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TUESDAY, MAY 5, 2020

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CHRISTINE WHITFIELD

Realtors: ‘No brainer’ over sector restart By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net RE-OPENING the real estate sector to allow property viewings should be “a no brainer” given its economic importance, the Bahamas Real Estate Association’s (BREA) president argued yesterday. Christine Wallace-Whitfield said she and other BREA directors were pushing hard to persuade the government to treat it as an “essential service” that should be allowed to re-open given that its business did not involve multiple interactions with different parties. Pointing out that the sector was inextricably linked to construction and foreign direct investment (FDI), an area that could bring in much-needed foreign currency amid the continued tourism shutdown, Mrs Wallace-Whitfield said it also played a key role in a domestic economy that the government is cautiously moving to restart following the COVID-19 pandemic. She added that both residential and commercial tenants, some no longer able to afford their rent amid business closures and job and income losses, were desperately keen to move but unable to do so due to the real estate industry’s lockdown and wider economic restrictions. And inquiries from potential buyers are still coming in, the BREA chief added. “We have written to the prime minister sending in a very, very detailed letter,” Mrs Wallace-Whitfield told this newspaper. “We did our research on different international markets and we thought-out our points. “We basically wrote to him saying how real estate should be essential, and essential from the get-go. There are a lot of people in rental accommodation that need to make a move as they cannot afford the rent they are paying, so they need a chance to move. “With commercial rentals people are closing or need to find somewhere cheaper. And there seems to be an ongoing flow of interest in

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Bahamas downgrade hits cruise port costs By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net

HE Bahamas’ sovereign credit downgrade has increased the Nassau Cruise Port’s financing costs to a level “never” considered just 90 days ago, its top executive has revealed. Michael Maura, the cruise port operator/developer’s chief executive, told Tribune Business he and the company’s financial advisers had never believed they would have to price its just-launched $130m bond issue with an eight percent interest coupon until the COVID-19 pandemic struck. Anthony Ferguson, president of CFAL, which is the lead placement agent for the bond issue, explained that Standard & Poor’s (S&P) decision to further downgrade The Bahamas’ sovereign debt below “investment grade” status coupled with Moody’s move to put this nation “under review” to follow suit had immediately sent the price of the government’s US dollar debt soaring in

• $130m bond issue forced to 8% coupon • Price ‘never considered 90 days before’ • $400m boost if match Caribbean leader

NASSAU Cruise Port. secondary markets. He said the interest rate attached to this debt had “gone extremely high right after the downgrade”, jumping from the five to six percent range to eight percent, to reflect the increased risk associated with investing in Bahamian sovereign debt. Given that the government’s debt typically acts as the benchmark against which all other Bahamian debt capital raises in international markets are priced, Mr Ferguson explained that the Nassau Cruise Port had no choice but to increase the interest coupon attached

to its bond to eight percent - especially since $50m will be in US dollars raised from overseas investors. “Ninety days ago I never thought we’d be at eight percent. I never would have contemplated eight percent,” Mr Maura told this newspaper, adding that other Bahamas-based entities that have obtained or are seeking international financing - such as the Nassau Airport Development Company (NAD) - will also likely experience similar pricing/cost pressure as a result of the sovereign downgrade. “If you look at Bahamian

Prime [we’re priced] 375 basis points above,” Mr Ferguson added. “It’s a significant margin, a fair margin, and we did not want the US rate to be different from the Bahamian dollar rate as happened with NAD. Everyone will have the same risk dollar in it and will be compensated the same.” The Nassau Cruise Port’s financing costs associated with Prince George Wharf’s $284m transformation, including upfront fees and interest expenses during construction, are now projected to be $34.3m. A passenger facility charge (PFC) levied on all users of the cruise port will finance repayment of the $130m bond and an additional $80m worth of debt to be raised in 2021. The levy, which was $4 per head in 2019, is being increased to $5.50 this year and then to $8.50 per person in 2021. From 2022 onwards, all

SEE PAGE 3

Restrictions give $300m foreign reserves ‘buffer’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor yesterday said measures imposed to restrict foreign currency outflows will create $300m in “buffers” to safeguard the external reserves and the fixed US dollar peg. John Rolle revealed that the regulator has suspended all approvals for Bahamians seeking to invest in foreign securities and real estate, and requested that the National Insurance Board (NIB) liquidate “some” of its overseas investments and return the proceeds back home, as part of a package intended to protect the country’s monetary foundation from the COVID-19 fall-out. Signalling the Central Bank’s determination to maintain The Bahamas’ one:one fixed exchange rate with the US dollar, Mr Rolle said these two initiatives

• No overseas real estate/securities investments • NIB asked to liquidate ‘some’ US dollar assets • Central Bank to protect currency peg as priority

JOHN ROLLE will join the bar on Canadian-owned bank dividend remittances and relaxation on bank foreign exchange sales to the public in helping the foreign reserves to withstand the immense pressure imposed by the absence of tourism inflows. And he warned that the regulator was prepared to act swiftly in imposing even

harsher restrictions if the need arises, which would “target domestic import capacity” in a bid to conserve foreign currency resources that are set to experience a major reduction in 2020. While the suspension of economic activity for the past six weeks due to the national lockdown has kept the country’s foreign reserves at near-$2bn for the moment, Mr Rolle said the Central Bank is projecting a reduction “potentially exceeding $1bn” which would leave them somewhere between $800m and $1bn at year-end. And, although this level will still offer “adequate support in place to uphold the value of the Bahamian dollar fixed exchange rate”,

the governor said it was essential for The Bahamas to “maintain currency stability in the interim” - and prevent any possibility of a devaluation - while the economy attempted to recover from the COVID19 pandemic. “I would say that collectively, between the various measures that the Central Bank has identified, we’re looking at in excess of $300m in buffers,” Mr Rolle replied, when asked by Tribune Business how much the restrictions will save in foreign currency outflows. Addressing the Central Bank’s quarterly economic developments press conference, he added: “One should appreciate that we’re

