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TUESDAY, NOVEMBER 5, 2019
$4.52 Central Bank eyes ‘movable collateral registry’ initiative By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net THE Central Bank is set to study the feasibility of creating “a registry to track movable chattel pledged by borrowers”, such as vehicles, in a bid to improve credit access for deserving borrowers. John Rolle, the Central Bank’s governor, yesterday confirmed the regulator had been asked to investigate this by the Ministry of Finance as a means to improve the information available to commercial banks and other lenders when assessing the creditworthiness of loan applicants. “What’s important when we talk about access to credit, so that there are no misconceptions, is the need more legal reforms in the country so the information system lenders rely on improves,” he said. “The credit bureau is one of them. The Central Bank has also been asked by the Ministry of Finance to put in place a registry to track movable collateral pledged by borrowers - automobiles and other items used to secure debt.” He added that such a registry could also be used to “create information and monitor what happens with legal judgments awarded, and claims made against legal assets. That part of the information system needs to be improved”. Mr Rolle said he was unable to provide “a timeline” for when such a registry will be implemented, but added that technology advances had potentially enabled its creation so that banks and other lenders will be better able to perfect and oversee loan security/collateral and avoid competing claims to the same asset. “We are going to study how it could be done,” he explained. “With the infrastructure improvements the possibility came to mind. We’re going to look in detail at what possibilities exist. At some level it may require some legal reforms.” Bahamian commercial banks and other lenders currently lack complete information on the credit history of many potential borrowers, which makes it impossible to properly assess the risk they pose and price the loan (interest rate) accordingly. And, as a result, delinquent borrowers are able to bounce from institution to
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Central Bank: Dorian inflicts a $2.5bn blow By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
T
HE Central Bank’s governor yesterday forecast that total Hurricane Dorian losses could exceed $2.5bn at the “low end” - a sum equivalent to 20 percent of The Bahamas’ total economic output. John Rolle, unveiling the regulator’s September and third quarter economic outlook, said these projections were “not out of range” given the category five storm’s devastating impact on private housing, public utilities and infrastructure in Abaco and Grand Bahama. He warned that a significant “financial resources gap” could develop, despite the Bahamian insurance industry revealing to Tribune Business that insured losses had already surpassed $1bn, due to numerous impacted families and businesses either being totally uninsured or under-insured. While Mr Rolle did not suggest this “gap” could amount to $1.5bn,
• Storm losses ‘could surpass 20% of GDP’ • Bad bank loans to rise to ten-12% of total • But ‘nothing to flinch’ from, says governor
JOHN ROLLE the difference between the Central Bank’s projected total Dorian losses and insurance payouts, he added that those lacking insurance “could face a lengthy recovery process” through having to rely on either their own savings or financial assistance from the government and others to rebuild. The Central Bank governor also predicted that the commercial banking industry’s non-performing loan ratio will rise by several percentage points to hit the ten to 12 percent range
in Dorian’s aftermath, as impacted households and businesses struggled to service their debt obligations in the absence of incomes and commercial activity. He added, though, that such a raised non-performing loan ratio was “not anything to flinch about” for the Central Bank. Mr Rolle said Grand Bahama and Abaco combine for just 14 percent of outstanding commercial bank credit to the private sector, with the latter - the worst-hit island of the two - accounting for just five percent. While this will help impose “some upper limits” on the non-performing loan increase that Bahamian commercial banks are likely to suffer, the Central Bank governor conceded that it was “breathing a sigh of relief in terms of what was the outcome” compared to the scenario if Dorian had made a direct hit on New Providence where most of the country’s
AN EX-Central Bank governor yesterday said the proposed acquisition of CIBC FirstCaribbean could be positive for the Bahamian economy if it “breaks up the cartel” in the banking industry. James Smith, pictured, told Tribune Business that the Colombia-based Gilinski Group could give The Bahamas a much-needed “shot in the arm” post-Hurricane Dorian if it created more competition in the commercial banking industry by “challenging the oligopoly” that presently exists. Conceding that there were “more questions than answers” over the proposed sale of CIBC’s regional Caribbean business, including its Bahamas operations, Mr Smith argued that
economy is concentrated. Still, Mr Rolle’s estimates give a further insight into the scale of the damage inflicted upon the Bahamian economy and society by Dorian, and demonstrate how long, expensive and complex the recovery and restoration process will be. “Even as revised projections indicate that insurance payouts to the private sector could exceed $1bn, the losses - most to private sector assets - could surpass 20 percent of GDP or more than $2.5bn,” he warned. While “key commercial assets” are expected to recover faster than Abaco and Grand Bahama’s housing stock, the Central Bank governor said the process was likely to be uneven because a significant number of storm victims lacked adequate insurance coverage. “There is nevertheless a financial resources gap,
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6,000 restructure debt during 2019 first half By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net MORE than 6,000 Bahamian borrowers applied for debt consolidation loans during the 2019 first half, making it the most soughtafter form of consumer credit by some distance. The Central Bank’s latest Lending Conditions Survey, released yesterday, revealed that debt consolidation loans accounted for more than one-third of all consumer loan applications during the six months to end-June 2019. The volume of applications was also 50 percent greater than the next mostpopular form of consumer loans, namely credit cards, for which Bahamian commercial banks received around 4,000 applications during the 2019 first half. Travel loans, for which there were almost 3,000 applications, ranked third by loan type.
• Consolidation loans most popular consumer form • Consumer credit accounts for 91% of applications • But just 53% of mortgage loan requests backed The Central Bank data further exposes the breadth and depth of the pressures faced by financially-struggling Bahamian households, individuals and businesses, as debt consolidation loans are typically a last resort move to rescue troubled borrowers by combining all their outstanding loans into one to reduce the debt repayment burden. It also highlights how the risk averse Bahamian commercial banking industry continues to concentrate its lending efforts on loans for cars, furniture and appliances, and the luxury “bells and whistles” of life something that threatens to deprive the economy’s productive elements, namely the housing market (mortgages) and private sector
(businesses) of muchneeded financing capital. The Central Bank survey revealed that out of 19,712 loan applications processed during the 2019 first half, some 91 percent - more than nine out of ten, or just under 18,000 - related to consumer loans. The commercial banking industry, badly hit by the housing market crash following the 2008-2009 recession, now views consumer loans as less risky because they can be secured by salary deduction. While the total number of loans processed represented a 17 percent increase compared to the 2018 first half, the Central Bank said: “Consumer loan applications dominated at 91 percent of total requests;
CIBC deal positive if ‘breaks up the cartel’ By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
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• Ex-governor: More competition to break ‘oligopoly’ • Urges same offer made to Bahamian minority • DPM confirms ‘introduction’ to purchaser
the Gilinski Group should also make the same buyout offer to the Bahamian minority shareholders as it has given to the Canadian banking giant. The region-wide CIBC FirstCaribbean acquisition thus seems likely to provide the first test for The
Bahamas’ Securities Industry (Takeover) Rules 2019, which came into effect on April 17, 2019, when they were published in the official Government Gazette. These reforms were passed as part of a much-touted package of legislation designed to better protect and safeguard minority shareholder rights - a move that secured a significant improvement in this area in the World Bank’s recent “ease of doing business” rankings. CIBC FirstCaribbean International Bank (Bahamas), which is the largest listed stock on the Bahamas International Securities Exchange (BISX) by market capitalisation,
is less than five percent owned by Bahamian minority investors. It is also likely to be the largest and most profitable unit in the group alongside Barbados, accounting for 30-40 percent of its overall business. Given that the 95 percentplus majority shareholder, CIBC FirstCaribbean’s Barbados parent, is seemingly set to undergo an imminent ownership change, this appears likely to trigger the Takeover Rules that require the buyer to offer the same price, and terms and conditions, to the minority shareholders as were offered to the vendor (CIBC).
