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MONDAY, AUGUST 28, 2023
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IDB warns Bahamas on rollover ‘difficulties’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Bahamas has been warned it may “face difficulties to roll over existing debt” in the medium-term if market conditions do not improve with almost $900m in external foreign currency loans coming due in the next two years. The Inter-American Development Bank (IDB), in its 2023 second quarter economic bulletin on the Caribbean, said “sound” debt management will be “key” for the Government over the next decade with at least $250m in foreign currency bonds held by external investors due to mature every year between 2026 and 2032. With “most” of the Government’s external bonds set to come due for repayment between now and 2032, including $550m in principal that matures in 2029, the IDB also warned that “external loans” extended by foreign creditors will create further debt management pressures for successive administrations.
t 4BZT N JO MPBOT EVF XJUIJO UXP ZFBST t #POET NBUVSJOH FWFSZ ZFBS GSPN t &YQMPJUJOH UPVSJTN CPPN JT AOPU FBTZ UBTL “Although no sovereign external bonds will mature before 2024, between 2026 and 2032 there are bonds maturing every year of at least $250m,” the IDB said. “Even though the country is not facing an immediate need to roll over external bonds, within ten years most of its bonds will mature and in 2029 alone the amount will reach $550m.
“Amortisation of external loans will also exert pressure, since within the next two fiscal years $899m will need to be repaid. Domestic debt is also elevated and, in fiscal year 2023-2024, securities amounting to $779m are maturing. If market conditions continue deteriorating in the medium term, The Bahamas could potentially face difficulties to roll over existing debt. For these reasons, a close monitoring of debt trends and sound public debt management will be key during this and the next couple of years.” The Government is keenly aware of such pressures. Simon Wilson, the Ministry of Finance’s financial secretary, could not be reached for comment before press time last night. However, he told Tribune Business in an August 2 interview that there are “no issues” over the Government’s ability to refinance some $3.466bn in combined Bahamian dollar and foreign currency debt maturing this fiscal year given its access to “credit lines”.
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Sands: It’s the wrong marijuana ‘gold mine’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Free National Movement’s (FNM) chairman says the Government has delayed the “potential gold mine” of industrial hemp to focus on legalising a medical marijuana industry that is “unlikely to be a big economic boon”. Dr Duane Sands told Tribune Business that “many ships have already sailed” when it comes to medical marijuana, and The Bahamas does not have the advantage of “being an early adopter” through the legislative reform package unveiled by the Davis administration last week.
DR DUANE SANDS Arguing that it will not be a major medical tourism driver, given that many such visitors can access the required marijuana derivatives far more cheaply and easily in their home jurisdictions, he added that
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Settle $29m Exuma cays dispute ‘once and for all’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE ownership of two disputed Exuma cays, valued at a collective $29m, must be settled “once and for all”, a Bahamian attorney is urging. Craig Butler, legal counsel to Samuel Burrows, who has launched a fresh bid to obtain a certificate of title to both Lumber Cay and Jim Cay via the Quieting Titles Act, and his attorney Andrew Allen, said both his clients were justified in their actions because the Chief Justice’s previous ruling never settled the ownership issue.
Rejecting assertions by a rival claimant that the latest Quieting Titles action amounts to a “mockery of justice”, he added that his clients will “seek to expedite” the Supreme Court’s investigation of who the cays’ true owner is so the “matter can be laid to rest”. Mr Butler, referring to Sir Ian Winder’s earlier verdict, told Tribune Business: “During the hearing by the Chief Justice, there were five points of declaratory relief sought on behalf of the Nixon family and the Chief Justice only decided on three.
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Raising ‘Freeport out of the ashes’ t -JDFOTFFT 8F NVTU AIBWF TBZ PO (#1" DIBOHFT By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Government and Grand Bahama Port Authority’s (GBPA) owners were yesterday warned the latter’s 3,000 licensees must “have a say” over any changes to its ownership and Freeport’s founding treaty. Kirk Antoni, the Cafferata & Company attorney and partner, told Tribune Business the approval of 80 percent of licensees is required to both amend the Hawksbill Creek Agreement, which has full legal and statutory effect, and/ or devolve the GBPA’s quasi-governmental and regulatory powers to a condo-type association. His remarks came as the GBPA’s licensees seek to mobilise, and ensure they are not neglected in the battle for Freeport’s future, while also intervening in the Government’s increasingly acrimonious dispute
with the city’s quasi-governmental authority and its owners, the Hayward and St George families. Mr Antoni, a prominent member of the 25-30 strong licensee body that previously issued a public letter to both Prime Minister Philip Davis KC and the GBPA’s owners over the impasse, told this newspaper the latter had agreed to meet with the group on September 6 while no response has yet been received from the Government. And, in an effort to “swiftly” expand the group’s base, the Cafferata & Co partner said it is inviting all 3,000 licensees to another meeting later in September to advise them of the Hawksbill Creek Agreement’s benefits to their businesses and the rights it confers upon them. A 60-year Freeport resident, Mr Antoni said his sole goal is “to bring Freeport out of the ashes”. He
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