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Return to business sends firms ‘ecstatic’ By YOURI KEMP and NEIL HARTNELL Tribune Business Reporters BAHAMIAN firms able to offer delivery and curbside pick-up were yesterday “ecstatic” about resuming commerce after a six to seven-week shutdown during which many earned zero income. Brent Burrows, general manager of CBS Bahamas (Commonwealth Building Supplies), told Tribune Business that the Prime Minister’s decision to move to Phase 1B of his COVID19 economic re-opening strategy meant the retailer can offer products and services five days per week via its e-commerce platform. “We’re ecstatic about that for our e-commerce platform that we have been trying to get approval for, and we’re ecstatic that we can deliver e-commerce and online shopping now five days a week now,” Mr Burrows said. CBS Bahamas, as a home and hardware retailer, is also permitted to open in-store for two days per week on Wednesdays and Fridays. Mr Burrows added: “Demand on Wednesdays and Fridays when we are open is extremely high. Our website is doing quite well, so it is still busy. I don’t know how long it’s going to last but at least we are getting some money in the till. “The website has been up and functional for three weeks now. Bear in mind we were only able to deliver on Wednesday and Friday’s up until Sunday evening, so it has been going well. We have partnered with a local company to do delivery, and we have been doing delivery ourselves, so it is going quite well.” Multiple companies able to take orders over the internet or phone, and fulfill them either by delivery or pick-up where there is minimal interaction with consumers, were yesterday able to earn their first revenues in just over a month-and-a-half following the mid-March COVID-19 lockdown. They were also able to recall numerous employees to work, thus giving those staff the first opportunity to earn in some six to seven weeks. Jeffrey Beckles, the Bahamas Chamber of

SEE PAGE 3

Economy may contract by ‘mid to upper teens’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamian economy may shrink by between 15-19 percent this year with a fully recovery of COVID19 losses not occurring until 2022, the Central Bank’s governor warned yesterday. John Rolle, in a bleak near-term assessment of the country’s post-pandemic prospects, said the Central Bank’s initial projection of an eight percent contraction in Bahamian economic output (gross domestic product or GDP) for 2020 was now “outdated”. And he warned that the Bahamas faced “excessively greater hardship” from COVID-19 in the short term than during the 2008-2009 recession, although he forecast that the recovery period will be much shorter than the decade it has taken the economy to rebound from

• Governor: Full recovery not until 2022 • Initial 8% GDP shrink forecast ‘outdated’ • Near-term ‘hardship greater’ than 08-09 the latter. “In our early work, when a lot of the analysis centred on the economy being in stasis for about three months, tourism being in stasis for three months, we would have arrived at an eight percent estimate,” Mr Rolle said for the size of 2020’s economic contraction. “If one relaxes that assumption we could get a contraction that could be in the mid to upper teens... We know eight percent is an outdated estimate.” The “mid to upper teens” projection would be in line with Standard & Poor’s (S&P) recent projection that The Bahamas will suffer a 16 percent, or nearly $2bn, contraction in GDP during 2020

due to the tourism shutdown and associated economic lockdown. The Central Bank’s earlier forecast would have been in line with the shrinkage projected by both the International Monetary Fund (IMF) and Moody’s, but Mr Rolle argued yesterday that it was “not useful” to get hung up on numbers and projections. Instead, he argued that the primary concern was “how that magnitude of shock affects the net inflows of foreign exchange”. Explaining the Central Bank’s projection that the Bahamian economy will take two years to fully recover from the pandemic, the Central Bank governor

added: “2022 is a point at which we think, if the recovery begins at a very gingerly pace in the near term, given all the public health and safety concerns and the prospects of a vaccine for COVID-19, it will take is until 2022 to be fully recovered. “It is not to say the recovery will not begin until that period. It is the mere fact that the economy will have had such large losses in 2020 that we expect in 2021, while the level of economic activity will be collectively higher than at present, it will not be at the level that erases all the losses that we are likely to incur this year.”

SEE PAGE 3

PAGE 2, Tuesday, May 5, 2020

THE TRIBUNE

GYM OWNERS PLEAD FOR EARLIER REOPENING By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net GYM and fitness centre proprietors yesterday argued they should be allowed to reopen on the basis that the industry represents no greater COVID-19 risk than the food stores. Sofia Whitehead, owner of Club One Fitness, told Tribune Business: “I think that there should be a plan, number one, rather than just shut down. There should just be a plan, have everyone calm down and then we can work with that. Just being closed, I am not sure about. “We should be able to schedule personal training sessions one-on-one, and we should be able to have a limited amount of people going in, even if it is only 20

percent occupancy. It really shouldn’t be completely shut down. Businesses are suffering, and also we have huge gyms with huge capacities. People are at greater risk of contracting the virus in the supermarkets than they would in our gyms if they are spread out.” Ms Whitehead added: “It’s not even just business that’s suffering. People are dying to workout. It’s not even us, but we have a bunch of athletes that are getting weak because they can’t work out. “Everything is completely vague. I have spoken to the attorney general [Carl Bethel QC] and they said ‘no, no opening for anything’, but at the same time I don’t know where these professional athletes are supposed to be working-out.