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84 percent were approved. Most loan denials were due to high debt service ratios, lack of collateral or no down payment.” However, just 53 percent of mortgage applications were approved to further illustrate the ongoing difficulties many Bahamians have in meeting the banks’ more stringent qualifying requirements to enter the housing market. “Mortgage applications rose in comparison to 2018; 53 percent of requests were approved,” the Central Bank added. “Most applications were for purchases of already built homes... but growth in financing requests for new construction mortgages was also noted.
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$4.56 ‘Totalled’ Abaco resort awaiting summer re-open By YOURI KEMP AN ABACO resort operator yesterday said her property is unlikely to re-open until summer 2020 after it was “totalled” by Hurricane Dorian with “nothing left of the marina”. Molly McIntosh, general manager of the Bluff House Beach Resort & Marina on Green Turtle Cay, said the absence of utilities and a workforce to assist with clean-up, repairs and restoration were among the major challenges faced by those seeking to rebuild. “We got totalled,” she told Tribune Business. “There is nothing left of the marina. The rooms had a lot of water damage. There are a few challenges there is a problem in hiring people. There is no one to hire to do work at this time. “I have four guys now that I have re-hired to help with clean-up. There are huge trees and metal roofs and other debris littering the beach. They are cleaning up by hand but have made a lot of headway. The insurance company has not settled with us as yet. My owner does not know how to plan because he does not know how much to expect from the insurance company.” Ms McIntosh then added: “The dump is burning and blowing right into my house. The stench is horrible. That’s the problem with burning all of that treated wood; they have a lot of chemicals in them and it makes a lot of toxic smell. “The prime minister said that barge for the dump would be brought to the island the evening he came to speak to us at the Town Hall meeting. But we have not seen the barge yet and nothing else is being said about it.” Dr Hubert A Minnis reaffirmed that the Abaco Cays would be provided with support for debris clearance and barge export at a press conference on post-Dorian clean up efforts held at the weekend. However, Ms McIntosh said: “We don’t have electricity now. The generators we have running now are very expensive to run. Bahamas Power & Light are working slowly but surely from what I see. “Some also have water in some places in town from what I have been told. I have not had water since before the storm. This makes it challenging to get work done. There is a
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PAGE 2, Tuesday, November 5, 2019
Bahamas ‘on it’ during world’s top boat show By YOURI KEMP
MARINA operators yesterday said The Bahamas “was on it” at the world’s largest boat show in a bid to lure more yachting business and aid post-Dorian recovery efforts. Joe Dargavage, vice-president of the Bahamas Marinas Association (BMA), and owner of Romora Bay Resort and Marina, said the private sector joined with Ministry of Tourism representatives to tell attendees at the 60th annual Fort Lauderdale Boat Show that most of this nation remains open for boating and yachting business. “The media got the message out that there was a lot of damage in The Bahamas,” he told Tribune Business. “But, at the same time, many people around the world thought that the entire Bahamas was destroyed. “And so we have to get the message out that that’s not true. We need people to continue to come to The Bahamas. With them coming, that helps with relief efforts because that is money coming to The Bahamas.” Mr Dargavage said senior Association executives and Dionisio D’Aguilar, minister of tourism, met with yachting professionals and companies that did business in The Bahamas, such as Freeport-based Bradford Marine, along with industry associations. “The single biggest day for the week in the fiveday show was on Friday,” he recalled. “The Bahamas was on it at the boat show as Peter Maury, president of the BMA, along with
THE TRIBUNE
BAHA MAR BANKRUPTCY JUDGE TO LEAD SEMINAR
BAHAMIAN officials at the 60th annual Fort Lauderdale International Boat Show. From left: Greg Rolle, senior director of vertical markets in the Ministry of Tourism and Aviation; Linda Treco-Mackey, Bahamas consulate general; Carla Stuart, senior director of cruise and maritime in the Ministry of Tourism; Joe Dargavage, vice-president of Bahamas Marinas Association; Bridgette King, executive director of sales and marketing in the Ministry of Tourism; Kerry Fountain, Bahamas Out Island Promotion Board executive director; Terry Archer, deputy chief of protocol at The Bahamas Consulate General. Photo: Kendea Smith minister for tourism, Dioni- and Grand Bahama, but they provide an opportunity sio D’Aguilar, and myself the bottom 90 percent of to be more personal with were all over the place. The Bahamas was perfectly people in this industry.” “Maury and I took fine. We knew leading up The Ministry of Tourism Mr D’Aguilar on a tour of to the boat show with all of added: “The message that the entire boat show. We the hotels and partners that The Bahamas is open for had sit down meetings with this would be the single big- business was well received yachting professionals and gest boat show we have ever by many, who expressed a owners of big companies that done. keen interest in participating do business in The Bahamas, “It so happens that the in familiarisation trips to The including Bradford Marine Ministry of Tourism had Bahamas. Christina Norris of of Fort Lauderdale and Free- designed a new booth, and Oversee Yachts was one of port; National Marine based all of our industry partners them.” out of Fort Lauderdale; the got to spend time in the Ms Norris said: “I am a US Super-Yacht Association; booth. Marina dock masters designer of yachts and many and the International Yacht from around The Bahamas of my clients would love to Brokers Association. We also came to the show to come and visit. Ninety perhad a meet with all of these work in the booth.” cent of my clients always organisations to talk about The Ministry of Tourism have The Bahamas as a destipublic-private partnerships and Aviation in a statement nation that they want to visit. with the Government. that yacht charter opera- I absolutely want to visit in a “We were able to speak tors, brokers and owners familiarisation trip because if in front of many groups of were presented with mul- you are excited about a place people at the boat show in tiple options for cruising in then you can get your clients front of hundreds of people The Bahamas. Branded the excited to go as well.” interested in The Baha- “greatest boat show on The Ministry of Tourism mas. People come from all the seven seas”, the Fort added that Rebecca Riley of over the world. This is the Lauderdale InternaParadise Yachts has a yacht world’s largest boat show. tional Boat Show attracts that will be chartered to The This is also the 60th anni- around 110,000 attendees versary of the boat show. It and 1,200 exhibitors repre- Bahamas in a few weeks. Ms Riley said: “We have been to was also a great chance for senting 52 countries. the people to say thank you Carla Stuart, the Minis- The Bahamas many times. for their [Dorian] donations, try’s senior director of cruise The interest is still very high and thank you for continuing and maritime, said: “It is in The Bahamas and we are to give to the relief efforts.” important for us to take happy that the message is Mr Dargavage continued: advantage of opportunities being sent that The Bahamas “After Hurricane Dorian to meet one-on-one with is still alive.” In addition, president of the Ministry of Tourism, as influencers in this industry. well as the Bahamas Mari- We have to be able to pre- the International Supernas Association, set forth sent to the respective groups yacht Society, AJ Anderson, immediately that the major- and entertain any questions said: “I know a lot about The ity of The Bahamas was not that they may have, so that Bahamas because I grew up touched. We were all very we can see how much more as a captain there. I recominvolved. we can help them and really mended The Bahamas many “We got the message out spread the message that times before but, after the 24 hours after Hurricane The Bahamas is the place presentations, I am even Dorian had passed that the that you want to bring your more inclined to send as hurricane was very pin- yacht. These meetings are many yacht owners as I can pointed only on Abaco extremely important because to this beautiful country.”
