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TUESDAY, JANUARY 31, 2023
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Minnis: Gov’t is ‘penny wise, pound foolish’ on health VAT • Too many ‘living on edge’ for medical bill hike • Broker chief: Claims payout levy is ‘cash grab’ • Doctor: Patients face being ‘royally screwed’
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net AN EX-PRIME minister yesterday accused the Government of being “penny wise and pound foolish” over the imminent change in VAT treatment of health insurance claims payments. Dr Hubert Minnis, asserting that he “would not have gone down that road”, told
Tribune Business that medical bills for the thousands of Bahamians with private insurance will inevitably increase due to the Ministry of Finance’s decision to stop insurers recovering from the Government the 10 percent VAT levied on claims payouts. Suggesting that the VAT will be passed on to patients, either partially or in full, he argued that many Bahamians already “living on the edge”
Governor eyes IMF-beating 4-6% GDP growth for 2023 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE CENTRAL Bank’s governor yesterday forecast that The Bahamas could beat International Monetary Fund (IMF) projections by growing its economy “anywhere in the 4-6 percent range” for 2023. John Rolle, addressing the regulator’s 2022 fourth quarter economic briefing, suggested The Bahamas could this year exceed international expectations that have its gross domestic product (GDP) expansion pegged at around 4.1 percent for the full 12 months. His more upbeat forecast came as he said it was
• Bahamian economy grows 7-9% in 2022 • Country must seek new expansion drivers • Private sector US$ demands jump by 30% “likely that the economy grew by between 7 and 9 percent in 2022”, driven by the continued postCOVID tourism rebound combined with resort and real estate-based foreign
direct investment (FDI) projects. However, Mr Rolle reiterated that, once the tourism industry completed its full post-pandemic rebound this year, The Bahamas must explore all available options “to increase potential growth” given that annual economic expansion is once again expected to “settle” back below 2 percent in line with historical performance. Responding to questions from Tribune Business, the Governor said: “In terms of the expected growth rate for The Bahamas this year, I would say we expect anywhere in the 4-6 percent range [as] reasonable. The forecast that are out there
THE Central Bank’s governor yesterday said the creation of a Bahamian Financial Stability Council will help “develop a playbook” for how regulators and the Government manage an industry “crisis”. John Rolle, addressing the regulator’s 2022 yearend and fourth quarter economic briefing, said moves to establish such
an entity had “not been triggered” by any current concerns regarding the stability of the Bahamian financial system. Confirming that its membership will be comprised of financial services regulators, such as the Central Bank and Securities Commission, as well as relevant government agencies and ministries, he added that its role will be to provide “co-ordinated oversight of the financial services sector” and allow for a
collective response to any systemic threats. The Governor was replying to Tribune Business questions after the Financial Stability Board discussions were revealed by Karen Rolle, the Central Bank’s inspector of banks and trust companies, in her 2022 fourth quarter newsletter to the regulator’s licensees. “In the context of resolution, the Central Bank is also leading an initiative with other local regulators and the Ministry
THE Central Bank’s governor yesterday conceded that plans to eliminate the use of cheques by end-2024 are “not as simple as flipping a switch” given the resistance encountered thus far to the move. John Rolle, addressing the regulator’s 2022 full-year and fourth quarter economic briefing,
admitted that not all feedback and consultation received by the Central Bank was “receptive to change”. He added that it was in talks with the Government “around how that process looks” as it continues to push for modernisation of The Bahamas’ payments system through the increased use of digital transactions. Noting that public education and outreach initiatives are planned to persuade Bahamians on
the merits of eliminating cheques as a form of payment, he added that the Central Bank will be forming a steering committee featuring industry stakeholders - the commercial banks, credit unions and insurers - to drive the process with a focus on three so-called “key performance indicators”. Asserting that the Central Bank “understands” the concerns over, and opposition to, cheque elimination, Mr Rolle said: “It
due to soaring inflation will likely react by either dropping their private health insurance coverage or making other “sacrifices” such as foregoing more expensive, healthier meals. The end result, Dr Minnis argued, would be a sicker population that delayed treatment and medications, while further burdening a strained public health system.
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
JOHN ROLLE by the IMF and others line up reasonably close with what we expect.” The IMF, which is due to release its updated World Economic Outlook today, is this far forecasting a 4.1 percent increase in economic output (GDP) for The Bahamas in 2023. The World Bank, too, is predicting the same level of growth, which places Mr Rolle’s estimates at the upper end of their range and, indeed, slightly above.
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of Finance to establish a Financial Stability Council (FSC). The FSC would be a non-statutory interagency body established to monitor and review emerging risks that might impact financial stability, as well as facilitate regular discussions and system-wide analysis on the financial strength of systemically important financial institutions in The Bahamas,” she wrote. Confirming this was accurate, Mr Rolle said
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Cheque elimination not a ‘simple flip of switch’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
DR HUBERT MINNIS
DR CONVILLE BROWN
Hotels eyeing ‘unprecedented forward bookings’ during 2023
Financial Stability Council to develop ‘crisis playbook’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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will focus on kind of key performance indicators that we should be targeting for improvement as we move to reduce the use of cheques and even reduce the use of cash. “These initiatives would include increasing the focus on the speed at which transactions are being settled in the electronic funds transfer space, looking at the cost to be transacting relative to alternative [payment methods] and
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THE Bahamas Hotel and Tourism Association’s (BHTA) president yesterday disclosed the industry is eyeing “unprecedented levels of forward bookings” for the 2023 first half and full year after December beat historical trends by 10 percent. Robert Sands, speaking after the Ministry of Tourism, Investments and Aviation revealed that December 2022 set a monthly record with 900,000 visitors to The Bahamas, told Tribune Business there “is no question” that the industry will beat pre-COVID comparisons from its former best-ever year of 2019. He added that the improvement will not be felt only in resort occupancy levels but, more importantly, higher average daily room rates (ADRs) and revenue generation which is already ahead of
2022 “for sure” and also set to beat 2019 comparisons. “I think the reality remains that there is significant pent-up demand for travel post-COVID, and certainly The Bahamas has been the beneficiary of that,” Mr Sands told this newspaper. “Pent-up demand continues to grow for The Bahamas, and it manifested itself in the level of tourism seen in 2022. “I think we are wellpoised to exceed 2019 figures in 2023, and that’s a direct result if confidence in The Bahamas’ brand, pent-up demand for travel and the re-emergence of the MICE (meetings, incentives, conferences and events) market and groups that booked but could not travel in the COVID time period. I think all these things together point us in a strong and positive direction for 2023. “If January is any indication of what the rest of the year is like we will be well on our way to achieve
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