“I wish that they [the government] would think of a plan and be a bit more specific about the plan. That would be a bit better. At least a bit of a timeline, even if it’s just letting one person in at a time, but at least it would be something.” Speaking about the impact on her business, Ms Whitehead said: “We have a 12,000 square foot facility that has been empty for the last seven weeks. So I don’t understand why, in the supermarket, you have hundreds of people accumulating at once, and when you go to BTC everyone is standing in line, but then at the gym you can’t have ten people. “I understand why people may be concerned about people breathing heavily and their sweat being all over the place and other

bodily fluids, but if there is so much space and everything is disinfected then I don’t see a problem. I don’t see any difference with holding a shopping cart and holding a set of weights.” Ms Whitehead added that the COVID-19 lockdown will not stop Club One from reopening, and said the business has kept in touch with clients by offering complementary classes twice a day at 9am and 6pm over the last six weeks via Instagram for members and non-members. This will continue until the company and wider fitness industry is permitted to reopen. Dr Kent Bazard, general manager of Empire Fitness, said: “As business owners we are all going through a difficult time. Of course we want to get back to business as soon as possible. But we have to trust

the government’s decision, assuming they are making well-informed determinations and decisions on what they should do. “Looking at what’s being done with our neighbours next door, for example, Texas, Florida and Georgia, their fitness centres are open and operating using social distancing, and the big issue is the cleaning up of the equipment. “I hope within the next phase we can open even if we have some restrictions on how many persons we let in. I don’t think we need to wait until Phase five, but maybe we should be allowed to open at Phase two or three.” Dr Bazard said fitness centres have always practiced sanitary measures, and his members have to use towels. “Once persons are wearing masks and

practicing the social distancing, we don’t have to wait that far until Phase 5 to reopen,” he added. Dr Bazard said COVID19 risks can be minimised with basic social distancing, and added: “People are not just exercising for fun; a lot of people are exercising for their health. So that is something we really should consider that people need to get back to their health. “What we actually did was that we made ourselves available for professional athletes because Phase 1B has allowed for professional athletes to resume training. So we started a scheduled to allow professional athletes only to resume training during this period. Small group training and personal training is also something they should look at allowing to resume.”

LIQUOR STORES AMONG BUSINESSES REOPENING By YOURI KEMP Tribune Business Reporter ykemp@tribunemedia.net COMMONWEALTH Brewery’s retail arm was among multiple liquor stores able to yesterday start selling inventory that the industry feared might go past its sell-by date had the lockdown not eased. Ron Hepburn, Commonwealth Brewery’s director of retail, said its 700 Wines and Spirits chain “relaunched our online sales platform” after the government permitted companies to begin offering delivery and curb side pick-up services. “Here, individual customers can shop online and have their purchases delivered to their homes or businesses within 24 to 48 hours,” he said. “We are pleased to offer this service

to our customers in New Providence, Grand Bahama and Eleuthera. Access to this business to computer (B2C) platform will soon be re-activated in Acklins and Inagua.” “While we are pleased to be back at work after six weeks, we both value and agree with the government’s requirements for businesses to operate in the midst of the COVID-19 pandemic. In tandem with the government’s phased approach, we have staggered our resumption of services, modelling our new way of working to ensure that we are we maintain the highest standards of safety that protect both our employees and our customers.” The government yesterday moved the Bahamian economy to the second

stage of its phased re-opening, allowing businesses that can provide delivery and curb side pick-up to operate from Monday through Friday between the hours of 8am and 5pm. Mr Hepburn added: “Curbside pick-up is presently available in Acklins and Inagua, and we anticipate New Providence, Grand Bahama and Eleuthera having access to this service in the coming days/ weeks. As more islands open for commercial business, we will be reopening for online and curb side service to those communities. “While our retail business - 700 Wines and Spirits - slowly regains its momentum, Commonwealth Brewery is also offering service to our

business customers (mainly liquor stores and restaurants). These customers can place orders by e-mail or via phone. Commonwealth Brewery is also only offering delivery service as the method to receive purchases. “We are confident that the measures we are implementing meet the Bahamas Government safety requirements and Heineken global safety standards related to COVID-19, and we will continue to model our operations in a way that protects both our customers and employees.” Other liquor stores also moved rapidly to reopen and get employees back to work following six weeks of earning zero revenue. Jimmy’s Wines and

Spirits, the retail arm of the Bahamian Brewery and Beverage Company, told customers it is offering free home delivery in addition to curb side pick-up. “Following the government rules, all stores on all islands except Wulff Road will have curb side pick up. There is no minimum purchase required. Interested persons can contact the stores directly by the numbers on our website, or drive up to the store and a Jimmy’s representative will serve you while you remain in your vehicle,” the retailer said. “Please remember to wear your masks and observe social distancing at all times so we all can enjoy this new service. We also ask that you try to be patient with us as we all

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get used to this new process and try to serve you as quickly and efficiently as we can.” Liquid Courage, meanwhile, sent out a message explaining to customers how they could order via e-mail. It said: “You can also call in your order to the nearest location. Be prepared for the lines to be busy - e-mail is better. Call in your order and we will let you know when it is ready for curbside pick-up. “Please respect all social distancing guidelines and be patient with our hardworking Liquid Courage team while we adjust to this new process.... We will begin delivery service once the expected Monday rush slows, and we can ensure delivery times.”