ZELMA WILSON
IGAL WIZMAN
SOPHIA KAPOUSOUZOGLOU
BAHAMIAN insolvency professionals are teaming with an international association to finalise plans for a one-day seminar to be held at the Baha Mar Convention Centre next month. The International Association of Restructuring, Insolvency and Bankruptcy Professionals (INSOL International) is partnering with the Restructuring and Insolvency Specialists Association Bahamas (RISA Bahamas) for the seminar that will be held on December 5, 2019. This will be the first event hosted by INSOL International in The Bahamas, and current seminar registrants include delegates from INSOL member associations in The Bahamas, Cayman Islands, Bermuda and British Virgin Islands (BVI), as well as from the US, UK and Canada. Accountants, attorneys, corporate services professionals and insolvency practitioners are among those attending. The keynote speaker for the event is Judge Kevin Carey of the US Bankruptcy Court in Delaware, who will address the crossborder cases he has dealt with during his tenure - including the infamous Baha Mar Chapter 11 bankruptcy protection filing.
Additional speakers and facilitators include the Brian Moree QC, Chief Justice of The Bahamas; Justice Ian Winder, Supreme Court of The Bahamas; Justice Indra H Charles, Supreme Court of The Bahamas; Justice K Neville Adderley, commercial division, of the Eastern Caribbean Supreme Court; and Justice Robin McMillan from the Cayman Islands Grand Court. Other presenters come from the so-called “big four” accounting firms - Deloitte & Touche, EY (Ernst & Young), KPMG and PricewaterhouseCoopers (PwC). Platinum sponsors include EY, PwC, Lennox Paton and McKinney, Bancroft & Hughes. The gold sponsors are Higgs & Johnson, Graham Thompson and Deloitte & Touche. RISA Bahamas is a professional body for those practicing restructuring and insolvency. Its directors are Zelma Wilson, Sophia Rolle-Kapousouzoglou and Igal Wizman (all pictured), and a key focus is professional education and training. RISA Bahamas is also a professional industry association of the Bahamas Financial Services Board (BFSB) as well as an INSOL member association.
THE TRIBUNE
Tuesday, November 5, 2019, PAGE 3
EX-MINISTER IS NAMED TO HEAD STERLING UNIT STERLING Global Financial has named former Bahamas Chamber of Commerce president, Khaalis Rolle, as head of its recentlylaunched Sterling Advisory Services division. The unit was created earlier this year to handle planning, property management, marina management, leasing and interactions with the government as Sterling began its $300m redevelopment of Paradise Island’s Hurricane Hole property. “From the first time I met Khaalis 15 years ago I was impressed by his leadership ability, work ethic and perspective,” said David Kosoy, the Sterling Group of Companies’ chairman. “He has a remarkable way of combining vision with a willingness to work hard to make it a reality. We are delighted to have such young and outstanding talent as a key member of our executive team and, more importantly, such a tremendous human being.” Mr Rolle, 46, holds a holds a BSc degree and honorary doctorate from Grambling State University, plus an MBA and certificate in management studies from the University of Miami. He also possesses a certificate in trade policy negotiations from the University of the West Indies. Mr Rolle began his career with ExxonMobil, then helped to launch and grow Bahamas Ferries and operated marine tour businesses. During his tenure as minister of state for investments from 20122017, he was involved wih approving more than $5bn in foreign direct investment, buoying the Bahamian economy and helping to provide thousands of jobs. Mr Rolle joined Sterling Global Financial in 2017 and, when Sterling completed the purchase of the near-16 acre of Hurricane Hole site the following year, he assumed an executive
Employers have ‘nothing to fear’ on union merger By YOURI KEMP
KHAALIS ROLLE leadership role for the project along with other pending resort developments the company was eyeing. The five-year mixed use Hurricane Hole redevelopment is the first new major investment on Paradise Island for some time. It is expected to generate some 600 construction jobs and, when completed, will feature retail, dining, professional office space and luxury residential units, along with a completely renovated marina capable of handling the world’s largest mega-yachts. In addition to the Hurricane Hole redevelopment and international funding, Sterling’s current projects in The Bahamas include a partnership with the THIRTY SIX high-end residential project on Paradise Island, Ocean Terraces on West Bay Street and other investments on Abaco and Eleuthera. “Khaalis has been instrumental in the growth we’ve experienced at Sterling. Having Khaalis manage our advisory and service business will ensure that we continue to provide a Sterling level of service to our partners and customers,” said Steve Tiller, Sterling’s president and chief executive. Sterling has more than $10bn in assets under administration, adding private banking to its services portfolio and construction management to its performance. The company employs about 150 persons, and its job sites now have more than 500 workers.
