

A meeting at the beginning of every month, where staff hear from executives on where the company is going, and how it will ensure success, is vital. Be careful to make workers

feel part of the company’s success, and ensure they buy into the vision.

Tip 4: Conduct individual assessments, and create personal development plans for each employee.

Do not take old baggage into 2017. Affirm each team member’s value to the company, highlighting their strengths, weaknesses and those areas you want them to focus on and explore.

Be careful to tap into what the employee wants to accomplish this coming year, be it professional or personal, and do all you can to participate in that success. In larger organisations, you may not necessarily be the person meeting with every team member, but make the personal touch the culture

of your organization, and make each of your executives do it.

Tip 5: Give the office space a face-ift.

Nothing extravagant or costly is required; just enough to get the attention of everyone. Perhaps a few plants here and there, or tasteful Bahamian paintings. Shift the desks around a bit. Anything to send the message that you are shaking things up a bit, and doing them differently. These little things go a long way.

Tip 6: Start the year with an office social.

This may involve a good Bahamian breakfast, ‘after work’ coffee at Starbucks, or just a private, intimate gathering at the poolside of the president. Convince your employees that full

engagement is the new order of the day.

Tip 7: Give your clients and faithful customers a small token of appreciation.

Perhaps a personalised email, a small discount on the next purchase, a company mug and calendar, or coffee and Dunkin Donuts for the first week in January. Be sure to tell them, that you value and appreciate their business and partnership.

Happy is the business that heeds this advice in 2017.

• NB: Ian R. Ferguson is a talent management and organisational development consultant, having completed graduate studies with regional and international universities. He has

Ian ferguson served organsations, both locally and globally, providing relevant solutions to their business growth and development issues. He may be contacted at tcconsultants@coralwave.com.

Popeyes second store sees over 100 sales in first 20 minutes A Bahamian fast food franchise says its second location generated 108 sales within 22 minutes of opening.

Almost one year after the Popeyes Louisiana Kitchen franchise was introduced to the Bahamas through the opening of its Prince Charles Drive flagship restaurant, the brand opened its second location on Carmichael Road.

Aetos Holdings, the Bahamian franchise holder, invested $3 million in the new site after starting construction on September 25, 2016. It hired more than 70 employees for the December 20 opening.

Chris Tsavoussis, Aetos Holdings’ president, told his employees: “Thank you for believing in Popeyes.

Thank you for standing beside us night after night as we worked to complete this

building. Thank you for your loyalty, your dedication and your team spirit.”

The official opening, which was held on December 22, was attended by the minister of youth, sports and culture, Dr Daniel Johnson; Tommy Thompson, deputy director-general of tourism; and Cheryl Bachelder , chief executive of Popeyes Louisiana Kitchen.

Popeyes’ latest Carmichael location

Customers getting in their orders at the newest Popeyes location.

L-R: Chris Tsavoussis, president of Aetos Holdings; Cheryl Bachelder, chief executive of Popeyes Louisiana Kitchen; Dr Daniel Johnson, minister of youth, sports and culture; and Tommy Thompson, deputy director-general of tourism, officially cutting the Popeyes Carmichael ribbon.

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THE TRIBUNE

Friday, December 30, 2016, PAGE 3

RBC chief says rate cut’s impact is ‘huge’

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A senior commercial bank executive yesterday said the Central Bank’s decision to slash the Discount rate by 50 basis points will ultimately put more money into Bahamian pockets, adding: “The importance of it cannot be overstated.”

Robert Pantry, Royal Bank of Canada’s (RBC) vice-president of business development for the northern Caribbean, told Tribune Business: “It’s big plus; it’s huge.”

“The reduction in the Prime [Discount] rate will put more money in individuals pockets, meaning more disposable income. When people have more disposable income that goes right back into the economy.”

Following the Central Bank’s 0.5 percentage point cut to the Discount rate last week, taking it to 4 per cent, the commercial banks yesterday confirmed in a newspaper advertisement that they would follow suit by dropping Prime from 4.75

Adds that importance ‘cannot be overstated’ Move to boost disposable income, spending And will aid ‘struggling Bahamian families’ per cent to 4.25 per cent.

Given that all variable rate loan facilities in the Bahamas are typically linked to Prime, this reduction means that the Central Bank cut will be passed on to many mortgage holders and other borrowers.

The reduction in debt servicing costs for households and businesses will, in theory, free up money for consumer spending and investment, respectively, boosting Bahamian economic activity.

It will also serve as a form of relief for borrowSee pg b6

Franchise gives realtor 30% business increase

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A leading realtor yesterday said Harbour Island’s status as a high-end destination made it the perfect location for his company’s latest office, adding that its franchise partnership had boosted business levels by 30 per cent.

Mario Carey told Tribune Business that having secured the rights for the Better Homes & Gardens Real Estate (BHG) franchise for the entire Bahamas, his company was targeting three additional offices across the country before the end of 2017.

The president of Better Homes & Gardens Real Estate MCR Bahamas said: “My goal is by the end of 2017 I would have an additional three offices open.

We know we will have Bimini by the first quarter.

We have the property; the building is under renovation.

“We have to keep Abaco

URCA budget to rise 71% in 2017

By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net The Utilities Regulation and Competition Authority (URCA) is proposing a 70.9 per cent increase in its total budget for 2017, as a result of near-doubling its workforce and plans to acquire its head office.

The communications and energy sector regulator, in its draft annual plan, said it planned to grow its staff from 19 in 2016 to 36, both “to improve its effectiveness” and ensure knowledge transfer as it seeks to cope with expanded responsibilities.

URCA assumed its role as regulator for the energy sector in early 2016, and it is proposing a huge yearover-year increase in capital spending - from $455,000 to $5.21 million - to enable it to finance the acquisition of Frederick House.

Its head office is situated on Frederick Street in downtown Nassau, and URCA described the increase as a “one-off” that would generate “significant cost savings” through opportunities such as rental income.

“It should be noted that the 2017 budget reflects capital expenditure and depreciation expense increases due to URCA’s proposed acquisition of its office premises at Frederick House,” URCA’s 2017 draft annual plan said.