THE TRIBUNE

Return to business sends firms ‘ecstatic’ FROM PAGE ONE

Commerce and Employers Confederation’s (BCCEC) chief executive, told Tribune Business that commercial activity was “very feverish” yesterday as consumers threw off the lockdown shackles to access products and services they had in some cases been unable to purchase for the lockdown’s duration. “The pace was very feverish today,” he said. “A lot of consumers were busy getting access to stores and businesses, and a lot of merchants were happy to get started. I think we’ll see it settle down tomorrow [today]. The signs were that we had a lot of people out there in great numbers accessing services. “The merchants who prepared for the inevitability of curb-side had an advantage because they were forward thinking and forward planning. In the coming days they will begin to refine things a bit more and be smoother in their operations. For the home and hardware stores doing pick-up and curb-side they’ll settle in and the flow will be more efficient.

Tuesday, May 5, 2020, PAGE 3

“From the amount of people out and about today they had money to spend, which was a good sign. All things considered it was a good day; a decent day. We’re happy to see people were excited about it, but are reminding them to be mindful of health protocols because we don’t want to get out there and be too gung-ho. We still have a country to protect.” Janice Major, owner of Floral Fantasia, which re-opened yesterday for phone and curb-side orders, said: “It is wonderful. Ninety-five percent of our customers always called in, except for peak periods like Mother’s Day and Valentine’s. We don’t have any orders yet, because we are just letting people know we are out there. We put advertisements on the radio and we What’s App’d all morning. “We can’t get flowers in until Wednesday if we’re blessed. I am so happy we are open. We will have two days to work with but that is still a blessing. That is two more days that we would have gotten had this not happened.” Ms Major added: “We are open from Monday to Friday from 9am to 5pm. On this Mother’s Day we would have normally started delivering from yesterday, and we would have gotten our flowers in from Friday past. “So now we are just getting permission from Florida to allow us to get flowers in, and we won’t get them in on the boat until Wednesday. We won’t

unpack them until Thursday, so we have Thursday and Friday to work from 9am to 5pm. But I have gift baskets readily available, so we were able to deliver things from yesterday. We are the biggest game in town when it comes to gift baskets.” Multiple businesses quickly let consumers know they have either reopened or are now able to offer products/services five days per week. Wulff Road-based Builders Mall, which includes FYP, Tile King and The Paint Centre, messaged: “Builders Mall will be open for pick up and delivery starting May 4, 2020, from 8am to 5pm in accordance with Phase 1B. “All customers doing curb side pick-up must call, e-mail or What’s App their orders in. When arriving at the store, park in a space and call the store to identify yourself and the parking space you are in and please stay in your vehicle.” Freeport Jet Wash told customers: “We are very pleased to be able to offer you ‘curb side’ parts delivery as of May 4, and in-store service as of Tuesday, May 5. “For curb side, we will call you when your order is ready and we will need your car license number for correct delivery to your vehicle. For walkin, please wear your mask at all times, and we ask that you observe distancing rules. Thank you for your patience as we learn together how to work this new service.”

Bahamas downgrade hits cruise port costs FROM PAGE ONE increases will be linked to inflation as measures by the consumer price index (CPI). Any year-over-year increases greater than five percent have to approved by the government as part of the agreement struck between the government and Global Ports Holding for the cruise port’s redevelopment. While the CPI’s typical average increase is 1.5 percent, Mr Maura, pictured, said the need for government approval will likely come into play due to the rise in global inflation sparked by the COVID-19 pandemic. “The more important thing for bondholders is that 85 percent of revenues will come from the passenger facility charge,” Mr Ferguson said. “It’s not a function of exorbitant rents. Those rents for waterfront property are very low.” Mr Maura added that the annual rental rate for Nassau Cruise Port’s retail, food and beverage and other tenants will be $46 per square foot, which he described as “very low” compared to prevailing rates that are charged on Bay Street. He argued that if Nassau could increase its per capita passenger spend by around $100 to match the $190 earned by St Maarten, the Caribbean leader, it would inject an extra $400m per annum into the city’s economy - and its Bahamian-owned businesses and employees - once passenger numbers recovered following the COVID-19 fall-out. And Mr Maura said The Bahamas had little choice but to invest substantially in upgrading a Nassau cruise port that had been “falling apart for years” given the increased competition from the cruise lines’ Bahamian private islands and southern Caribbean rivals. Carnival’s plans to resume sailing from Florida as of August 1 have also added to the urgency. “Our major gateway for tourism coming into The Bahamas, the busiest gateway in the country, its facilities have been falling apart - and falling apart for several years,” Mr Maura told Tribune Business. “When you consider that spending opportunity of an extra $100 to match what St Maarten gets, and the increased competition from the private islands, increased competition from the southern Caribbean ports, yet we have this decaying tourism infrastructure in front of our largest tourism gateway, we have to do something.” Pointing out that the cruise lines will have pumped a collective $1bn into upgrading their Bahamian private islands, Mr Maura said Nassau’s

competitiveness as a cruise port destination is under further pressure from the likes of Barbados, St Maarten, Antigua, San Juan, Tortola and Havana - all of which are “chasing new port opportunities”. “A big part of then justification for this project is you have the cruise companies in The Bahamas for those private islands, and exit surveys from cruise passengers saying Nassau is boring, Nassau is dirty,” he added. “Bahamians are saying that, too. Nassau is dying in front of all of us, and the cruise lines are putting $1bn into their private islands and the Caribbean ports are moving ahead. “Nassau had to do something. For passenger spend St Maarten is enjoying $190 per head. The US Virgin Islands is at $150. We here in Nassau are in the $80 range. The average in the Caribbean is around $90. We look at this as an opportunity to drive this passenger traffic up. “And if we can find $100 in incremental per capita passenger spending to get where St Maarten is, that’s $400m in extra spending into our local economy. That’s a

huge part of the economic lift this project brings with it for Bahamian food and beverage operators, taxi drivers, hair braiders, straw vendors.” Some observers had questioned pre-COVID-19 whether the cruise lines will continue to call on Nassau with the same frequency and passenger volumes as before due to both the presence of their nearby private islands and the fact their bid to run the capital’s cruise port was rejected in favour of Global Ports Holding.