TOP government labour officials yesterday backed the proposed merger of the two trade union umbrella organisations as an overdue “step in the right direction”, and said employers have “nothing to fear”. John Pinder, director of labour, told Tribune Business of the tie-up between the Trades Union Congress (TUC) and the National Congress of Trade Unions Bahamas (NCTUB): “This is something that we are supportive of. We thought it would be wise for one union body to speak with one voice. “We had several talks going on over the last several years, going back to when I was president of the public service union. I think this is a step in the right direction for unions to show unity. In my capacity as acting director I have to be impartial to all sides. Employers have always been challenging union rights. But there are always two sides of the story. If the employer is negotiating with the union they are always looking at the cost factor.” Mr Pinder added: “So as far as I am concerned there are always claims of workers’ rights being challenged. But labour rights are laid down in the Industrial Relations Act, and if someone is aggrieved there are mechanisms to deal with the matter at the Industrial Tribunal and, if need be, in the courts. “Because of the economic situation in the country at this time after Hurricane Dorian, the government as the major employer may find itself in a position that it cannot live up to expectations. But they have to make sure the workers in the public sector are
JOHN PINDER
ROBERT FARQUHARSON adequately compensated. “The government, or the employer, has to also look at their budget and see what can they afford. We need to reach a point in our country for the employer to put aside an extra amount of money for their worker to include things like bonuses and whatever else may come up as a result of work friction. Let the union be more included in how they feel the set-aside money should be set up to suit their challenges and needs.” Robert Farquharson, chairman of the National Tripartite Council, which deals with all labour and workplace-related matters, said of the proposed merger: “I think it is an excellent idea, and it is long overdue. “From the employers’ side there has already been the unification of the Chamber of Commerce and
the Employers’ Confederation to form the Bahamas Chamber of Commerce and Employers’ Confederation (BCCEC). As chairman of the Tripartite Council I think it will only do well for a stable industrial relations climate in the Bahamas. There is nothing to fear.” Responding to concerns that workers’ rights and benefits are being challenged more frequently, Mr Farquharson added: “That’s how workers feel. So the workers feel that things that were normally accepted in normal relations are now being challenged. “It takes longer for disputes to be resolved, and that is why the National Tripartite Council has been keen on submitting proposals on legislative changes to ensure a smoother road for labour relations in The Bahamas.” Peter Goudie, the
Tripartite Council’s deputy chairman and a chamber director, told Tribune Business: “I think in the long run it will be a positive development for the unions and the workers. I am a little concerned [about] who made the announcement on this, however. “From what I understand, Obie Ferguson is the president of the TUC and Bernard Evans is the president of the NCTUB. I was shocked that Paul Maynard was the one that initially made the announcement.” He added: “Each union has their own power base, and they have not been willing to give it up for years. I can tell you that on Thursday we have our National Tripartite Council meeting where I will find out more about what is being proposed by the two unions. I am the deputy chairman of the council and the chairman is Robert Farquharson. “We have an equal number of representatives representing the three social partners - the workers, government and the employers. Anything to do with labour matters or workers has to come to us before it goes anywhere else. So we have a very good handle on what happens with labour and employers in The Bahamas. For example, we have workshops and a lot of training events for labour.”
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PAGE 4, Tuesday, November 5, 2019
THE TRIBUNE
WATER CORP UNIONS IN INDUSTRIAL DEALS PUSH By YOURI KEMP
BOTH Water & Sewerage Corporation trade unions are pushing for a
swift resolution to what they allege are protracted industrial agreement negotiations with management. Ednol Rolle, president of
the Water & Sewerage Management Union (WSMU), told Tribune Business: “There has been no movement on either side with regard to the settlement of our industrial agreement. We are trying to sign off on an agreement that is already expired. All it requires is for the government to sign off on it. The agreement is almost the same as it was in 2013. There is nothing new.” Explaining why he felt the new agreement has been delayed, Mr Rolle suggested said that the government wanted Article 29. This clause, which deals with outsourcing opportunities, sparked a long-running legal battle between the Water & Sewerage Corporation management union that has just ended in the Supreme Court. While Justice Ian Winder rejected the union’s bid for almost $5m in damages, he did award it a “nominal” $15,000 sum on the basis that the corporation had breached the outsourcing clause in the industrial agreement. The violation was confirmed by a previous ruling from then-acting justice, Brian Moree QC, who ruled in early January 2016 that the corporation had
breached the two sides’ industrial agreement over reverse osmosis plant contracts for Mayaguana and Long Island. The contracts involved the construction and maintenance of of two 20,000 gallon per day reverse osmosis plants in Mayaguana to serve the communities of Abraham’s Bay, Betsy Bay and Pirate’s Well. And a similar 20,000 gallon per day reverse osmosis plant for Simms, Long Island, was part of the same tender. Then-acting justice Moree found that the Corporation breached article 29 of the industrial agreement, which covers outsourcing, by failing to inform the union of these contract opportunities prior to awarding the deal to Watermakers/Staniel Cay. He added that the individual contracts of union members were also violated as a result. The industrial agreement’s Article 29 stipulates that the corporation consult the union on all forthcoming outsourcing opportunities “at least 90 days” before they happen. Should union members, who are “existing employees” of the corporation,
decide to bid, they have a “90-day exclusivity” from the time they are informed of the opportunity. This shuts out all rival bidders. And only members of the management union, or Bahamas-domiciled companies where they hold a “minimum” 70 percent equity interest, will be allowed to bid during the exclusivity period. Obie Ferguson, the attorney and lead negotiator for the management union, expressed hope that Justice Winder’s ruling on damages will pave the way for the industrial agreement to be concluded. He said: “We made contact with the director of labour, and we asked the director to initiate the industrial agreement as a result of the ruling of the Supreme Court handed down by Justice Ian Winder on September 11, 2019. “Now that the matter has been disposed of by the Supreme Court we hope the process used to settle the Morton Salt dispute can be used in the [management union] dispute. Now that the court has cleared the way, and that the court has made a determination, we are saying that there is no logical reason
why the corporation can’t execute the industrial agreement they have already agreed with the WSMU.” Tribune Business also spoke to Dwayne Woods, president of the Bahamas Utility, Services and Allied Workers Union (BUSAWU), about its ongoing negotiations with the corporation on behalf of its line staff members. He said: “We have submitted a proposal to the Water and Sewerage Corporation as of May 22. We are awaiting a counter-proposal from the Corporation as of October 15. Since then the chairman of Water & Sewerage met with the union and asked for an extension to be extended between the second and tenth of November. “The union has granted that extension based on the passing of Hurricane Dorian. We will wait until November 10 for a counter-proposal to begin negotiations in earnest and we look forward to industrial goodwill.” Despite repeated efforts, Tribune Business was unable to obtain comment from Water & Sewerage’s executive chairman, Adrian Gibson, before press time.
Central Bank: Dorian inflicts a $2.5bn blow
questioning from Tribune Business, he added that a sum equivalent to 20 percent of The Bahamas’ annual gross domestic product (GDP) was justified given the impacted islands’ contribution to the country’s economic output. “This is just a rough estimate if you’re looking at what GDP is for The Bahamas,” he explained. “The majority of the damage is expected to be property damage, government buildings and income lost during the period the country was out of service. “It’s really housing stock, utility infrastructure and loss of business premises and inventory. That’s collectively where the majority of the loss has occurred. On that basis, 20 percent of GDP is $2.5bn. We’re working with 20 percent of GDP as the original estimate of damage. “The $2.5bn estimate gives you the lower end of what these total damages will be assessed at. I’ve seen estimates which have much higher physical damages. We know that 20 percent of GDP is not a figure that is out of range.” Mr Rolle, meanwhile, said commercial bank balance sheets were “in a comfortable state to withstand credit stresses from Abaco and Grand Bahama” due to their relatively limited exposure on these islands, with most of their lending portfolios concentrated on New Providence.