“During 2015 and 2016, URCA took steps to manage its medium to long-term space requirements and, to that end, URCA identified in Frederick House an opportunity to manage its medium to long-term property costs by acquiring premises in lieu of rental.

“Frederick House provides ample space for URCA’s immediate needs, adequate space for anticipated expansion, and additional space which can generate rental income.

“URCA has calculated See pg b6

Regulator to acquire Frederick House head office And near-double staff as energy regulation ramps up $8.2m in fee income to cover operating expenses

Carey targets three more office openings in 2017 Harbour Island launched yesterday Bimini and Abaco next, with Exuma/ Freeport after on the radar, and then it’s a toss up between Exuma, and Freeport. It just really depends on where we see

there is potential for good growth.”

Mr Carey added that any island that lacks adequate airlift and aviation facilities would have difficulties with its real estate market.

“It’s not a very attractive place for real estate agents to operate without airlift because you are not going to survive off the local consumer; you need that foreign investor,” he explained.

“Harbour Island is the luxury destination as far as real estate is concerned, and we represent the luxury brand. We have, within

the Better Homes and Gardens model, what they call the ‘Distinctive Collection’.

That collection focuses on any property over $1million.

“That’s Harbour Island’s price point; almost like the starting point. Being a luxury market specialist I felt that it was a good place to expand. I think that there is an opportunity there,” Mr Carey continued.

“It’s a competitive market. Our brand is a lifestyle brand and is very modern in the tools that it uses, accesses and resources.

See pg b6

PAGE 4 , Friday, December 30, 2016

Govt and Central Bank in rate cut ‘panic attack’ From pg B1 revenues and creating unplanned borrowings and expenditure, Mr McCartney said the Bahamas’ downgrade predicament had been building for almost 50 years.

He argued that root cause was the inability of any PLP or FNM administration to produce a ‘balanced Budget’ since the arrival of Majority Rule in 1967, creating a gradual debt build-up that exploded as a result of the 2008-2009 recession.

Slamming the two major parties for “terrible economic and fiscal mismanagement”, Mr McCartney described the FNM and PLP as “two sides of the same coin that got us into this mess”.

The DNA leader said Mr Christie had been quick to criticise the former government’s fiscal policies when

in Opposition, but had subsequently managed to outdo it in “spending like drunken sailors”.

Reflecting on the preChristmas economic developments, Mr McCartney said the interest rate cut’s timing threatened to undermine its effectiveness, given that most persons would perceive it as a riposte to S&P. “When they heard about the downgrade, the Central Bank decided to cut interest rates, something they should have done a long time ago,” the DNA leader told Tribune Business.

“It was panic. It was twofold. They panicked, and they had to show they were doing something to counter the downgrade.”

Mr McCartney said the Central Bank had resisted calls from the private sector and others to reduce

interest rates for five-anda-half years, yet it suddenly jumped into action “on the heels of the fourth downgrade suffered by this administration”.

The DNA leader, who is himself a businessman with interests in the pharmaceutical, real estate and education sectors, said the reduced borrowing/debt servicing costs would assist his ventures “a little, but not enough”.

“It’s a bit late for them to cut it now,” he added. “They did it as a result of panic.

They needed to cut it a bit more; they’re behind the ‘8ball’ again. They are reactive when they didn’t have to be.”

John Rolle, the Central Bank’s governor, last week denied that the 0.5 percentage point cut to the Discount Rate was a direct response to the Bahamas losing its investment grade creditworthiness.

He was backed by Gowon Bowe, the Bahamas Chamber of Commerce and Employers Confederation’s

(BCCEC) chairman, who suggested last week that the Central Bank had been studying a cut for some time.

However, other observers were left questioning whether the Central Bank had compromised its autonomy and independence, and if it had bowed to Government pressure to produce something positive following the ‘junk’ downgrade.

Apart from describing S&P’s analysis as flawed, and blasting the downgrade as unwarranted and premature, the Prime Minister has also tried to blame it on the two Category Four hurricanes that have hit the Bahamas.

Joaquin is estimated to have caused $105 million in damages when it struck the southern Bahamas in 2015, while Matthew’s impact has been pegged at around $1 billion in terms of total economic losses.

The Government was forced into borrowing an extra $150 million to deal with Matthew-related relief, repairs and infrastructure restoration, creating considerable doubt over whether it will hit its $100 million GFS deficit target for 2016-2017.

Mr McCartney, though, slammed the Government’s attempt to blame the two hurricanes for the latest downgrade and its fiscal woes.

“Oh, please,” he told Tribune Business. “The Prime Minister is talking foolishness again.

“Remember, this is the

same Prime Minister who, back in the Abaco by-election after Ingraham had quit, said: ‘You can pray to God all you want, but you have to come through me’.

“How does he reconcile this statement about it being ‘an act of God’ with his statement about having to come through him? How do you reconcile that, Mr Prime Minister?” Mr McCartney added.

“These statements are going to be his Achilles heel in this election. No one is more powerful than God, yet when things go bad you blame him? Don’t blame God on this one.”

The DNA leader said the Government had, in Joaquin’s aftermath, pledged to implement measures to ensure that its Budget and fiscal plans would no longer be thrown off course by natural disasters.

Yet Mr McCartney argued that it was just as unprepared for Matthew as it had been for Joaquin.

He added that the roots of the Bahamas’ present fiscal crisis went much deeper, and had been building for decades under successive PLP and FNM administrations.

“This is a combination of not only the PLP’s bad fiscal policy, but 40 years of terrible management of our economy by the FNM and PLP,” Mr McCartney told Tribune Business.

“We Bahamians should be mad as hell, because both the PLP and FNM got

US regulator threatens top Bimini developer with $219k sanction From pg B1 other guests with nine forhire flights between July 10 and July 19, 2015. The flights were between the Miami area and Bimini in

Share your news The Tribune wants to hear from people who are making news in their neighbourhoods.

Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award.

If so, call us on 3221986 and share your story.

the Bahamas “The companies operated the flights when they did not hold the required FAA certificate to carry passengers for hire, or the economic authorisation from the Department of Transportation to operate as an air carrier,” the statement added.

