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WEDNESDAY, FEBRUARY 19, 2025
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‘You’ll never claw back’: Deficit five times’ target By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
• Opposition: Economy won’t ‘wipe out $300m shortfall’ THE Opposition last night charged that “the Bahamian economy has never performed • Gov’t deficit to November so aggressively as to wipe out a up 92% on ‘23 at $356.5m $300m shortfall” after the Government unveiled a deficit over five times’ its full-year target. • Revenue up but cannot cover Dr Duane Sands, the Free $61m spending jump National Movement’s (FNM) chairman, told Tribune Business that Bahamians should “not hold our breath” that the forecast $69.8m full-year target for 20242025 will be met after the Ministry of Finance unveiled a $356.5m fiscal deficit for the five months to end-November. That figure, which is some 410.7 percent or more than five-fold higher than the full-year goal, is also near-double or 92.3 percent
greater than the $185.4m in ‘red ink’ incurred at the same endNovember point in the previous 2023-2024 fiscal year. And, if the Government repeats December 2023’s monthly deficit of $65.9m, it will likely face a halfyear deficit of more than $400m when it unveils the mid-year Budget next Wednesday in the
House of Assembly. If this comes true, the Davis administration will need to generate a staggering surplus of around $330m during the fiscal year’s second half to reverse this trend and come close to the full-year deficit target.. Michael Halkitis, minister of economic affairs, did not respond to Tribune Business’s message
DR DUANE SANDS seeking comment before press time last night. However, Dr Sands voiced scepticism that the Government will be able to make up all the lost ground during the 2024-2025 fiscal year’s second half even though it has begun
to generate Budget surpluses where tax and revenue income exceeds its spending - during this period. The Davis administration produced a $92m surplus during the six months to end-June last year, which many suspect was at least partially achieved by delaying payment of outstanding bills and payables until the current fiscal period, but it will likely need to achieve a four times’ greater sum this time around to come in close to projections. The Ministry of Finance, in its November 2024 report, revealed that month’s deficit expanded by 18.5 percent or $12.9m year-overyear, growing from $69.6m the year before to $85.5m. The data shows this was driven entirely by spending increases that exceeded improved revenue collections
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Deltec close to settling Atlantis drops legal $13.475m US Justice appeal over Wendy’s Department dispute PI restaurant • Bahamian bank says deputy US AG has ‘agreed terms’ • Funds represent alleged proceeds from crypto fraud • US gov’t had sought forfeiture of sum seized in 2023 By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN bank is close to resolving its dispute with the US Justice Department over the ownership of $13.475m that was seized by the federal authorities for allegedly being generated by a massive fraud. Deltec Bank & Trust, in filings with the eastern Virginia district court last Thursday, asserted that itself and the US Justice Department “have agreed to terms that will settle all issues” surrounding who is the rightful owner of this sum that was seized by the US Secret Service during its probe into a multi-million dollar international crypto currency scam. The Lyford Cay-based institution’s spokesperson did not respond to Tribune Business e-mails seeking comment before press time last night, but the move to settle the dispute comes just 23 days after Deltec served notice of its claim to the
$13.475m via earlier filings with the same court. “Claimant asserts that it has a legitimate, lawful ownership interest in the $13.475m that was seized by the US from its account ending in 0328 at Mitsubishi UFJ Trust and Banking Corporation on June 13, 2023 pursuant to a seizure warrant issued by a US magistrate judge,” Deltec said in a document that was signed by its chairman, Jean Chalopin, on January 23, 2025. The Bahamian bank and trust company’s filing was made in response to the US Justice Department initiating legal proceedings on December 20, 2024, just prior to the Christmas and New Year holidays, where it was seeking an order that the multi-million dollar sum be forfeited to itself. Deltec acted to stop that happening without a fight and, in last week’s filing just 17 days after its initial move, said the two parties were close to resolving the fate of the
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By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net WENDY’S last night said it is tasting success in its “long and hard-fought battle” to expand to Paradise Island after Atlantis agreed to drop its Supreme Court challenge to the proposed restaurant. Gail Lockhart-Charles KC, attorney for Aetos Holdings, the fast-food chain’s Bahamian franchisee, told Tribune Business in a statement that her client has “always maintained” that converting the former Scotiabank branch property for its flagship brand as well as Marco’s Pizza was “lawful and appropriate”
- especially since it had obtained all necessary planning approvals. Pointing out that both the Town Planning Committee and Subdivision and Development Appeals Board had rejected the opposition from Atlantis and other Paradise Island hotels, she said: “On October 24, 2023, the Town Planning Committee approved Psomi Holdings Ltd’s proposal to develop a Wendy’s restaurant and Marco’s Pizza on Paradise Island at the location of the former Scotiabank building. “Atlantis challenged this approval by filing an appeal with the Subdivision and Development Appeal Board. In July 2024, the Board dismissed