Revealing that there are “no concerns” in this area, the Central Bank governor conceded that the sector’s non-performing loan ratio - credit upon which no repayment has been made for 90 days or more - would still be pushed back into the double digits due to Dorian. “We do not expect, when you look at the national exposure, that the impact will rise to unmanageable levels,” Mr Rolle said. “We expect some issues. Collectively, Abaco and Grand Bahama represent 14 percent of banks’ credit exposure. “Abaco by itself is less than five percent of the total credit outstanding to the Bahamian market, and has the more protracted expectation for the recovery process. From that point of view it puts some upper limits on the deterioration in the nonperforming loan situation that the to see.” Mr Rolle said slippage in what had been sustained improvement in bank credit quality, with the ratio of nonperforming loans falling to its lowest level for a decade since the 2008-2009 recession pre-Dorian, was inevitable given that the industry was “working with customers to get them back on their feet”. Besides offering a sixmonth moratorium on loan repayments to clients in Dorian-impacted communities, banks are also being more flexible on down payment requirements and debt service ratios when it comes
to extending loans to facilitate storm recovery. “All that helps banks in the medium term to manage their credit quality and exposure. It gives them time for economic activity to return,” Mr Rolle explained. “Right now the nonperforming loan ratio, the aggregate, is close to nine percent. If it goes up by a percentage point or two points to the ten to 12 percent range that’s not anything to flinch about as we see it as a temporary response to the storm. “We see it in the low teens; maybe ten to 12 percent. We will have to monitor that to see. Some of the real effects will not be evident for three to six months” when credit exposure to Dorian victims will “start to take off”. Mr Rolle added that further constraining any rapid growth in bad bank loans is the external economic environment, which largely drives Bahamian growth, remains positive due to strong US consumer confidence and low unemployment numbers. Still, Dorian represents a setback for the commercial banking industry’s efforts to tackle its legacy non-performing loan pile and free up financing to fuel renewed economic growth. The Central Bank had been prodding its licensees to more aggressively clean up the issue, and the data shows this was having some reward.
FROM PAGE ONE
given significant uninsured or underinsured families who could face a lengthy recovery process as they rely either on public assistance or have to rebuild out of incomes,” Mr Rolle added. Expanding on his $2.5bn damage estimate under
THE TRIBUNE
Tuesday, November 5, 2019, PAGE 5
6,000 restructure debt during 2019 first half TOP TOURISM OFFICIAL SHARES EXPERIENCE FROM PAGE ONE
“Demand for commercial credit also firmed vis-à-vis the first half of 2018; the approval rate was 86 percent.” The Central Bank data collected from its banking licensees showed that second quarter loan applications, in particular, hit their highest levels for three years. The main reason why consumer loan applications were rejected was because the potential borrower’s existing debt service ratio was too high, which typically means more than 40-45 percent of their income is already going to pay existing debt obligations. This accounted for 30 percent of rejections, with the inability to make downpayments or provide collateral security for the loan attributed to another nine percent and 23 percent , respectively. Underemployment, an inability to provide evidence of income and delinquency on previous loan facilities were also cited as factors for why the banks turned down applicants. As for mortgages, the Central Bank’s survey found that there were around 1,100 such loan applications submitted during the 2019 first half, with the majority - some 800 - focused on acquiring existing properties. Yet again, though, 43 percent of rejected applicants were turned down because they were already carrying too much debt. The inability to make a downpayment also cost another ten percent of those who were rejected. John Rolle, the Central Bank’s governor, yesterday said that 15 percent of loan applicants “on average” were unsuccessful in obtaining credit from commercial banks due to issues such as their existing debt burden and failure to
‘Totalled’ Abaco resort awaiting summer re-open
FROM PAGE ONE
charity called Water Mission on the island that is providing us with water. “The lady that started Water Mission had a home in Green Turtle Cay. Her name is Molly Green. She passed
supply downpayments and/ or collateral to secure the financing. “Generally the economy has been improving,” he said. “More and more persons have been able to qualify for credit, and more persons are being encouraged to apply for credit. We see a lot of interest from the consumer.” While commercial bank lending was concentrated in consumer loans, an “increase in interest for mortgages” had also been seen. Pressed by Tribune Business as to whether the banks’ focus on consumer lending was a problem for other sectors of the economy, the Central Bank governor replied that despite going through “cycles where one category of lending is stronger than another, the overall structure of banks’ loan positions has not changed radically in recent periods”. He added: “Residential mortgages are still a very important part of bank lending, The productive side of the economy, it’s construction and renovations around housing that are important to bank lending. To the extent the mortgage market shows real signs of interest, that’s a positive for banks lending to construction.” Focusing on the positives, Mr Rolle said: “Prior to the hurricane, there were signs of a marginal turnaround in private sector lending as the contraction in credit tapered off. The Central Bank expects overall lending to begin to expand over the near-term, as new lending outpaces ongoing repayments. “Some results from the Lending Conditions Survey released today show that demand for credit is now trending stronger than in 2018. Banks have also approved a larger share of recent applications than in the past. The most common
reason for unsuccessful loan applications continues to centre around households already carrying too much debt or putting up insufficient collateral to secure the debt.” The Central Bank revealed that total Bahamian dollar credit outstanding for the first nine months of 2019 contracted by $22.2m compared to a $39.1m expansion during the same period in 2018. “Net credit to government declined by $15.8m, relative to a $114m increase in 2018,” the regulator added. “Credit to public corporations contracted by $18m, slowing from the $25.6m expansion in 2018. Private sector credit rebounded by $11.6m vis-àvis the prior year’s decline of $100.6m.” While commercial credit to the private sector grew by $47m, and consumer credit by $32.9m, mortgage loans outstanding narrowed slightly by $2.6m in the 2019 first half, Elsewhere, Mr Rolle said The Bahamas’ foreign currency reserves were projected to end 2019 “at exceptionally strong levels potentially above $1.5bn” due to reinsurance inflows associated with Dorian-related payouts and government spending on restoration. “Hurricane rebuilding will place an increased demand on foreign exchange usage. In this context, the Central Bank expects that external reserves could decrease slightly during 2020. These resources will be spent on construction materials, foreign services and other recovery related imports during 2020,” Mr Rolle said. “Access to foreign exchange in this mix is an essential part of The Bahamas’ ability to recover from hurricanes without putting the value of the Bahamian dollar in jeopardy. For the government and households
a way some time ago but her husband has been keeping the charity going. They supply water to hard to reach places all over the world. We are so thankful for them.” Desmond Bannister, minister of works, who is also responsible for BPL said in his address to Parliament on the Disaster Preparedness Bill that BPL has spent just over $1.6m on equipment and materials as teams work to fully restore electricity in
Abaco and its cays following Hurricane Dorian. He also estimated that some 3,000 utility poles were lost as a result of the hurricane. Mr Bannister added: “BPL, along with members of the Caribbean Electric Utility Services Corporation, are working together to quickly rebuild Abaco’s infrastructure and restore power in microgrid fashion until BPL is capable of rebuilding its entire network.