“Additionally, the pilots flying the planes had not undergone required training and proficiency checks to conduct the operations involved. The FAA alleges that the companies advertised to perform the operations despite not having FAA authorisation for the operations.

“The companies have asked to meet with the FAA to discuss the case.”

Resorts World Bimini, in

THE TRIBUNE us into this mess. Christie, when in Opposition, was talking about how the FNM were spending like drunken sailors, and now they’re doing the same thing.

“They’re the two sides of the same coin that got us into this mess. He’s [Mr Christie] gone beyond the FNM on deficit spending.

Both of these parties are incapable of handling our economy. They’ve proven it time and time again.”

Tribune Business’s own review of Budget data, based on the Government’s own statistics, shows that the Christie administration likely added more to the Bahamas’ $6.778 billion national debt in four years than its predecessor did in five.

While the Ingraham administration, based on the GFS deficits it incurred, added just over $1.5 billion to the national debt between 2007 and 2012, its successor almost outpaced this rate of ‘red ink’ accumulation in three.

In the period closing with the 2014-2015 fiscal year, the Christie administration generated $1.408 billion in cumulative GFS deficits.

If IMF projections of a near-$300 million deficit for 2015-2016 hold, and assuming the forecast deficit of $100 million for 2016-2017 is hit (a tall order post-Matthew), the current government will have added $1.808 billion to the national debt during its tenure.

response to Tribune Business inquiries, confirmed that it was seeking talks with the FAA over the allegations and proposed fine.

“We’re disappointed that the FAA deemed it necessary to propose civil penalties for these limited flights from back in July 2015,” the Bahamas-based developer said.

“As the FAA stated, we look forward to meeting with them to resolve this matter shortly.”

Resorts World, a subsidiary of the Malaysian conglomerate, Genting, has effectively taken over the former Bimini Bay development from original developer, the Miami-based Capo Group.

After overcoming legal challenges from environmental activists, and changes to its guest transportation plans via sea, the developer has already expanded the project via a Hilton-branded hotel, which employs several hundred persons.

THE TRIBUNE

Friday, December 30, 2016, PAGE 5

March 1 residency threshold doubling goal ‘unacceptable’ From pg B1 him lost for words, given the potential negative impact it would have on his projects and the wider market.

“If it is March 1, it’s definitely not enough time, and it’s going to send a few alarm bells into the financial services industry as well, as they need time to advise their clients and make them feel comfortable,” he explained.

“It’s just too soon. It’s not acceptable. I don’t know what to say. It’s just unnecessary, and if we lose one investor because of this it will be one too many.”

The Thirty|Six developer,

in particular, questioned what would happen to sales in process – but not completed – by March 1.

Mr Kinsale and leading realtors, such as NAI Bahamas Realty’s Larry Roberts and Damianos Sotheby’s George Damianos, have all previously warned via this newspaper that plans to double the real estate investment threshold for accelerated permanent residency consideration threaten to cost this nation significant investment and business.

The ONE Cable Beach developer estimated that the residency market accounted for 50 per cent

Residency change ‘great plan to stop investors coming’ From pg B1

as if they’re trying to stifle everything but, as much as they do, people are still buying.

“It just feel that every way they turn, everything they do, is to put in another screw. People are sick of it.”

Mr Dupuch added that

to advertise today in the tribune call @ 502-2394

his concerns extended beyond the Bahamian real estate market to issues such as the Government narrowing the ‘window’ for ValueAdded Tax (VAT) filings and payments by one week to 21 days.

“Put it this way,” he added. “If S&P have their concerns, and the downgrade is to ‘junk’, I have my concerns. Sometimes I think I’m watching TV, but it’s real; it’s true.

“Things like them changing VAT to the 21st now; what does that do for them?

A week? It really impacts businesses at year-end. Because it’s a holiday, you basically have 12-13 days to do your year-end and VAT.

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of the Bahamas’ current real estate business, with many purchases occurring at price points between $500,000 to $1 million.

And Mr Damianos, Damianos Sotheby’s International Realty’s president, suggested that 60 per cent of active real estate projects would be negatively impacted by the policy change.

This means the Bahamas can ill-afford to destabilise this market segment, which is what the Government’s planned increase to the ‘fast track’ threshold threatens to do.

Markets and investors are always undermined by uncertainty, and the Government’s constant tinkering with the tax code and real estate market – as in this case – frequently impact economic activity responsible for generating its tax revenues.

“You never know what’s next,” Mr Kinsale told Tribune Business of the likely impact on developers and investors.

“We need every possible tool in our tool belt to sell these days. Why make it harder, unless there’s some unknown reason we’re not aware of.”

Mr Kinsale added that there had been no consultation with impacted industries over the proposed change in the permanent residency threshold, which this newspaper revealed is being driven by the Ministry of Financial Services.

“We haven’t got any official confirmation from the Government whatsoever,” he said of the March 1 date.

“We’ve written to them and got no response.

“I just don’t know what’s happening. They haven’t made any official an-

nouncement of any dates; just nothing.”

Mr Kinsale previously called for the threshold to remain at $500,000, but said that if the Government remained resolute in changing it, there needed “to be a notice period and grandfathering period”.

He added that any notice period should last “at least one year”, with existing projects and developments where sales are already underway allowed to continue marketing under the old policy.

Tribune Business earlier revealed that the proposed change to the permanent residency threshold did not receive unanimous Cabinet support or approval.

Developers and realtors are especially concerned with both the potential change and how it is implemented, given the impor-

tance of the second home market to their industries and the wider Bahamian economy.

With the Bahamian segment relatively flat, the second home sector has been one that realtors have been able to rely on to generate sales momentum over the past few years.

With 80 per cent of real estate sales inventory priced below $1 million, they fear that any change - especially one that might be perceived negatively by foreign buyers - could drive a significant chunk of the market to other jurisdictions.

And a ‘drying up’ of such buyers would produce wider ‘ripple effects’ in the Bahamian economy, reducing work for the construction industry and a variety of other trades whose business is tied to the real estate and second home markets.

“It’s OK for me, as I’m not a Kelly’s, but for businesses with a lot of inventory, but it doesn’t make sense to make them pay a week earlier. Still, my dad said you can’t fight City Hall.”