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Economy may contract by ‘mid to upper teens’ FROM PAGE ONE Mr Rolle said the economic crisis sparked by COVID-19 will have a different impact to that of the 2007-2009 financial crisis, and subsequent recession, on the Bahamian economy. “The difference for us relates to the speed at which we recover,” he added. “It took The Bahamas a decade to recover from the great recession. In 2018 we obtained a level of tourism visitors in the stopover sector that we had in the 2000s. We do not anticipate any recovery that is of that duration. The economy is expected to regain its position faster.” Yet Mr Rolle warned: “However, the extent of the interim hardship is excessively greater because you are managing the extent to which the economy comes out of the shutdown. That is what is most important; measures to make sure we can endure beyond the extreme period of the shutdown. “If we don’t survive the shutdown then all the other metrics of how we can recover will have less value because most of the other fundamentals end up being askew. We’re equipped, and we’re certainly prepared, to continue to endure the necessary sacrifices that are necessary to make sure we come through this in one piece.” Mr Rolle said the Central Bank had yet to see any deterioration in the commercial banking industry’s non-performing loan portfolio, which measures credit 90 days or more past due, as a result of borrower inability to repay as a result of job and income loss. “We anticipate there will be some increase, and

there’s a lot of work going on around that,” he added. “More importantly, we believe the banks have a comfortable level of capital. The capital levels in domestic banks are far in excess of internationally recommended levels, and we’re confident the banks can absorb any losses from increased non-performing loans. That’s an area of comfort for us.” The governor added that intense discussions were ongoing between the Central Bank and Ministry of Finance over the government’s borrowing strategy, and especially the split between foreign currency and Bahamian dollar borrowing, given the impact this will have on the nation’s foreign exchange reserves. The Central Bank’s outlook depends on the government’s “ability to finance most of its deficit financing in foreign currency”, with some estimates suggesting it will need to raise between $1bn-$2bn to cover its financial holes and stimulate the economy post-COVID-19. “We know there’ll be a much higher than normal amount of financial need by the government,” Mr Rolle added. “The focus is really on ensuring that they borrow the appropriate amount in foreign currency versus local currency. “There will be some borrowing to come in local currency, but the balance has to be considerate as to how those funds are used to finance spending on imports. There’ll be those kind of discussions going on behind the scenes at the Ministry of Finance.’ Mr Rolle said the amount of foreign currency borrowing the government will be able to access in

the international capital markets, as well as The Bahamas’ ability to repay the amount of COVID-19 debt taken on, will also be key factors in its upcoming decisions. He added that there was “no intent to suspend the credit bureau roll-out process” as a result of the pandemic, adding that such such facilities would still be able to determine the individual’s creditworthiness amid the fall-out from an event beyond their control. The governor urged Bahamians to reach out to their lenders before they got into trouble. Elsewhere, Mr Rolle voiced optimism that the Bahamian digital dollar will be in a position to “circulate more widely” come July 2020. He explained: “The work to make the digital currency available to the rest of The Bahamas is progressing quite satisfactorily. “A lot of our financial institutions who are participating have advanced their software development to have seamless integration with the Sand Dollar. They’re in the midst of cyber security assessments of their platforms. “We expect that as we progress into the mid-summer months, meaning just north of July, we should be in a comfortable position to allow financial institutions to circulate Sand Dollars more widely. It was critical to get beyond the cyber security assessments.”

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PAGE 4, Tuesday, May 5, 2020

THE TRIBUNE

Restrictions give $300m foreign reserves ‘buffer’ FROM PAGE ONE still assuming that this foreign exchange is being diverted and used for other consumption in the economy. “When we do our overall outlook for the reserves, we assume all these measures have been in place and are contributing to the use of foreign exchange that takes place in the economy. Collectively, between the four sets of measures, we’re looking at in excess of $300m in buffers provided to foreign exchange activities.” Retaining this $300m within the Bahamian economy could yet prove vital to ensuring the country has sufficient foreign currency reserves to support the one:one peg with the US dollar. Tribune Business’ revelation last week about the prohibition on Canadian bank dividend repatriations sounded alarm bells in the private sector, yet this is just one measure in a wider package. Mr Rolle said that Bahamian and resident access to foreign exchange for international capital markets and real estate investments is suspended until the economic recovery becomes “entrenched”, giving no date for when this might be lifted. This blocks investors seeking access to global opportunities via both the Central Bank’s Investment Currency Market (ICM) and the Bahamian Depository Receipt (BDR) initiatives. The former, aided by the delegation of authority to the commercial banks, had allowed Bahamians and residents to buy and sell foreign currency at a five percent and 2.5 percent premium, respectively, above the official rate. The BDR initiative, meanwhile, allowed Bahamians and residents to make local currency investments in investment funds whose broker/dealer sponsors then converted into foreign currency for the purpose of acquiring international securities. This programme,

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ALL SHARE INDEX: CLOSE: 2,138.41 | CHG: -0.28 | %CHG: -0.01 | YTD: -93.19 | YTD%: -4.18 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 6.75 2.60 2.00 5.47 12.77 6.17 4.50 10.30 3.64 5.10 10.88 8.15 16.99 9.40 4.25 15.21