it is, therefore, most advantageous to reduce debt as much as possible in ordinary times so that comfortable space can exist to borrow in times of emergencies... “As of today, the external reserves are just above $1.5bn, which is about $200m higher than at this same point last year. It captures some of the initial reinsurance inflows, but also stronger net retention of tourism and foreign investment receipts from over the first nine months of the year. “Some of The Bahamas’ rebuilding will also use foreign exchange from ongoing earnings on tourism and foreign investment activities, and some costs will be covered from savings which some families and business have stored up.”
THE Ministry of Tourism’s director-general, Joy Jibrilu, pictured, shared her tourism experience with conference attendees at the recent International Tourism Investment Conference alongside ministers of tourism from Kenya, Malta and Jamaica. The conference featured The Bahamas in two panels, discussing opportunities for investment in travel and tourism development projects, infrastructures and services in African and island nations as well as financing tourism and travel development projects.
PAGE 6, Tuesday, November 5, 2019
Central Bank eyes ‘movable collateral registry’ initiative FROM PAGE ONE institution, obtaining credit and subsequently defaulting with banks unaware of their previously wretched history with competitors. A registry of “movable assets” pledged as collateral, together with judgments and liens secured on them, would certainly boost a lender’s ability to properly assess a borrower’s creditworthiness it may be difficult to pull together given that information would have to be sought from numerous sources
within a court system and public sector that is not digitised. Mr Rolle, meanwhile, said the bankruptcy “laws and systems need to be strengthened” as they dealt with how credit disputes are resolved. “That’s an area in terms of credit ease that we should be looking to seen an improvement,” he added. The government’s ease of doing business committee, chaired by Lynn Holowesko, recently blamed The Bahamas’ eight-spot fall to 152nd in the World Bank rankings for access to credit on the time taken to establish this country’s first credit bureau. “With particular reference to getting credit, The
THE TRIBUNE Bahamas missed an opportunity for an improved ranking because of delays in passing legislation and licensing of the Bahamas credit bureau. We now understand that licensing of the credit bureau is expected by year-end,” the committee said in a recent statement. Mr Rolle, responding yesterday, said the Central Bank was “in the final process of licensing the operator”, Italian-headquartered CRIF SpA. “I would say that in terms of the credit bureau process, and how it factors into the ease of doing business, there was nothing in that process where the country regressed or fell back,” he added. “From an access to credit point of view, the credit bureau will be up and operating next year. It will be going through a lot of outreach with stakeholders needing to be reporting information. It will also be expected to progress to the point in 2020 where financial institutions begin to provide information.”
While the creation of the credit bureau will “itself lead to a significant improvement”, Mr Rolle cautioned that The Bahamas needed to understand rankings such as those produced by the World Bank and focus more on tangible improvements that helped spur greater private sector profitability and investment. Meanwhile, he confirmed that the Central Bank’s initiative to develop a digital version of the Bahamian dollar will launch its pilot test phase in Exuma before year-end and then roll-out in Abaco as a “follow up” in early 2020. “There’s been a lot of technical work going on behind the scenes,” Mr Rolle added, “testing aspects of the communications infrastructure. There’s even been some revisits in terms of the communications hardware given some of the damages experienced during the hurricane. “We have been focusing more intently on the kind of mobile communications one can put in very quickly
after a storm so that wireless communications can be enabled. This is fine tuning so that as we enter the final months of the year we can enter into the pilot phase on Exuma.” The Central Bank governor said the digital currency initiative, known as Project Sand Dollar, would “get into Abaco in early 2020 as it provides an opportunity to put in place systems almost from the ground up as business and industry returns to the community and likely have to rebuild”. Expressing concerns over whether there was “an adequate supply of labour” for a speedy reconstruction post-Dorian, Mr Rolle added: “Economic activity came to a halt in Abaco and Grand Bahama during September 2019 as a result of Hurricane Dorian. “Neither island recorded any tourism activity, given the complete shutdown of the infrastructure. The rest of The Bahamas was not entirely spared, as these regions experienced either visitor declines or much reduced arrivals gains for
both hotels and vacation rental properties. “However, the timing of the storm during the slower part of the tourist season allowed The Bahamas to preserve strong tourism performance over the first nine months of the year,” he continued. “This momentum is sufficiently strong that the Central Bank expects The Bahamas will still record positive growth in 2019, underpinned by tourism, but much lower than had the storm not occurred. “In addition, foreign investment stimulus is expected to be sustained, with inflows targeting expansion in resort and cruise infrastructure in New Providence, Grand Bahama and several Family Islands. The setback from the hurricane is projected to be more noticeable in 2020, with resort facilities in Abaco absent during the peak winter season and Grand Bahama’s economy only expected to be partially recovered. An overall contraction in the economy or a flat outcome is possible.”
CIBC deal positive ‘if breaks up the cartel’
approvals needed by a foreign investor. “No requests have been made to this point, just an introduction,” Mr Turnquest confirmed. John Rolle, the Central Bank governor, declined to comment when asked by Tribune Business whether the regulator had received any approval applications or contacts related to the CIBC FirstCaribbean transaction. Mr Turnquest’s comments indicate that while no deal has been concluded yet, its completion is likely imminent. CIBC has been seeking to exit the Caribbean market for some years, having aborted a $240m New York initial public offering (IPO) last year when it was unable to obtain the valuation it was seeking. Media reports, which first surfaced in Latin America, last week reported that the Gilinski Group is aiming to acquire a 70 percent majority stake in CIBC FirstCaribbean for around $2.2bn. The latter was yesterday tight-lipped on the
deal, although it did not deny it. “CIBC FirstCaribbean International Bank is a strong, well-performing business that continues to grow across the region. As a publicly-traded company in the Caribbean, there has always been investor interest in our bank,” a spokesperson said via e-mail “Our focus is on enhancing our long-term growth prospects while creating value for our clients, shareholders and other stakeholders. If and when decisions are made about our business, we’ll advise our stakeholders as appropriate.” Mr Smith yesterday said there were several potential implications for The Bahamas and its commercial banking industry if the Gilinski Group acquisition was ever consummated. “It could mean two things,” he told Tribune Business. “The Canadians tend to march in concert. They have that type of banking structure. If one bank moves out you have to wonder whether
the others will look at downsizing or moving out in the medium term. This area is not as profitable as it used to be because of the great recession and huge debt overhang being carried in the Caribbean.” There has long been speculation that Royal Bank of Canada and Scotiabank want to follow CIBC’s lead, with the Canadian banks having endured enough of the Caribbean region’s low economic growth and high non-performing loan levels, but both have denied this. “On the other hand,” added Mr Smith, “if we want to be positive, a new actor if it has deep pockets could provide the kind of competition in the market to challenge the oligopoly. The banks here, they move in concert on fees and spreads (deposit and loan interest rates). You don’t move from one bank to another and expect a much better deal. “If a new company comes in and decides to break up the cartel it could be beneficial to the local economy.”