Many observers believe the Government has narrowed the VAT remittance window so it can improve a strained cash flow position, getting its hands on its revenues a week earlier to enable it to meet a civil service and public sector wage bill near $60 million per month.

Mr Dupuch, who had been off-island when the Bahamas’ creditworthiness was downgraded to ‘junk’ status, added: “I was looking at it from outside, and it’s like: ‘Jesus, we’ve imploded’.”

Meanwhile, Ryan Knowles, an HG Christie realtor, told Tribune Business that he understood the Government’s rationale for seeking to increase the

permanent residency ‘fast track’ threshold to $1 million.

But, while this may assist in attracting the “cream of the crop” among the global investor community, Mr Knowles echoed concerns voiced by other realtors and developers.

He warned that the policy change would “eliminate a large part” of the residency market that bought between the $500,000 and $1 million price points, and called for existing developments targeted at this segment to be ‘grandfathered in’ and given a ‘grace period’ to adjust.

“I understand the rationale behind it, wanting to bring in the cream of the crop; the ultra high net worth individuals,” Mr Knowles told Tribune Business of the threshold’s ‘doubling’ from $500,000 to $1 million.

“That’s a good thing. The

challenge is that there are developers who have invested millions of dollars in developing properties and condominiums, targeting clients in the $500,000 to $1 million price range.

“The question is: If they have product that is finished or ready to sell, how is this going to affect them? It’s going to impact them negatively.”

Mr Knowles added: “It’s a pretty large part of the market that will eliminate, and we need to look at that and grandfather in projects already finished or have a grace period.

“They need to be flexible, and look at how they implement, but on the whole I don’t think it’s a bad thing.”

Developers and realtors are especially concerned with both the potential change and how it is implemented, given the importance of the second home market to their industries

and the wider Bahamian economy.

With the Bahamian segment relatively flat, the second home sector has been one that realtors have been able to rely on to generate sales momentum over the past few years.

With 80 per cent of real estate sales inventory priced below $1 million, they fear that any change - especially one that might be perceived negatively by foreign buyers - could drive a significant chunk of the market to other jurisdictions.

And a ‘drying up’ of such buyers would produce wider ‘ripple effects’ in the Bahamian economy, reducing work for the construction industry and a variety of other trades whose business is tied to the real estate and second home markets.

NOTICE PANDO OASIS HOLDINGS LTD. N O T I C E IS HEREBY GIVEN as follows: (a) PANDO OASIS HOLDINGS 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 22nd 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 30th day of December, A. D. 2016 _________________________________ Bukit Merah Limited Liquidator

LEGAL NOTICE

LEGAL NOTICE

LEGAL NOTICE

NOTICE

NOTICE

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

INTERNATIONAL BUSINESS COMPANIES ACT (No.45 of 2000)

In Voluntary Liquidation

In Voluntary Liquidation

In Voluntary Liquidation

Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), SSM Investment Fund Ltd. (the “Company”) is in dissolution.

The date of commencement of the dissolution is December 28, 2016. Luciane Ribeiro Moreno is the Liquidator and can be contacted at Rua Afonsa Braz, 747, AP 41D, Vila Nova Conceição, CEP 04511-011, São Paulo – SP, Brazil. All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before January 26, 2017.

Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), LB Investment Fund Ltd. (the “Company”) is in dissolution. The date of commencement of the dissolution is December 28, 2016.

Luciane Ribeiro Moreno is the Liquidator and can be contacted at Rua Afonsa Braz, 747, AP 41D, Vila Nova Conceição, CEP 04511-011, São Paulo – SP, Brazil. All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before January 26, 2017.

Luciane Ribeiro Moreno Liquidator

Luciane Ribeiro Moreno Liquidator

Notice is hereby given that, in accordance with Section 138 (4) of the International Business Companies Act, (No.45 of 2000), CI Investment Fund Ltd. (the “Company”) is in dissolution.

The date of commencement of the dissolution is December 28, 2016. Luciane Ribeiro Moreno is the Liquidator and can be contacted at Rua Afonsa Braz, 747, AP 41D, Vila Nova Conceição, CEP 04511-011, São Paulo – SP, Brazil. All persons having claims against the above-named Company are required to send their names, addresses and particulars of their debts or claims to the Liquidator before January 26, 2016.

Luciane Ribeiro Moreno Liquidator

PAGE 6 , Friday, December 30, 2016

Govt urged: ‘Get a handle’ on Airbnb market’s explosion From pg B1 the Government’s ability to receive revenue.”

While the 10 per cent room/occupancy tax was eliminated at end-2014, the Government is likely to be losing out on other revenue streams as a result of Airbnb’s growth, especially the 7.5 per cent Value-Added Tax (VAT) that replaced it.

Airbnb is an online marketplace and network that enabled homeowners to list/rent short-term stays in their residential properties, with the cost set by the property owner.

Mr Carey said that while banks are not lending based on Airbnb models yet, he is in talks with at least one commercial institution on this.

“If a property has a stream of income by Airbnb, you need to look at that and lend against that income stream,” said Mr Carey, adding that his company has handled home rentals as high as $25,000 per day.

Edell Farquharson, a real estate agent and owner of Briland Soul, told Tribune Business: “I know for a fact that the country is losing revenue when we are not regulating these particular markets.

“If we have an investor come here and purchase a home, and they are renting it out through a company abroad, all of those funds are exiting the country.

“I think it is a great opportunities for Bahamians to really make some money in real estate. We tend to purchase a house and just want to live in it, rather than think outside the box about how to make it an incomegenerating property. I think Airbnb and things of that nature should be more regulated, and so should property management in this country.”

Major US stock indexes close slightly lower; oil price slips Associated Press – A day of quiet trading on Wall Street ended Thursday with major U.S. stock indexes posting slight losses for the second day in a row.

Banks and energy companies led the slide, while high-dividend stocks like utilities, real estate investment trusts and phone companies rose as bond yields fell. The price of U.S. crude oil closed lower.

Small-company stocks fared better than the rest of the market, nudging the Russell 2000 slightly higher.

Trading was light ahead of the New Year’s Day holiday.