52WK LOW 3.35 20.91 5.50 5.39 1.89 0.67 2.00 10.21 5.60 3.75 5.41 2.53 1.80 8.00 6.63 13.04 6.98 3.14 13.90

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 Emera Incorporated Famguard Fidelity Bank Finco Focol J. S. Johnson

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

1000.00 1000.00 1000.00 1000.00

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

CAB6 CAB8 CAB9 CAB10 CHLA FBBA FCLB

PREFERENCE SHARES

1.00 10.00 1.00

CORPORATE DEBT - (percentage pricing) 52WK HI 100.00

52WK LOW 100.00

115.92 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

104.79 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

SECURITY Fidelity Bank Note 22 (Series B) +

SYMBOL FBB22

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

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

BAHAMAS GOVERNMENT STOCK - (percentage pricing)

LAST CLOSE 3.55 17.43 6.00 6.68 1.89 1.62 2.99 11.26 6.00 4.02 6.01 3.00 4.90 9.73 8.15 14.15 8.97 4.09 15.20

CLOSE 3.55 17.43 6.00 6.68 1.89 1.62 2.99 11.26 6.00 4.02 6.01 2.95 4.90 9.44 8.15 14.15 8.97 4.09 15.20

CHANGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.05 0.00 -0.29 0.00 0.00 0.00 0.00 0.00

1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSE 100.00

CHANGE 0.00

107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

0.00 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

LAST SALE 100.00 107.31 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

VOLUME 1,000

3,335

19,250

1,000

VOLUME

EPS$ 0.239 0.932 1.760 0.369 0.070 0.000 -0.438 0.722 0.449 0.184 0.140 0.102 0.467 0.646 0.728 0.816 0.939 0.203 0.631

DIV$ 0.170 1.260 0.000 0.260 0.000 0.020 0.000 0.720 0.220 0.120 0.000 0.434 0.060 0.328 0.240 0.540 0.200 0.120 0.610

P/E 14.9 18.7 N/M 18.1 N/M N/M -6.8 15.6 13.4 21.8 42.9 28.9 10.5 14.6 11.2 17.3 9.6 20.1 24.1

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

YIELD 4.79% 7.23% 0.00% 3.89% 0.00% 1.23% 0.00% 6.39% 3.67% 2.99% 0.00% 14.71% 1.22% 3.47% 2.94% 3.82% 2.23% 2.93% 4.01% 0.00% 0.00% 0.00% 0.00% 6.25% 7.00% 6.50%

INTEREST Prime + 1.75%

MATURITY 19-Oct-2022

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

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

YTD% 12 MTH% 0.37% 3.81% 0.24% 4.38% 0.23% 2.75% 5.76% 5.76% 12.81% 12.81% 0.94% 3.72% -3.46% 2.09% -0.11% 3.43% -3.33% 1.53% -0.32% 10.20% -1.58% 15.37% 0.88% 5.22% -4.91% 10.77% 1.89% 6.75% -1.95% 0.38% N/A N/A 10.80% 2.60% 10.40% -4.00%

NAV Date 31-Jan-2020 31-Jan-2020 31-Jan-2020 31-Dec-2019 31-Dec-2019 31-Mar-2020 31-Mar-2020 31-Mar-2020 31-Mar-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020 29-Feb-2020

MUTUAL FUNDS 52WK HI 2.30 4.38 2.09 195.13 166.73 1.67 1.85 1.76 1.24 8.34 10.26 7.00 12.15 12.58 10.81 10.00 8.98 11.79

52WK LOW 1.67 3.30 1.68 164.74 116.70 1.61 1.75 1.70 1.14 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20

FUND CFAL Bond Fund CFAL Balanced Fund CFAL Money Market Fund CFAL Global Bond Fund CFAL Global Equity Fund Leno Preferred Income Fund Leno Growth Fund Leno Diversified Fund Leno 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 Colonial Bahamas Fund Class D Colonial Bahamas Fund Class E Colonial Bahamas Fund Class F

NAV 2.30 4.38 2.09 195.13 166.73 1.67 1.79 1.75 1.16 8.31 10.07 7.00 11.42 12.58 10.52 N/A 8.98 11.40

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 | COLONIAL 242-502-7525 | LENO 242-396-3225 | BENCHMARK 242-326-7333

30-Sep-2019 30-Sep-2019 30-Sep-2019

on annual basis was able to consume five percent of the external reserves up to a maximum of $35m. Urging Bahamians and residents to focus on local opportunities, Mr Rolle said access to foreign exchange through these mechanisms will resume “once market uncertainties around the COVID-19 pandemic subside”. All approvals granted under both initiatives prior to May 1 will expire on June 30, 2020. He also justified the halt to exchange control approvals for foreign bank dividend repatriations by saying it has the “dual effect of keeping buffers in place for an expected increase in credit losses and halting remittances abroad”. “In keeping with the principle of viewing the National Insurance Board’s foreign investments as an extended support for the foreign reserves, the Central Bank has requested NIB to liquidate some of its external investments and to bring the proceeds back onshore,” Mr Rolle added. “Commercial banks have been given a more relaxed margin within which to sell foreign exchange to the public, before they are able to draw on the Central Bank’s foreign reserves to supply sales to the public.” NIB’s foreign currency investments, according to its last audited financial statements from 2016, amounted to more than $82m. The relaxed commercial bank margin, meanwhile, has increased the ceiling on “the Bahamian Open Position” for foreign exchange transactions to the maximum five percent of Tier 1 capital from “the more binding $5m limit on net long exposures”. And, indicating that the Central Bank will do whatever it takes to maintain the fixed US dollar exchange rate peg, Mr Rolle warned: “The Central Bank is prepared to take additional, broader measures if necessary, to conserve on foreign exchange, and would do so in the near-term rather than later if the outlook justifies this. If adopted, these measures would target domestic import capacity.... “The economy will operate within more binding foreign exchange constraints in the near-term. However, the tools at the Central Bank’s disposal can protect the foreign reserves, and prioritise access to foreign exchange. Indeed, the economy must maintain currency stability in the interim until the positive medium-term prospects are within reach.” He added that using monetary policy as an economic stimulus tool was “not an option for The Bahamas” as any reduction in interest rates or relaxation of credit policies would spark a surge in import demand and undermine the foreign