RENDERING WENDY’S RESTAURANT ON PARADISE ISLAND the appeal, confirming that the proposed use of the site for the restaurants did not violate any existing restrictive covenants and was compatible with the surrounding area.” This, though, did not result in closure. “Atlantis then appealed to the Supreme Court,” Mrs Lockhart-Charles confirmed. “Meanwhile, Wendy’s continued operating its state-of-the-art branded mobile kitchen while the appeal process was underway. On February 5, 2025, Atlantis filed a notice of discontinuance,
officially ending the appeal. “It has been a long and hard-fought battle, but our client has always maintained that the use of the site for Wendy’s and Marco’s Pizza was lawful and appropriate, with all necessary planning approvals properly obtained and granted.” It is unclear whether Sterling Global Financial, the Hurricane Hole developer, and the Paradise Island Tourism Development Association (PITDA), which represents the likes of the Ocean
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Ex-MP blasts sewage woe at North Eleuthera Airport By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net A FORMER MP yesterday blasted the sight and smell of raw sewage that he says greets Bahamian travellers and tourists when walking between terminals at North Eleuthera’s airport. Stephen ‘Hank’ Johnson, ex-FNM MP for central and south Eleuthera, voiced his “embarrassment” with the much-used airport’s current state just months after the Government signed a $55m loan agreement with the Saudi Development Fund to finance its transformation.
STEPHEN ‘HANK’ JOHNSON Dirt, broken tiles, sewage, disorganisation and the absence of promised upgrades were among the complaints cited by Mr Johnson in a widely-circulated social media voice note following his recent trip from North Eleuthera to New Providence.
Bahamas’ total debt now exceeds $13bn By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net TOTAL Bahamian public sector debt grew by $312.8m over the previous year to exceed $13bn at end-December 2024, it was revealed yesterday, “driven” almost entirely by central government borrowing. The Ministry of Finance’s public sector debt bulletin for the 20242025 fiscal year’s second quarter and first six months revealed that the central government accounts for
$11.749bn, or the majority, of those liabilities with its own indebtedness having expanded by $92.4m or 0.8 percent in the three months to year-end. However, The Bahamas’ debt-to-GDP ratio reduced slightly despite the increased borrowing, falling from 79.5 percent at end-September 2024 to 79.2 percent when the 2024-2025 second quarter closed. The report also disclosed that government business enterprises (the former state-owned enterprises) and agencies were also reducing their debt, in contrast to the
Asserting that he is not being political, Mr Johnson urged the Government to “get it together” because “we need to deal with it”. Acknowledging the Saudi loan agreement, he decried the absence of significant progress at North Eleuthera’s airport todate. Mr Johnson said that, while awaiting renovations and upgrades, passengers especially tourists - should still feel comfortable rather than having to contend with disorganised lines, dirt and foul odours. “I understand that they’re building a new terminal, but let’s make sure that our guests are comfortable. They shouldn’t have to come here in that
condition, walking from terminal to terminal and sewage on both sides,” he added. “I was rather surprised. I just couldn’t believe it. And I myself walked from one terminal to another and the sewage [was] on both sides of the walkway. I heard one of the guests say: ‘Oh, what is that smell?’ You know how I felt...? I couldn’t even answer the lady. Something needs to be“The done.Government needs
central government, via “net repayment positions”. The Ministry of Finance, meanwhile, reiterated that the Government is still exposed to significant rollover or refinancing risk given that more than 25 percent, or one quarter, of its debt portfolio is due to mature during 2025. Some $2.58bn, of which 90 percent is held by Bahamian investors, is due to mature over the nine months between October 2024 and end-June 2025. This debt will have to be refinanced via the issuance of new bonds, Treasury Bills or other securities, which exposes the Government to the potential - though unlikely at present danger - that a major investor may elect not to rollover and demand repayment of its principal.
“The average time to maturity (ATM) stabilised to 6.13 years over the recent two quarters. By end-December 2024, 26.78 percent of the debt portfolio was due to mature in one year compared with 27.45 percent in the prior quarter,” the Ministry of Finance said. “The proportion of external debt maturing within one year receded to 7.76 years, while net issuance of longer dated maturities reduced the internal component to 41.5 percent from 43 percent in September 2024... Debt forecasts incorporate reissuances of Treasury bills ($1.222bn), Treasury notes ($33.8m) and Central Bank advances ($331m).
to step in there. Because I’ll tell you this. For the amount of flights that American [Airlines] have coming in - American had two, two of those jets in
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