“The market is just taking a breather here,” said Jeff Zipper, managing director of investments for The Private Client Reserve of U.S. Bank. “We moved so much in the month of November, there may be some profit-taking, maybe positioning for the first quarter.”

The Dow Jones industrial average fell 13.90 points, or 0.1 percent, to 19,819.78. The Standard & Poor’s 500 index slipped 0.66 points, or 0.03 percent, to 2,249.26 The Nasdaq composite lost 6.47 points, or 0.1 percent, to 5,432.09.

The Russell 2000, which tracks small companies, added 2.35, or 0.2 percent, at 1,363.18.

American flags fly in front of the New York Stock Exchange. Global shares mostly fell in thin trading yesterday, taking their cues from a slide on Wall Street.

A stronger yen helped send Japanese stocks lower. (AP Photo) The major stock market indexes eked out small gains in early trading Thursday. But by midmorning, they drifted mostly lower and remained in the red the rest of the day.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.47 percent from 2.51 percent late Wednesday.

More stocks rose than fell on the

New York Stock Exchange.

Sears jumped 10 percent after the struggling retailer said it had secured a new line of credit. The stock added 82 cents to $9.

Newmont Mining climbed 7.6 percent, the biggest gainer in the S&P 500 index. The stock added $2.49 to $35.27.

Investors got some favorable economic data from the Labor Depart-

URCA budget to Franchise gives realtor rise 71% in 2017 needs by 12,000 square pg B3 30% business From feet, with tenants producing that the acquisition, while rental income to defray excreating a one-off increase penditure that is currently increase in budget in 2017, will result From pg B3

We’re going to have a very competitive advantage in addition to bringing on a local broker, Edell Farquharson, who is from Harbour Island and is very well respected and well connected.”.

Mr Carey said that since become a franchisee for BHG in April, its first international partner outside the US, his business had increased 30 per cent.

“Back in April I launched the brand,” he added. “We embraced it, attended the workshops and got my agents to buy into the brand and understand the theory behind it.

Since then my business has gone up 30 per cent.”

in significant cost savings, due to rental income opportunities in the short to medium term, and additional savings once URCA has repaid the loan financing which URCA proposes to engage to effect the acquisition. These cost savings should lead to reductions in URCA fees once realised.”

The regulator estimated that Frederick House exceeded URCA’s space

recovered from licensee fees.

“Having regard to the purchase price, even if no tenants were secured the building would have ample room for future growth, at an operating cost (inclusive of depreciation) which is only marginally higher than the rental paid by URCA in previous years,” the regulator said.

URCA is projecting that

RBC chief says rate cut’s impact is ‘huge’ From pg B3 ers, many of whom are overleveraged and struggling to meet their obligations.

“One of the things we are hoping for as well is to help Bahamian families better save for other goals, so they don’t have to rely to heavily

MARKET REPORT WEDNESDAY, 28 DECEMBER 2016

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

BISX ALL SHARE INDEX: CLOSE 1,937.80 | CHG 0.01 | %CHG 0.00 | YTD 113.85 | YTD% 6.24 BISX LISTED & TRADED SECURITIES 52WK HI 4.25 17.43 9.09 3.55 4.70 0.12 8.22 8.50 6.10 10.60 15.50 2.72 1.60 5.82 9.30 11.00 9.00 6.90 12.25 11.00

52WK LOW 2.50 17.43 8.19 3.50 1.77 0.12 5.50 8.05 5.50 7.70 11.91 2.18 1.31 5.60 6.70 8.56 6.12 6.35 11.81 10.00

1000.00 1000.00 1000.00 1000.00

900.00 1000.00 1000.00 1000.00

PREFERENCE SHARES

1.00 106.00 100.00 106.00 105.00 105.00 100.00 10.00 1.01

1.00 105.50 100.00 100.00 105.00 100.00 100.00 10.00 1.01

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

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

52WK LOW 100.00 100.00 100.00

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

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

SYMBOL FBB17 FBB18 FBB22

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

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

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

113.70 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

MUTUAL FUNDS 52WK HI 2.01 3.91 1.93 169.70 140.34 1.46 1.67 1.56 1.10 6.94 8.65 5.92 9.94 11.15 10.46

52WK LOW 1.67 3.04 1.68 164.74 116.70 1.41 1.61 1.52 1.03 6.41 7.62 5.66 8.65 10.54 9.57

THE TRIBUNE

LAST CLOSE 4.06 15.85 9.09 3.52 1.77 0.12 5.60 8.50 5.83 10.49 13.23 2.18 1.60 5.82 9.30 10.95 8.74 6.75 11.93 10.00 1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.00 100.00 100.00 100.00 10.00 1.01 LAST SALE 100.00 100.00 100.00 109.02 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CLOSE 4.06 15.85 9.09 3.52 1.77 0.12 5.60 8.50 5.83 10.49 13.23 2.19 1.60 5.82 9.30 10.95 8.74 6.75 11.93 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 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 100.00 100.00 100.11 100.00 100.00 100.00 10.00 1.01

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00 100.00 100.00

CHANGE 0.00 0.00 0.00

108.73 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

-0.29 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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

VOLUME

7,500 364

VOLUME

NAV 2.01 3.90 1.93 169.70 140.34 1.46 1.66 1.56 1.07 6.94 8.65 5.92 9.59 11.15 9.57

EPS$ 0.304 1.351 1.086 0.220 -1.134 0.000 0.185 0.551 0.508 0.541 0.528 0.094 0.166 0.510 0.612 0.960 0.650 0.703 0.756 0.000

DIV$ 0.090 1.000 0.000 0.160 0.000 0.000 0.187 0.260 0.200 0.360 0.610 0.060 0.040 0.240 0.275 0.000 0.280 0.120 0.640 0.000

P/E 13.4 11.7 8.4 16.0 N/M N/M 30.3 15.4 11.5 19.4 25.1 23.3 9.6 11.4 15.2 11.4 13.4 9.6 15.8 0.0

YIELD 2.22% 6.31% 0.00% 4.55% 0.00% 0.00% 3.34% 3.06% 3.43% 3.43% 4.61% 2.74% 2.50% 4.12% 2.96% 0.00% 3.20% 1.78% 5.36% 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 7.00% 6.00% Prime + 1.75%

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

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

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

YTD% 12 MTH% 3.11% 4.17% 3.28% 4.34% 2.07% 2.93% 4.73% 5.64% 5.70% 7.66% 3.56% 3.91% 2.22% 2.79% 2.80% 3.18% 2.99% 2.26% 4.05% 8.28% 5.93% 13.53% 2.73% 4.73% 3.97% -3.53% 2.96% 4.33% -4.26% -6.22%

NAV Date 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Sep-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 30-Nov-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016 31-Jul-2016

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

ment, which reported that fewer Americans applied for unemployment benefits last week, continuing a nearly two-year trend that suggests a solid job market. Weekly requests for jobless aid fell 10,000 to a seasonally adjusted 265,000. Over the past year, the number of people collecting benefits has fallen almost 5 percent to 2.1 million.