reserves at the worst possible time. Mr Rolle said the foreign reserves had remained at around $2bn through the end of March because the COVID-19 enforced lockdown had “suppressed a lot of spending in the economy. We do anticipate that as businesses start to operate and replenish inventory the reserves will begin to see some reduction. “There’s no immediate concern about the level of reserves,” he added. “That is qualified by saying we look at the reserves relative to the tools we have to manage foreign exchange. We’re confident The Bahamas has the array of tools needed to preserve the reserves at a comfortable level. “There should be no concern. But we should expect, if the protracted nature of the shutdown in the economy endures for very long, the measures will have to become more restrictive to keep the reserves at a comfortable level.” Mr Rolle said the foreign reserves remain at “healthy levels” despite concerns voiced by one of his predecessors as Central Bank governor, James Smith, that they have been artificially inflated by government borrowing - especially the $750m US dollar bond that was placed in November 2017. The present governor, though, said the Central Bank had seen “a lot of” cases where the government had been “too eager to repay foreign currency debt and it consumes reserves at an inordinate pace”. However, Mr Rolle said the government’s foreign currency borrowings were often too quickly interpreted as a move to boost the foreign currency reserves rather than the necessary rebalancing of its debt profile. “We focus more on the comprehensive debt management strategy of the government,” he explained. “What we have to understand in The Bahamas is that once a fiscal deficit is incurred, you have less freedom in how to finance it. “If you finance it in Bahamian dollars you lose reserves, and if you finance it in foreign currency, you’re essentially obtaining foreign exchange to support the expenditure you’ve incurred. “The first thing we should try to manage and minimise is the extent of the deficit. That’s not an option right now as the government needs to stabilise the economy. If you’re not managing the size and extent of the deficit, you have little freedom around what the next step looks like in an economy that’s dependent on foreign exchange to cover expenditure.”

Realtors: ‘No brainer’ over sector restart

obstacle facing their industry amid the COVID-19 lockdown and emergency powers is that they are unable to conduct property viewings with clients. While virtual tours can lure a buyer in, and help them understand what they might be purchasing, they still usually want to touch, feel and physically visit a potential acquisition before committing hundreds of thousands of dollars - and in some cases, millions - to purchase Bahamian real estate. With vendors told not to be present during a viewing in case it “sours a sale”, Mrs Wallace-Whitfield yesterday said the potential for COVID19 spread was further reduced as typically only the buyer and agent are present. She added that agents could inside a property to prepare it for viewing ten minutes beforehand and let the buyer subsequently go in alone, while the wearing of masks and social distancing would also help to curb the health risks. “We’ve got a few people inquiring about properties, saying when the borders open they’re interested in looking at ‘x’, ‘y’ and ‘z’,” Mrs WallaceWhitfield added. “But we still have a local market that’s interested. “In the beginning people were nervous. They did not want to do anything, but after a couple of weeks they said they need to start planning for the future, get back to this and see what they’re doing. Life goes on. They can’t keep sitting there.”

FROM PAGE ONE

purchasing. We are the third biggest revenue producer for the government and we need to keep it going. It’s very important.” Mrs Wallace-Whitfield said Dr Hubert Minnis replied to BREA’s letter, sent a week ago Friday, saying he would consult with his health officials and then get back in touch on what BREA was proposing. However, despite two text messages sent to the Prime Minister subsequently, no formal response has been received. “Real estate is really a no brainer,” the BREA chief added. “It’s not an industry where a bunch of individuals are needed to complete a transaction. It’s one-on-one. One agent, one prospect. Real estate should be essential. “We put in there that there will be no open houses or annual general meetings. Real estate, if you think about it, is really a one-on-one service industry. I commend the government for doing what they did and shutting things down to look after the betterment of the Bahamian people. Now that they’re opening up certain sectors of the economy, real estate is essential.” Realtors have told Tribune Business that the biggest

THE TRIBUNE

Tuesday, May 5, 2020, PAGE 11

THE WEATHER REPORT

5-Day Forecast

TODAY

ORLANDO

High: 92° F/33° C Low: 68° F/20° C

TAMPA

TONIGHT

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

Pleasant with plenty of sun

Mainly clear

A t‑shower in spots in the p.m.

Mostly sunny, breezy and pleasant

Some sun with a shower or t‑storm

Partly sunny

High: 86°

Low: 75°

High: 86° Low: 74°

High: 85° Low: 71°

High: 83° Low: 73°

High: 85° Low: 74°

AccuWeather RealFeel

97° F

81° F

97°-77° F

93°-70° F

88°-74° F

96°-74° F

High: 85° F/29° C Low: 71° F/22° C

almanac

ABACO

High: 82° F/28° C Low: 77° F/25° C

6‑12 knots

High: 89° F/32° C Low: 68° F/20° C

6‑12 knots

FT. LAUDERDALE

FREEPORT

High: 88° F/31° C Low: 71° F/22° C

WEST PALM BEACH

The higher the AccuWeather UV IndexTM number, the greater the need for eye and skin protection.