FROM PAGE ONE
K Peter Turnquest, deputy prime minister, yesterday confirmed that he had been “introduced” to the potential CIBC FirstCaribbean purchaser who he declined to name. He added that the government had yet to receive any applications for the necessary National Economic Council (NEC) and Investments Board
THE TRIBUNE
Tuesday, November 5, 2019, PAGE 7
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WHILE LOSSES MOUNT, UBER CEO EXPECTS PROFITABILITY IN 2021 NEW YORK Associated Press
THE losses at Uber are mounting, but the ridehailing heavyweight now predicts it will be profitable in about two years. CEO Dara Khosrowshahi said Monday that the company’s goal is to reach profitability — when adjusted for interest, taxes, depreciation and amortisation — for the full year of 2021. “We hope that we’ve shown you that we can execute against not just delivering top-line growth, but also top-line growth with discipline,”
Khosrowshahi said on a conference call with investors. “We can only do so with the really, really hard work of all our employees on a global basis, and also the partnership of the cities that we work with, and our drivers.” The San Francisco company picked up the pace of its revenue growth, racking up $3.81bn in the third quarter, 30% more than the same time last year. Last quarter, revenue had grown 14% compared to the prior year. But Uber lost $1.16bn in the quarter, extending its streak of losses. The third-quarter loss included $401m in stock-based
compensation related to its initial public offering. The loss amounted to 68 cents a share and was wider than the $986m shortfall in the same period last year. The per-share loss in the latest quarter, however, was smaller than what Wall Street had expected. Analysts were forecasting a loss of 82 cents a share, according to FactSet. Its revenue also topped expectations for $3.63bn in the quarter. Uber convinced more people to use its array of products. The number of monthly active consumers across all its platforms grew to 103 million, up 26% from the same time last year, but below the 104.4 million expected by analysts polled by FactSet. Gross bookings grew to $16.5bn, which was 29% more than the same time last year, but lower than the $16.7bn expected by analysts polled by FactSet. Last month, executives at Lyft said they expect the rival ride-hailing company to become profitable in the fourth quarter of 2021. Khosrowshahi provided few details on how different units within Uber would change for the company to reach its new profitability target. “While we will of course continue to invest in growth and the power of our platform, especially in some of our newer, high-potential businesses like Eats, we will continue to be thoughtful stewards of capital, make tough decisions where necessary, and make any dollar investment count,” Khosrowshahi said. Both Uber and Lyft are facing potentially higher costs for paying drivers. In September, California passed a law requiring ridehailing drivers to be classified as employees, which could entitle them to minimum wage, benefits and workers compensation. In response, Uber and Lyft proposed a ballot initiative aiming to exempt their companies from the new law. “We think that there’s a better answer out there,” Khosrowshahi said. California’s new law was figured into Uber’s future profitability prediction, and Uber is already operating within similar laws in states such as Massachusetts, New Jersey and Connecticut, he said. California represents 9% of Uber’s global rides and eats bookings, Khosrowshahi said.
PAGE 8, Tuesday, November 5, 2019
THE TRIBUNE
From toast of town to toxic: Facebook CEO on outs with Dems WASHINGTON Associated Press MARK Zuckerberg’s social network in Washington is shrinking. Bipartisan hostility against Facebook has been building for months, fueled by a series of privacy scandals, the site’s role in Russian meddling in the 2016 presidential campaign and accusations that Facebook crushes competitors. Now, with the 2020 elections approaching, Democrats especially are homing in on the conduct of the social media giant and its refusal to fact-check political ads and remove false ones. “When you’re the number one monopoly, people are going to come after you,” says John Feehery, a veteran Republican communications strategist. The challenge for Democrats, as he sees it: “They’re facing a base that is very angry and restive. So they have to be much more aggressive in taking on corporations.” Zuckerberg enjoyed a cozy relationship with the Obama administration. But in the face of growing public outrage, the co-founder of the upstart born under the motto “Move fast and break things” is learning the art of smoothing over and piecing back together. His new strategy: a personal blitz featuring serial private meetings in Washington with key lawmakers of both parties and President Donald Trump; small,
FACEBOOK CEO Mark Zuckerberg testifies before a House Financial Services Committee hearing on Capitol Hill in Washington on Facebook’s impact on the financial services and housing sectors. Photo: Andrew Harnik/AP off-the-record dinners at his California home with conservative journalists and opinion makers; and the occasional public address or TV interview. Addressing criticisms from Democratic lawmakers and civil rights groups over Facebook’s track record on fighting discrimination, Zuckerberg and Chief Operating Officer Sheryl Sandberg planned to host a dinner last night with civil rights leaders. The two executives want to hear the leaders’ “direct perspective and feedback”, the company said. The Rev Al Sharpton said last week that Zuckerberg would meet with him and others to discuss
concerns such as Facebook’s handling of political messages. Misinformation on the platform can contribute to the suppression of voting by African Americans and other minorities, civil rights leaders say. Zuckerberg has become lobbyist-in-chief for a tech giant that has about 60 people officially playing that role. The company spent an estimated $12.6m on federal influencing last year. The political ad issue hits close to home for Democrats. Facebook, as well as Twitter and Google, refused in September to remove a misleading video ad from Trump’s reelection campaign that targeted toptier Democratic candidate
PUBLIC NOTICE
Joe Biden. Sen Elizabeth Warren, another top Democratic contender, chose to hit back by running her own ad and making it personal by falsely claiming that Zuckerberg had endorsed Trump for 2020. Warren, who has called for breaking up Facebook and other tech giants, acknowledged the ad’s deliberate falsity to make her point. Then came Zuckerberg’s speech last month at Georgetown University in which he promoted free expression as the foundation for Facebook’s refusal to take down content it deems newsworthy, even if the material violates company standards. The next week,
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, REANZO ANDRELL CRISPIN SMITH also known as REANZO ANDRELL CRISPIN SMITH KEMP and also known as REANZO ANDRELL C S KEMP of Red Bays, Andros, General Delivery The Bahamas, intend to change my name to REANZO ANDRELL CRISPIN SMITH. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.