Benchmark U.S. crude fell 29 cents to close at $53.77 a barrel in New York. Brent crude, used to price international oils, slipped 8 cents to close at $56.14 a barrel in London.

Markets overseas were mixed.

Germany’s DAX fell 0.2 percent, while France’s CAC 40 closed 0.2 percent lower. Britain’s FTSE 100 ended the day with its second record-close in two days, trading 0.2 percent higher at 7,120.26 points.

British stocks have benefited from a decline in the value of the pound against other world currencies, which tends to drive up earnings for the multinationals and energy companies that dominate the index.

Earlier in Asia, Japan’s benchmark Nikkei 225 slipped 1.3 percent, while South Korea’s Kospi inched up 0.1 percent. Hong Kong’s Hang Seng rose 0.2 percent.

it will recover its entire operating expenditure of $7.458 million, plus some $740,884 in depreciation, via $8.199 million in fees obtained from its communications and electricity licensees.

It added that staff costs associated with energy sector regulation would grow by 75 per cent year-overyear in 2017, as it hires personnel to assist with the ramp up of its oversight efforts.

“Professional services expenditure is anticipated to increase by 87 per cent due to potential litigation concerning URCA’s jurisdiction, commencing an efficiency/operational au-

dit of the sector and other regulatory projects during the year,” URCA said of energy regulation.

“It is anticipated that in future years, there will be a reduced reliance on external consultants as URCA engages new, experienced staff in the electricity sector department.”

URCA added that fee income from the energy sector would more than double in 2017, going from $993,250 this year to $2.438 million, aided in part by the fact it covers a full year rather than the nine-month period in 2016. The bulk of energy sector fees will be paid by Bahamas Power & Light (BPL).

on consumer debt to meet their short and long-term goals,” Mr Pantry said.

Then, referring to the interst rate cut, he added: “The importance of it cannot be overstated. It’s going to have a huge impact on the economy and a lot of Bahamian families who may be struggling now based on the economic realities. It’s going to be a major plus for the economy and for families.”

The Central Bank’s rationale for reducing the Discount rate, which is the rate at which it lends to commercial banks, is that the move will reduce capital costs for Bahamian companies planning to expand and take advantage of Baha

Mar’s phased opening in 2017, plus other resort-related projects.

The regulator is also hoping that its action will help to stimulate a domestic housing market still burdened by almost $600 million in non-performing mortgage loans, with the rate cut reducing monthly payments for existing borrowers, while potentially helping new ones to qualify.

The interest rate cut, which the Central Bank has ordered the commercial banks to pass on to borrowers via a 0.5 percentage point reduction in the Prime rate to 4.25 per cent, represents a ‘wealth transfer’ from savers to borrowers.

PUBLIC NOTICE This is to inform the general public that the private roadways and parking areas situated in the Harbour Bay Shopping Centre between East Bay Street and Shirley Street will be closed on Sunday 1st, January, 2017 in order to preserve the right of ownership thereof.

The Owners

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 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.

THE TRIBUNE

Friday, December 30, 2016, PAGE 7

What it means if Trump names China a currency manipulator WASHINGTON (AP) — President-elect Donald Trump has vowed to name China a currency manipulator on his first day in the White House.

There’s only one problem - it’s not true anymore.

China, the world’s secondbiggest economy behind the United States, hasn’t been pushing down its currency to benefit Chinese exporters in years. And even if it were, the law targeting manipulators requires the U.S. spend a year negotiating a solution before it can retaliate.

Trump spent much of the campaign blaming China for America’s economic woes. And it’s true that the U.S-China trade relationship is lopsided. China sells a lot more to the United States than it buys. The resulting trade deficit in goods amounted to a staggering $289 billion through the first 10 months of 2016.

But in fact, for the past couple of years China has been intervening in markets to prop up its currency, the yuan, not push it lower.

It went a step further on Thursday, watering down the significance of the dollar and adding 11 additional currencies in a foreign-exchange basket, according to a document released by the China Foreign Exchange Trading System.

WHAT DOES CURRENCY HAVE TO DO WITH THE TRADE GAP? When China’s yuan falls against the U.S. dollar, Chinese products become cheaper in the U.S. market and American products become more costly in China.

So the U.S. Treasury De-

partment monitors China for signs it is manipulating the yuan lower. Treasury has guidelines for putting countries on its currency blacklist. They must, for example, have spent the equivalent of 2 percent of their economic output over a year buying foreign currencies in an attempt to drive those currencies up and their own currencies down.

Treasury hasn’t declared China a currency manipulator since 1994.

WHAT WOULD HAPPEN IF THE US DECLARED CHINA A CURRENCY MANIPULATOR? Probably not much, at least initially.

If Treasury designates China a currency manipulator under a 2015 law, it is supposed to spend a year trying to resolve the problem through negotiations.

Should those talks fail, the U.S. can take a number of small steps in retaliation, including stopping the U.S. Overseas Private Investment Corp., a government development agency, from financing any programs in China. Trouble is, the United States already suspended OPIC operations in China years ago — to punish Beijing in the aftermath of the bloody 1989 crackdown in Tiananmen Square.

So naming China a currency manipulator is mostly “just a jaw-boning exercise,” said Amanda DeBusk, chair of the international trade department at the law firm of Hughes Hubbard & Reed and a former Commerce Department official.

“There’s no immediate consequence.”