The exclusive AccuWeather RealFeel Temperature® is an index that combines the effects of temperature, wind, humidity, sunshine intensity, cloudiness, precipitation, pressure and elevation on the human body—everything that affects how warm or cold a person feels. Temperatures reflect the high and the low for the day.

High: 85° F/29° C Low: 76° F/24° C

uV inDex toDay

Statistics are for Nassau through 2 p.m. yesterday Temperature High ................................................... 81° F/27° C Low .................................................... 69° F/21° C Normal high ....................................... 83° F/28° C Normal low ........................................ 70° F/21° C Last year’s high ................................. 87° F/31° C Last year’s low ................................... 76° F/25° C Precipitation As of 2 p.m. yesterday ................................. 0.00” Year to date ................................................. 6.21” Normal year to date ..................................... 6.54”

tiDes For nassau High Today

MIAMI

High: 89° F/32° C Low: 73° F/23° C

KEY WEST

High: 84° F/29° C Low: 75° F/24° C

ELEUTHERA

NASSAU

High: 86° F/30° C Low: 75° F/24° C N

Wednesday 7:27 a.m. 7:58 p.m.

3.0 3.5

1:29 a.m. ‑0.6 1:40 p.m. ‑0.9

Thursday

8:19 a.m. 8:49 p.m.

2.9 3.6

2:23 a.m. ‑0.7 2:29 p.m. ‑0.9

Friday

9:10 a.m. 9:39 p.m.

2.8 3.5

3:16 a.m. ‑0.7 3:18 p.m. ‑0.9

Saturday

10:01 a.m. 10:30 p.m.

2.7 3.4

4:08 a.m. ‑0.7 4:07 p.m. ‑0.7

Sunday

10:53 a.m. 11:22 p.m.

2.5 3.2

5:01 a.m. ‑0.5 4:58 p.m. ‑0.5

Monday

11:47 a.m. ‑‑‑‑‑

2.3 ‑‑‑‑‑

5:54 a.m. ‑0.2 5:50 p.m. ‑0.2

sun anD moon Sunrise Sunset

High: 82° F/28° C Low: 77° F/25° C

W S

4‑8 knots

6:31 a.m. 7:42 p.m.

Moonrise Moonset

6:01 p.m. 5:19 a.m.

Full

Last

New

First

May 7

May 14

May 22

May 29

ANDROS

SAN SALVADOR

GREAT EXUMA

High: 82° F/28° C Low: 77° F/25° C

High: 83° F/28° C Low: 78° F/26° C

High: 85° F/29° C Low: 77° F/25° C

W S

LONG ISLAND

tracking map

High: 83° F/28° C Low: 78° F/26° C

Ht.(ft.)

12:32 a.m. ‑0.4 12:50 p.m. ‑0.7

CAT ISLAND

4‑8 knots

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

High: 82° F/28° C Low: 77° F/25° C

Low

2.9 3.3

2‑4 knots

Ht.(ft.)

6:34 a.m. 7:07 p.m.

4‑8 knots

MAYAGUANA High: 84° F/29° C Low: 78° F/26° C

Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.

CROOKED ISLAND / ACKLINS RAGGED ISLAND High: 82° F/28° C Low: 79° F/26° C

High: 83° F/28° C Low: 78° F/26° C

GREAT INAGUA High: 85° F/29° C Low: 79° F/26° C

8‑16 knots

marine Forecast ABACO ANDROS CAT ISLAND CROOKED ISLAND ELEUTHERA FREEPORT GREAT EXUMA GREAT INAGUA LONG ISLAND MAYAGUANA NASSAU RAGGED ISLAND SAN SALVADOR

Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday: Today: Wednesday:

WINDS S at 6‑12 Knots WSW at 8‑16 Knots SE at 4‑8 Knots SW at 4‑8 Knots ESE at 4‑8 Knots S at 7‑14 Knots ESE at 8‑16 Knots SE at 8‑16 Knots SE at 4‑8 Knots S at 7‑14 Knots SSW at 6‑12 Knots WSW at 7‑14 Knots SE at 4‑8 Knots S at 6‑12 Knots E at 8‑16 Knots SE at 7‑14 Knots E at 8‑16 Knots SE at 6‑12 Knots ESE at 7‑14 Knots SE at 8‑16 Knots SE at 6‑12 Knots SSW at 4‑8 Knots E at 8‑16 Knots SE at 7‑14 Knots SE at 4‑8 Knots S at 7‑14 Knots

WAVES 1‑3 Feet 2‑4 Feet 0‑1 Feet 1‑2 Feet 1‑3 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 1‑2 Feet 1‑3 Feet 0‑1 Feet 1‑2 Feet 2‑4 Feet 2‑4 Feet 1‑3 Feet 1‑3 Feet 2‑4 Feet 3‑5 Feet 0‑1 Feet 0‑1 Feet 1‑3 Feet 1‑3 Feet 1‑2 Feet 1‑2 Feet

To advertise ALL your LEGAL NOTICES, call The Tribune’s Sales Department

502-2394

VISIBILITY 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles 10 Miles

WATER TEMPS. 80° F 80° F 83° F 84° F 79° F 80° F 82° F 82° F 81° F 82° F 82° F 83° F 82° F 83° F 82° F 82° F 82° F 82° F 81° F 81° F 81° F 81° F 83° F 83° F 81° F 81° F