The Public is hereby advised that I, ASHANTI MURPHYof Garden Hills #1 Narcicuss Avenue, P.O.BOX N733 Nassau, N.P., The Bahamas, intend to change my name to ASHANTI SMITH. If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Officer, P.O.Box N-742, Nassau, N.P., Bahamas no later than thirty (30) days after the date of publication of this notice.
MARKET REPORT www.bisxbahamas.com
(242) 323-2330
MONDAY, 4 NOVEMBER 2019
(242) 323-2320
ALL SHARE INDEX: CLOSE: 2,211.43 | CHG: -0.03 | %CHG: 0.00 | YTD: 101.98 | YTD%: 4.83 BISX LISTED & TRADED SECURITIES 52WK HI 4.45 22.65 7.00 5.92 2.60 2.00 5.47 11.75 6.17 4.64 12.40 2.81 3.85 10.21 7.51 16.50 9.40 3.64 14.20
52WK LOW 3.65 20.91 4.90 4.46 1.01 0.22 2.00 9.25 6.15 3.95 6.75 2.35 1.76 7.51 6.10 12.10 6.20 3.01 13.01
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
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
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
52WK HI 2.27 4.31 2.07 194.86 158.57 1.65 1.82 1.74 1.21 8.01 9.60 6.83 11.39 12.30 10.68 10.00 8.69 11.79
52WK LOW 1.67 3.04 1.68 164.74 116.70 1.58 1.69 1.66 1.09 6.41 7.62 5.66 8.65 10.54 9.57 9.88 8.45 11.20
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)
MUTUAL FUNDS
MARKET TERMS
LAST CLOSE 3.67 17.43 6.00 5.92 2.46 1.80 4.70 11.06 6.16 4.12 8.55 3.49 3.85 10.13 7.51 16.50 9.33 3.54 14.20
CLOSE 3.68 17.43 6.00 5.92 2.46 1.80 4.70 11.06 6.16 4.12 8.55 3.49 3.85 10.03 7.51 16.50 9.33 3.54 14.20
CHANGE 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.10 0.00 0.00 0.00 0.00 0.00
1000.00 1000.00 1000.00 1000.00 1.00 10.00 1.00
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
LAST SALE 100.00
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
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
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
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
VOLUME 6,000
2,400
VOLUME
NAV 2.27 4.30 2.07 193.72 158.42 1.65 1.82 1.74 1.19 8.23 10.10 6.85 11.24 12.28 10.74 9.92 8.68 11.38
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 0.250 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
0.000 0.000 0.000 0.000 0.000 0.000 0.000
0.000 0.000 0.000 0.000 0.000 0.000 0.000
P/E 15.4 18.7 N/M 16.0 N/M N/M -10.7 15.3 13.7 22.4 61.1 34.2 8.2 15.5 10.3 20.2 9.9 17.4 22.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0
YIELD 4.62% 7.23% 0.00% 4.22% 0.00% 1.11% 0.00% 6.51% 3.57% 2.91% 0.00% 12.44% 1.56% 3.27% 3.20% 3.27% 2.14% 3.39% 4.30% 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% 2.77% 3.84% 1.38% 3.46% 2.03% 2.76% 4.99% 6.20% 7.18% -0.08% 2.88% 3.80% 4.56% 6.50% 3.35% 4.17% 5.77% 7.89% 7.17% 8.76% 11.07% 12.58% 3.50% 4.96% 8.92% -0.97% 5.22% 5.44% 2.95% 2.64% -0.71% 0.16% 7.40% 2.70% 10.20% 1.30%
NAV Date 30-Sep-2019 30-Sep-2019 27-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Sep-2019 30-Mar-2019 30-Mar-2019 30-Mar-2019
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
during prickly questioning by Democratic lawmakers at a televised House hearing, Zuckerberg dug in on not fact-checking politicians’ speech and the handling of hate speech and potential incitements to violence. “This really is not about money,” Zuckerberg insisted. “It is important that people can see for themselves what politicians are saying.” Facebook says political advertising accounts for less than half of 1% of its total revenue. Separately from political advertising, Facebook has policies and improved technology that it says now enables it to more efficiently detect terrorist content in many languages. Following the mass shooting in New Zealand last spring, for example, Facebook now prohibits livestreaming by people who have violated rules covering organisations and individuals deemed dangerous and potentially violent. In the lambasting from Democrats, Rep Joyce Beatty of Ohio, the vice chair of the Congressional Black Caucus, focused on Facebook’s track record on civil rights and diversity. She told Zuckerberg that he had “ruined the lives of many people, discriminated against them.” As part of a legal settlement with civil rights groups, Facebook changed its ad-targeting systems this year to prevent discrimination in housing, credit and employment ads. It previously had allowed such ads to be targeted to people based on age, sex or race, which is illegal. At some points, friendlier Republican members of the House Financial Services Committee asked Zuckerberg how he was holding up through the six-hour hearing. “I’m doing OK,” replied the 35-year-old co-founder, chairman and CEO. He’s one of the world’s richest individuals, with a net worth currently estimated at $71bn. Summing up, Rep Maxine Waters, the California Democrat who leads the committee, told Zuckerberg, “You have opened up
a discussion about whether Facebook should be broken up.” A mandated breakup would be the worst-case scenario for Facebook and the other big tech companies. Facebook says splitting up large tech corporations would make the election system more vulnerable to interference because the companies wouldn’t be able to work together to prevent it. For Zuckerberg and the Democrats, “it may be a nasty divorce,” said James Thurber, a professor of government at American University who founded its Center for Congressional and Presidential Studies. “He clearly has taken a stand that’s really quite unpopular.” Thurber called Zuckerberg’s backstage celebrity approach to lobbying efforts “very dangerous”. “You’ve got to be very careful about that, if you think you can do it yourself,” he said. Rep David Cicilline, a senior House Democrat who leads the Judiciary Committee’s investigation into the market dominance of big tech companies, is working on legislation that may target the profits made by Facebook from political ads it knows are false. The measure likely would also apply to social media rivals Twitter and Google. Last Wednesday, Twitter made the unexpected announcement that it will ban all political advertising from its service. “This is a good first step,” Cicilline tweeted. “Your move, Google/Facebook.” Zuckerberg’s quick riposte, during Facebook’s quarterly conference call on earnings, was to reaffirm the company’s commitment to the value of free speech, including for politicians. It’s a sharp reversal of fortune for Facebook from the days of the Obama administration, when the company was hailed as an exemplar of innovation and an engine of economic growth. Campaign money flowed to the Democrats from big tech companies.
NOTICE NOTICE is hereby given that DEMAIN DETROY FERGUSON 91B Tambrind Street, Freeport, Grand Bahama, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of November, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that MERISELENE GERTIN, of Fritz Lane, Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 29th day of October, 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE NOTICE is hereby given that WILSON DORTILUS , of Blue Hill Road Nassau, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of November 2019 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.