Legal Notice

IS CHINA GUILITY OF USING CURRENCY TO HELP ITS EXPORTERS? For years, China pretty clearly manipulated its currency to gain an advantage over global competitors. It bought foreign currencies, the U.S. dollar in particular, to push them higher against the yuan. As it did, it accumulated vast foreign currency reserves — nearly $4 trillion worth by mid-2014.

But now the Chinese economy is slowing, and Chinese companies and individuals have begun to invest more heavily outside the country. As their money leaves China, it puts downward pressure on the yuan.

The yuan has dropped nearly 7 percent against the dollar so far this year. The Chinese government has responded by draining its foreign exchange reserves to buy yuan, hoping to slow the currency’s fall. China’s reserves have dropped by $279 billion this year to $3.05 trillion.

If Beijing stepped back and let market forces determine the yuan’s level, it likely would fall even faster, giving Chinese exporters even more of a competitive edge.

So Beijing is doing the opposite of what Trump says it’s doing. Cornell University economist Eswar Prasad earlier this month called Trump’s plans to name China a currency manipulator “unmoored from reality.”

“The whole discussion is ironic,” said David Dollar, senior fellow at the Brookings Institution and a former official at the World Bank and U.S. Treasury Department. “It’s out of date.”

residents walk past a board highlighting the security markers on the latest Yuan note outside a bank in Beijing, China. President-elect Donald Trump has vowed to label China a currency manipulator on his first day in the White House. He says Beijing keeps its currency low to unfairly benefit its exporters. But he’ll struggle to prove the case if it goes before the World Trade Organization: Economists say China isn’t meddling in markets to push the yuan lower; it’s doing the opposite, trying instead to keep it from falling faster. (AP Photo) COULD TRUMP DO ANYTHING ON HIS OWN? Gary Hufbauer, an expert on trade law at the Peterson Institute for International Economics, notes that as president, Trump could nonetheless escalate any dispute over the currency on his own. Over the years, Congress has ceded the president broad authority to impose trade sanctions. Trump has threatened to slap a 45 percent tax, or tariff, on Chinese imports to punish it for unfair trade practices, including alleged currency manipulation. Brookings’ Dollar said China likely would bring a case to the World Trade Organization “against any protectionist measures that are a violation of U.S. commitments to the WTO,” which oversees the rules of global commerce and rules on trade disputes.

NOTICE

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

INTERNATIONAL BUSINESS COMPANIES ACT (No. 45 of 2000)

GLEEN HELEN CORPORATION

K & P INVESTMENTS LTD.

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000), GLEEN HELEN CORPORATION is in Dissolution.”

“Notice is hereby given that in accordance with Section 138 (4) of the International Business Companies Act (No. 45 of 2000).K & P INVESTMENTS LTD., is in Dissolution.”

The date of commencement of dissolution is the 28th day of December, 2016.

Marco Lourenco Muller, Rua Jacob Pilger Nᵃ 243, Centro, Nova Hartz, RS, Brasil Liquidator

Notice is hereby given that in accordance with Section 138(4) of the International Business Companies Act. 2000, APPLE HILL LTD. is in dissolution as of December 29, 2016 International Liquidator Services Inc. situated at 3rd Floor Whitfield Tower, 4792 Coney Drive, Belize City, Belize is the Liquidator.

LIQUIDATOR ______________________

Legal Notice

NOTICE

In Voluntary liquidation

NOTICE APPLE HILL LTD. In Voluntary Liquidation

In Voluntary liquidation

The date of commencement of dissolution is the 22nd day of December, 2016.

Mr. Sergei Kurashvili., of 2-aya Miusskaya Str. 3/5-23, Moscow, Russia Liquidator

NOTICE

NOTICE

NOTICE

Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Westbrook Ventures Limited is in dissolution and the date of commencement of the dissolution is 29th December 2016.

Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Spanaway Ventures Limited is in dissolution and the date of commencement of the dissolution is 29th December 2016.

Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Vineland Ventures Limited is in dissolution and the date of commencement of the dissolution is 29th December 2016.

Lorna Kemp and Roman Knowles LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP 64284 Nassau, Bahamas

Lorna Kemp and Roman Knowles LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP 64284 Nassau, Bahamas

Lorna Kemp and Roman Knowles LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP 64284 Nassau, Bahamas

NOTICE

NOTICE

NOTICE

Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Goldsboro Ventures Limited is in dissolution and the date of commencement of the dissolution is 29th December 2016.

Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Dillon Ventures Limited is in dissolution and the date of commencement of the dissolution is 29th December 2016.

Pursuant to the provisions of Section 138 (4) of the International Business Companies Act, (as amended) NOTICE is hereby given that Summerland Ventures Limited is in dissolution and the date of commencement of the dissolution is 29th December 2016.

Lorna Kemp and Roman Knowles LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP 64284 Nassau, Bahamas

Lorna Kemp and Roman Knowles LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP 64284 Nassau, Bahamas

Lorna Kemp and Roman Knowles LIQUIDATORS c/o Clairmont Trust Company Limited Pineapple Grove #5 Lyford Cay P.O. Box SP 64284 Nassau, Bahamas

PAGE 8 , Friday, December 30, 2016

THE TRIBUNE

AP Explains: Did Trump just create 8,000 jobs?

WASHINGTON (AP) — Donald Trump gave himself kudos for the creation of 8,000 new U.S. jobs by a Japanese tech mogul, saying it was proof of “the spirit and the hope” stirred by his presidential win.

But for those particular jobs, Trump was basically taking a bow for the second time. The jobs were part of a public commitment made on December 6 by Masayoshi Son upon emerging from the elevator bank at Trump Tower after a meeting with Trump.

Son pledged that companies controlled by his firm SoftBank would invest $50 billion in the United States and create 50,000 jobs.

On Wednesday, Trump celebrated the planned creation of 5,000 jobs by wireless carrier Sprint and 3,000 jobs by OneWeb_both companies where Son is a dominant investor.

Speaking from the front door of his Mar-a-Lago resort in Florida, Trump did not outright mention Son’s previous commitment but used the opportunity once again to declare a victory for U.S. workers. Although 8,000 jobs_on their own_ are unlikely to dramatically move the needle toward the faster economic growth he has promised, the Trump transition team treated the jobs as a preview of things to come.

