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TUESDAY, AUGUST 22, 2023
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IMF: Bahamians need more protection from bank failure By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
IMF HEADQUARTERS
BAHAMIAN depositors have inadequate protection against “the failure of the largest credit union or any medium-sized bank”, the IMF is warning, as it urged that coverage more than double in percentage terms to $120m. The International Monetary Fund (IMF), in a report on the measures The Bahamas should implement to prevent and respond
to financial institution collapse, described strengthening the Deposit Insurance Corporation - the entity that fully insures deposits up to a maximum $50,000 in the event of bank or credit union failure - as “a high priority task despite the current financial system soundness”. Pointing out that the Corporation’s fund, from which payouts would be made, is “low”, the IMF argued in a paper released yesterday that “reforms are needed in a variety of areas” including its
governance through an increase in the number of external directors compared to Central Bank, Ministry of Finance and other public sector insiders. It also identified the Bahamian cooperatives sector as an area of “some distress” and financial weakness. The Washington D.C.-based Fund added that the Deposit Insurance Corporation’s 20-day payout target was more than double the international goal of seven days,
Royal Caribbean: Don’t hold us to higher standard than Atlantis By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net ROYAL Caribbean asserts it would be “highly inappropriate” to hold it to a higher standard than Atlantis and other developers with its Bahamian head optimistic there will be no “conflict” with the Paradise Island mega resort. Philip Simon, the Royal Beach Club’s president and general manager for the cruise line’s Bahamas operations, told Tribune Business that “fostering an atmosphere of collaboration” on Paradise Island will “bode very well for the future” and enable all developers to focus on enhancing the visitor product for their own economic benefit. His comments came after Vaughn Roberts, Atlantis’ senior vice-president
PHILIP SIMON
VAUGHN ROBERTS
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Environmental Impact Assessment (EIA) that “it’s disappointing” Royal Caribbean did not also release the Environmental
Management Plan (EMP) as part of the same process. “As a potential neighbour, you should understand our concerns about the project and why it’s disappointing that you cannot share your Environmental Management Plan (EMP) with us as part of the public consultation process so we can review and ask you informed questions about it. What level of detail can we expect in the plan?” Mr Roberts wrote on Atlantis’ behalf. Royal Caribbean, in response, promised that the EMP will be released publicly in accordance with Bahamian environmental laws and procedures. Its answer implied that Atlantis was seeking to hold it to a higher standard than those the meg resort and other Bahamas-based
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‘Flabbergasted’ at Royal Caribbean’s PI approval By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net A BAHAMIAN environmental advocate yesterday said she was “flabbergasted” that Royal Caribbean’s Paradise Island project has been given the go-ahead, adding: “I don’t understand how
they think they’re going to pull it off.” Gail Woon, founder of Earthcare, who submitted multiple questions to the Royal Beach Club’s Environmental Impact Assessment (EIA) consultation, told Tribune Business that nothing which emerged from the process changed her opinion that the 17-acre site is
too small for the average 2,750 passengers it will accommodate per day. Arguing that “you don’t have to be a rocket scientist” to arrive at such a conclusion, she added that she was “insulted” to learn the Department of Environmental Planning and Protection (DEPP) had given its approval from Royal Caribbean
rather than the agency itself or another part of the Government. Ms Woon suggested that permission for the cruise giant to proceed was always likely given the Government’s early 2023 announcement that it had given the $100m Royal Beach Club approval in principle, subject to
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DPM targeting ‘best year in Bahamas history’ on tourism By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE DEPUTY prime minister yesterday predicted that “barring an act of God” this nation can look forward to the “best year ever in the history of The Bahamas” with tourist arrivals 30 percent up on pre-COVID highs. Chester Cooper, also minister of tourism, investments and aviation, reiterated his
expectation for record tourism arrivals numbers at the Caribbean Investment Forum 2023’s launch. He added that the increase in airlift to The Bahamas has contributed to the “phenomenal growth” that has seen visitor arrivals for 2023 year-to-date exceed 2019’s comparatives by 30 percent. “We are seeing phenomenal growth in tourism, supported by our aviation partners,” Mr Cooper added. “So we talked
about Jet Blue direct from LA, we talked about direct flights from Seattle and LA on Alaska Airlines. American Airlines announced recently some phenomenal changes, additional flights; daily service from from Dallas, daily service from from Charlotte to many of the Family Islands including Abaco, Exuma, Eleuthera. “Today we are seeing announcements from Delta with direct service from Florida to Nassau, daily
direct non-stop service from Atlanta to Nassau. This is phenomenal. I invite the stakeholders to brace themselves. It’s good now and it’s getting better. We’re seeing a 30 percent arrivals number ahead of where we were in 2019. “2019, I remind you, was a record-setting year, so barring an act of God we’re going to break the eight million visitor arrival mark. And we anticipate
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Central Bank advancing financial crisis ‘playbook’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank’s governor yesterday asserted The Bahamas “is advancing efforts” to guard against a domestic financial crisis with the authority set to oversee these efforts potentially formed “within the next six months”. John Rolle, speaking to Tribune Business after the International Monetary Fund (IMF) released recommendations for strengthening the financial system and its institutions against potential collapse, said “a lot of the groundwork” has been done to create the Financial Stability Council that will drive implementation of these and other measures. Explaining that the initiative aims to prepare the Bahamian financial sector and its participants “ahead of time”, so they know how to manage a crisis and avert possible failure, he added that individual institutions will also have “to develop a playbook” for when they themselves “come under strain” to facilitate recovery
JOHN ROLLE and prevent a wider systemic shock. “The Financial Stability Council is one of the inter-agency co-ordinating mechanisms that’s recommended,” Mr Rolle told this newspaper. “We’ve done a lot of the groundwork and had discussions between the relevant regulators and Ministry of Finance. Those discussions are ongoing in terms of how we operationalise such a framework. “A lot of the sketching of the framework is complete, and we think it could happen within the next six months or so. Possibly before that. Certainly we have already had
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