“This is just the tip of the iceberg,” spokesman Sean

some would be at outside contractors. The jobs will help “support” its customer service and sales teams, among other divisions at the company. Details about pay and benefits are being finalized, according to Sprint.

The company also said it will discuss with business partners, states and cities about where to create these jobs— but a spokeswoman told The Associated Press that it will not receive any federal, state or local government incentives for adding these positions.

Still, Sprint will likely have fewer workers than when Son’s firm SoftBank acquired a controlling stake in 2013. Sprint has shed about 9,000 employees since 2012; it now employs roughly 30,000, according to annual reports.

President-elect Donald Trump, left, accompanied by SoftBank CEO Masayoshi Son, speaks to members of the media at Trump Tower in New York. Trump gave himself kudos for the creation of 8,000 new U.S. jobs by Japanese tech mogul Son, saying it was proof of “the spirit and the hope” stirred by his presidential win. But for those particular jobs, Trump was basically taking a bow for the second time. (AP Photo) Spicer told reporters Thursday.

Ever the dealmaker, Trump has actively courted and shamed companies.

The president-elect has pushed defense contractors Boeing and Lockheed-Martin to reduce their costs via his Twitter account, while he fulfilled a campaign promise by preserving 800 jobs at the Carrier furnace plant in Indianapolis that

were previously bound for Mexico.

With the Sprint and OneWeb announcement, there may be slightly less than meets the eye. There is one clear winner, though: Son, worth an estimated $19 billion. Since the presidential election, Sprint stock has soared roughly 40 percent.

Son’s SoftBank controls 83 percent of the Kansasbased carrier.

Here are some more facts about the SoftBank commitment.

—Are all of Sprint’s pledged 5,000 jobs at the company?

No. Of the 5,000 jobs Sprint said it would create or bring back to the United States in its upcoming fiscal year,

— What are the 3,000 new jobs at OneWeb? Son’s SoftBank invested $1 billion this month in OneWeb, which is building a network of satellites to provide broadband internet.

The investment will help finance the construction of a factory in Florida that could produce 15 satellites a week, generating 3,000 engineering, manufacturing and support jobs over the next four years, according to a December 19 statement.

Son linked his investment to meeting with Trump.

“Earlier this month I met with President-elect Trump

and shared my commitment to investing and creating jobs in the U.S.,” he said in a statement about the investment. “This is the first step in that commitment.”

— Who are the big winners from this announcement?

In addition to those who get hired for the new jobs, a clear victor is Masayoshi Son. Trump twice praised the Japanese billionaire in December, signaling that Son might as well have a direct line to the White House.

This could be helpful for Son’s other business plans.

Under the Obama administration, he saw a marquee deal to merge Sprint with rival T-Mobile fail. Regulators opposed combining two of the four largest mobile telecom companies in the United States. Analysts say a Trump administration would be more likely to approve telecom mergers.

The exposure with Trump has already been lucrative for Son. Before the election, Sprint stock was trading for less than it did after SoftBank acquired the company. At the current price of about $8.80 per share, the value of SoftBank’s stake has risen by more than $8 billion since Trump’s victory. Son founded SoftBank in 1981 and is the company’s CEO, chairman and major shareholder.

Pay to rise for millions as 19 states increase minimum wage ALBANY, N.Y. (AP) — It will be a happy New Year indeed for millions of the lowest-paid U.S. workers.

Nineteen states, including New York and California, will ring in the year with an increase in the minimum wage.

Massachusetts and Washington state will have the highest new minimum wages in the country, at $11 per

hour.

California will raise its wage to $10.50 for businesses with 26 or more employees. New York state is taking a regional approach, with the wage rising to $11 in New York City, to $10.50 for small businesses in the city, $10 in its downstate suburbs and $9.70 elsewhere. Some specific businesses — fast-food restau-

rants and the smallest New York City businesses — will have slightly different wage requirements.

“This $1.50 increase, I cannot even comprehend or tell you how important this will be,” said Alvin Major, a New York City fast-food worker. The 51-year-old father of four helped lead the fight for the increase in his state, one of several suc-

cessful efforts by fast-food workers and other low wage workers around the country. “The price of food has gone up. Rent has gone up.

Everything has gone up. ...

This will make a difference for so many people.”

Voters in Arizona, Maine, Colorado and Washington approved increases in this year’s election. Seven other states, Alaska, Florida, Missouri, Montana, New Jersey, Ohio and South Dakota, are automatically raising the wage based on indexing. The other states seeing increases are Arkansas, Connecticut, Hawaii, Michigan and Vermont.

Additional increases are slated for later in the year in Oregon, Washington, D.C., and Maryland.

In Arizona, the state Chamber of Commerce and Industry filed a lawsuit challenging the increase, which will raise the minimum wage from $8.05 to $10.

On Thursday, the Arizona Supreme Court refused to temporarily block the raise.

Workers and labor advocates argue the increases will help low-wage workers now barely making ends meet and boost the economy by giving some consumers more money to spend.

But many business owners opposed the higher wages, saying they would lead to higher prices and greater automation.

supporters of a $15 minimum wage for fast food workers rally in front of a McDonald’s in Albany, N.Y. Millions of workers across the U.S. will see their pay increase as 19 states bump up their minimum wages as the new year begins. California, New York and Arizona are among the states with increases taking effect Saturday, Dec. 31, 2016 or Sunday, Jan. 1, 2017. New York state is taking a regional approach, with the wage rising to $11 in New York City, $10 in its suburbs and $9.70 upstate. (AP Photo) Some restaurant owners may consider reducing portion sizes or charging for side dishes that were once included in the price of a meal to absorb the increase, according to Melissa Fleischut, president of the New York State Restaurant Association.

“I’m sure prices will go up where they can, but restaurants want to avoid sticker

shock,” she said. “They’re going to have to get creative.”

The adjustments in New York, California and several other states are part of a series of gradual increases to a $12 or $15 hourly wage.

The minimum wage will also go up this weekend in 22 cities and counties, including San Diego, San Jose and Seattle.